Outmarket has raised $34.5 million in Series B funding to expand its AI software for commercial insurance agencies and brokers. The round, led by SignalFire, comes four months after the startup raised a $17 million Series A and values the company at $335 million, according to a person familiar with the investment.
The company announced the Series B on September 25, with participation from Fika Ventures, Permanent Capital Ventures, TTV Capital, and Dash Fund. Outmarket said more than 300 insurance agencies and over 10,000 users now use its software, including more than a quarter of the top 100 U.S. brokers.
Founder and CEO Vishal Sankhla launched Outmarket in late 2023 after previously leading product at digital life insurance distributor Ethos and working at Facebook and Uber. He said about 95% of insurance in the U.S. and worldwide is still sold through human agents, while much of the process remains manual.
AI Handles Commercial Insurance Paperwork
Outmarket focuses on commercial insurance, where businesses can require combinations of general liability, workers’ compensation, directors and officers liability, and other coverage. Sankhla said there are more than 250 types of coverage, with different application forms, documents, and review processes depending on the business and its risks.
The startup uses AI to automate administrative work such as comparing quotes, checking policies, analyzing coverage, preparing proposals, managing certificates, and processing loss runs. Outmarket said its Proposal Builder alone now creates thousands of client proposals each month.
The software is designed to help brokers complete those tasks faster while leaving customer-facing work to human agents. Sankhla said that can include responding directly to customers during emergencies or helping them decide which policies fit their needs.
More Than 300 Agencies Now Use Outmarket
Outmarket said its customer base has grown to more than 300 agencies since launching a new product 14 months ago. Sankhla described that adoption as relatively fast for the insurance sector.
The company competes with other startups developing AI software for insurance brokers, including Fulcrum AI and FurtherAI. The U.S. property and casualty insurance market exceeded $1 trillion in annual direct premiums in 2024.
Sankhla said Outmarket sees room to expand by helping agencies automate more of their existing workflows. The Series B follows the company’s $17 million Series A announced four months earlier.
Featured image credits: Magnific.com
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