Making insurance easy and accessible, the South African-based insurtech startup, Naked, has raised $11 million in Series B round.
The investment was led by Naspers, who was among the investors in Ctrl’s $2.3 million Series B round two weeks ago, another insurtech platform based in South Africa.
In Naked’s round, the early-stage tech investor, Naspers, made its highest investment so far, $8.3 million. Other investors that participated include Yellowwoods and Hollard.
“We’re excited to support Naked in their journey of pioneering a new generation of insurance, giving consumers access to convenience, control, and savings with its end-to-end digital processes. This fits in with our focus on backing purpose-driven technology businesses. Investing in Naked is consistent with the portfolio we’ve built to date, and Naspers Foundry’s healthy pipeline of potential future investments,” Fabian Whate, head of Naspers Foundry, said.
The digital insurance company leverages an artificial intelligence model to provide a range of short-term insurance options. Cars, buildings and home contents insurance are also given by the startup.
Founded by Alex Thompson, Sumarie Greybe, and Ernest North in 2018, the startup offers insurance for individual items like laptops and phones. They go beyond cars and the likes.
A unique feature of the platform is its charitable endeavours. At the end of each year, money left over in the claims pool goes to charities nominated by clients.
“Our ambition is to build insurance that people love by offering an experience that is affordable, convenient, and transparent. We have come a long way since our launch in 2018 towards meeting these goals…,” Alex Thomson said.
“But this is just the start of our journey to reinvent insurance. We are excited to have an investor of Naspers Foundry’s calibre on board to work with us as we expand our team, continue to invest in the technology that puts customers in control, meet the insurance needs of a growing portion of the SA market and enter into international markets,” he stated.
It is worthy of note that the insurance sector is accelerating fast in Africa. With a current valuation of over $60 billion, it holds a good portion of Africa’s gross domestic profit.