Pitzi, cellular insurance coverage startup, bets on on-line retail to earn BRL 200 million in 2022
The company has more than 2 million devices protected. Free Market, Amazon and Motorola are Pitzi’s main partners in online retail
THE Pitzia mobile insurance startup, has been building partnerships with companies in the online retail to expand the offer of solutions that make people’s lives easier and increase the revenue of partners.
With more than 2 million devices protected, the company founded by the American Daniel Hatkoff in 2012, has more than 100 partners in 2,500 distribution points and expects to earn more than R$ 200 million in 2022.
The number of smartphones in Brazil surpassed the mark of 242 million devices in 2022, according to data from the Center for Applied Information Technology of the Getúlio Vargas Foundation (FGVCia). Despite the increase in hiring in recent years, the number of handsets with insurance remains a minority.
“In Brazil, only 4% of smartphone owners have insurance. In the United States and Europe, the percentage is much higher. Since 2020, we have doubled in size. This growth involves a change in Brazil’s culture in relation to insurance. There is still a lot of room to grow”, says Tatiany Martins, Pitzi’s commercial director.
The timing couldn’t be better for the company. In 2020, with more people dependent on cell phones to work and talk to loved ones in the pandemic, the demand for insurance that could cover damage to the devices increased, resulting in an 85% growth in the company’s revenue. In 2021, revenue was around R$ 100 million reais.
Martins believes that the search for insurance grows year after year due to the increasing value of smartphones, and consequently their maintenance, and the higher turnover. “In the past, Brazilians changed cell phones every two years. Today, the average is 13 months,” he says.
Partnership with online retailers and services
With services for accidental breakage, theft, theft and device loss, Pitzi bets on the indirect sales model to continue gaining space in the Brazilian market.
At the end of 2020, insurtech started a partnership with the e-commerce giant Free market to offer a policy against theft of smartphones to the platform’s more than 27 million customers. Since then, amazon and Motorola also became partners and Pizti’s services are offered to end customers when purchasing a cell phone.
Martins explains that the insurance value can reach 30% of the value of the device and that half of the value remains with the partner who made the sale.
“Our mission in the coming years is to reduce this commission so that cell phone insurance becomes more accessible. The expectation is to sell more insurance with lower commissions, making the final value more attractive for the customer”, he says.