XILO Raises $7.2M Series A Round
Summary
SAN DIEGO XILO, a provider of artificial intelligence-based workflow automation for the insurance industry, announced this month that it received $7.2 million in Series A funding. The two co-founders were childhood friends and ultimately sought to iron out the complexities of insurance industry workflows.XILO raised $6 million in seed funding toward the end of 2022 and, according to Corrin, has operated extremely efficiently since then, with the company turning a profit at least one or two months per quarter in 2024.We service insurance agents and our big focus is on independent brokers as of today, and we want to continue to fortify that, Corrin said. So a good chunk of the (Series A) capital will be allocated to bring on engineers and product people that are going to focus on the software products.Corrin added that XILO does not expect to evaluate the need for additional capital until the end of 2026 thanks to its operating efficiency.The main goal of XILOs insurance workflow software is to automate processes that involve many complex data points that are often very similar, such as sifting through applications that include open-ended questions for potential policyholders or leveraging unstructured data like HTML-based websites and PDF files.Parsing that data is a relatively easy task for humans, albeit a time-consuming one, and has historically been complicated to automate.This is a really good use case for a large language model, doing that data transformation while keeping an agent in the loop so that data accuracy is high, so that you can speed up the process of filling out these questionnaires, Corrin said.XILOs large language model is a blend of existing foundation models and the companys own machine learning operations. The company estimates it can cut out up to 75% of tedious work for agents, freeing them up for smoother workflows.The industry today has a lot of disparate solutions, Corrin said. And thats not good, thats not how a platform should be built.Since the 2022 seed funding round, XILO has processed more than 1 million insurance applications and serves nearly two dozen major brokers.Corrin said the company aims to bolster its AI programming in the near future, with the goal of expanding its use of AI agents that can perform actions autonomously.In order to really capitalize on what we see as the biggest opportunity to help our customers, were going to have to invest a lot more into AI and into AI agents, he said, adding the need to invest into engineers that can come on and help continue to fortify that part of our business.XILO FOUNDED: 2018 CEO: Jon Corrin HEADQUARTERS: San Diego BUSINESS: AI workflow automation for the insurance industry EMPLOYEES: 20 FUNDING: $7.2 million WEBSITE: xilo.io CONTACT: [email protected] NOTABLE: Co-founders Jon Corrin and Eli Zaragoza, now the companys president, originally devised XILO to solve problems for the insurance agency owned by Zaragozas father.