Lemonade Inc. has announced the signing of a $120 million Series C funding round led by the SoftBank Group, with participation from existing investors. Lemonade said in a statement that it plans to use the funds to accelerate its global expansion in 2018.

Founded by Shai Wininger and Daniel Schreiber, Lemonade is licensed as a full-stack property and casualty insurance carrier. The company began offering homeowners and renters insurance in New York in late 2016, and is now licensed by 25 states, home to two-thirds of the U.S. population.

"SoftBank is an ideal partner for us and we are thrilled to have them on board," said Mr. Wininger, Lemonade's president. "We share SoftBank's conviction that big data and machine learning are set to profoundly remake our entire industry, and SoftBank has the vision and means to enable this common vision to become a reality."

SoftBank joined prior investors Aleph, Allianz, General Catalyst, GV (Google Ventures), Sequoia Capital, Sound Ventures, Thrive Capital, Tusk Ventures, and XL Innovate. SoftBank Group's David Thevenon will join Lemonade's board.

"By combining big data and AI with a seamless user experience, Lemonade is truly revolutionizing the insurance industry," said Mr. Thevenon, a senior investment professional at SoftBank Group. "We have been impressed by the team's creative approach to disrupting the traditional insurance model with innovations like Zero Everything policies and Giveback, and we look forward to supporting the company's rapid growth."

According to Lemonade, the transaction is expected to close in the first quarter of 2018, subject to receipt of regulatory approvals and satisfaction of other customary closing conditions.