Crabi Raises Millions to Expand AI Auto Insurance in Mexico

Mexican digital-native auto insurance platform Crabi raised US$13.6 million in a funding round led by Kaszek and IGNIA. The capital will support the company’s efforts to expand its distribution network and scale its AI-driven underwriting and operations.

“Applying modern engineering and data science to legacy insurance processes unlocks significant gains in pricing, speed, and risk selection,” says Daniel Bernardez, CEO and Co-Founder, Crabi.

Mexico remains one of the largest automotive markets in Latin America. However, according to Crabi, over 70% of vehicles in the country are uninsured. “Traditional insurance models have long been marked by limited accessibility, high costs, and slow service,” says Bernardez to Axios. Crabi entered this market gap as the first tech-native insurer to receive regulatory approval in over 25 years, allowing the company to build a fully integrated platform and target underserved consumers.

The funding round was led by Kaszek and IGNIA, with participation from 30N Ventures, Redwood Ventures, Carao Ventures, Azuro Capital, and Newtopia VC. This investment positions Crabi to accelerate efforts to increase insurance penetration in Mexico. The company plans to onboard additional partners, including brokers, auto dealers, leasing companies, and vehicle financing platforms, by embedding its mobile-first insurance offering into their workflows.

In the past three years, Crabi has recorded more than double year-over-year growth and scaled its run rate by over 20 times. These results were achieved while improving the company’s loss ratio and operational efficiency. The improvements are attributed to a lean organizational model and proprietary technology infrastructure.

Crabi’s technology stack includes automated policy issuance, real-time claims support, and data-based pricing, all accessible through mobile platforms. These tools enable the company to streamline the insurance value chain and offer services at lower costs compared to traditional providers. Its underwriting models apply AI to analyze client data, allowing for more accurate risk assessment and pricing flexibility.

The company’s distribution strategy centers on strategic partnerships. By integrating its platform with external players across the automotive value chain, Crabi increases policy distribution and enhances underwriting accuracy. These integrations allow access to shared customer data, supporting more granular risk evaluation, improving cost controls, and accelerating claim cycles.

Nicolás Berman, Partner, Kaszek Ventures, tells PR News that Crabi’s regulatory advantage and vertically integrated infrastructure position it as “the most disciplined and well-positioned insurtech in Latin America.” He adds that regulatory compliance is a key enabler of operational efficiency in a highly controlled industry and provides a base for future scalability.

The newly secured funding will be used to grow Crabi’s partner network, enhance its AI-based claims and pricing capabilities, and expand insurance access to currently uninsured drivers. Crabi also plans to strengthen its technical infrastructure and reinforce compliance with insurance regulatory requirements to ensure sustainable growth.