Dear reader,
Why does there seem to be more fintech startups than insurtech startups?
Doesn't the insurance market (medical, auto, home) represent as big an opportunity for digitization as financial services do?
The answer is simple: launching an insurance startup is more expensive. New insurance companies are (rightly) scrutinized by regulators, as they have to prove they can pay out the claims they cash in premiums for.
Insurtech founders thus need to raise a ton of capital for two reasons:
- Reaching the "solvency ratios" the regulator demands.
- Maintaining the lights on during the years it takes to do so.
In 2025, Mexican startup Crabi announced a $13.6M round to scale its fully-digital auto-insurance product.
Below is a 3,000+ word exclusive interview with Crabi's COO and co-founder, Ignacio Martinez.
Ignacio previously spent over two years at Nubank, the Brazilian fintech behemoth. It's fascinating to see where Crabi is copy-pasting the Nubank ethos and where it has to innovate from scratch.
Topics we cover:
1) Why most Mexican vehicles are uninsured.
2) Crabi's pivot from a DTC to a B2B2c model, and the rationale behind it.
3) Why Crabi opted for building an insurance in-house rather than underwriting for third-parties.
4) How does one actually launch a new insurance company.
5) Where Crabi's model converges and diverges with Nubank's.
6) How Crabi measures revenue.
7) Lessons from managing Crabi's network of suppliers (body shops, road assistance companies, etc).
... and much more.
Paid Realistic Optimist subscribers can read the full interview below. I appreciate your trust.
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Biography
Ignacio Martinez is the COO and co-founder of Crabi, a Mexican startup building a fully-digital auto-insurance. In 2025, Crabi announced a $13.6M funding round. The company has sold over 50,000 policies and closed 2025 with $32M in annualized revenue.
Ignacio’s prior experiences include being head of loyalty for Brazilian unicorn Nubank, as well as launching his own VC-backed HR tech startup in Mexico (Alana).
What lessons did you transfer from your first startup adventure (Alana) over to Crabi?