Wagmo

Market position

Wagmo competes in pet insurance and preventative pet care against legacy carriers such as Geico, Progressive and Nationwide and against startups including Lemonade, Pumpkin, Figo and Healthy Paws. Its investors framed the opportunity around low penetration: roughly 3% of pets are insured, attributed to poor customer experience and outdated offerings from legacy carriers. The broader pet care segment attracted more than $520 million in venture funding in the year preceding the 2021 Series A.

At the time of its Series A, Wagmo was described as the only provider offering wellness and insurance plans separately, allowing customers to buy standalone preventative-care coverage — routine exams, vaccines, grooming, bloodwork and fecal tests — which most pet insurers do not sell as a standalone product, and to upgrade to accident and illness insurance later. Investors also cited fast reimbursements through online payment systems, a mobile-first product and SMS-based support.

Technology

A mobile-first platform through which members photograph and submit receipts for covered routine and medical expenses, with reimbursement processed to direct deposit, Venmo or PayPal within 24 hours. The company also uses veterinary data to structure preventative-care reimbursement and supports customers via SMS messaging, and offers veterinary telehealth through its VETalk product.

Go-to-market

Direct-to-consumer sales of app-based wellness and insurance subscriptions, combined with a developing enterprise/benefits channel in which larger organizations offer Wagmo to employees; the company's website is oriented around employers activating the benefit. Partnership development was named as a use of Series A proceeds.

Dog and cat owners, particularly younger pet owners and new puppy owners whose costs are concentrated in routine care, plus employers seeking to add pet health coverage to their employee benefits packages.

Geography

United States. Reported as based in New York, NY, with locations also listed in Boston, MA (West Street / River Street), Union Square in New York, and New Canaan, CT. The company has stated a goal of offering its insurance nationwide.

History

After its 2017 founding, Wagmo raised an oversubscribed $3 million seed round in 2019 co-led by Harlem Capital and Vestigo Ventures. In July 2021 it announced a $12.5 million Series A led by Revolution Ventures, at which point the team numbered 14 people and Revolution's Clara Sieg and Graham Ober joined the board of directors. The company said it would use the Series A to build new product features, form partnerships and grow the team. Its product line has since expanded beyond wellness and insurance plans to include veterinary telehealth (VETalk) and perks, marketed as an employer-activated benefit.

Risks & controversies

Wagmo operates in a pet insurance market with well-capitalized incumbents including Geico, Progressive, Nationwide and Lemonade as well as venture-backed challengers. Management has cited prioritization and resource allocation in building out the employer benefits opportunity as its central operational challenge, and insurance availability has not been established nationwide.