$1.5 M pre-seed funding secured by Nigerian insurtech startup ETAP to drive car insurance penetration
ETAP, a Nigerian business that makes it easier to acquire auto insurance and file claims, has raised $1.5 million in pre-seed capital to expand its staff and push car insurance adoption across Africa.
ETAP makes buying and claiming auto insurance as simple as snapping a photo, with drivers able to pick from a variety of daily, weekly, monthly, and quarterly plans.
Machine learning is used by the business to create intelligent risk profiles that calculate suitable rates for each motorist, letting them to save money by driving safely.
The driving experience is gamified using modern telematics to enhance driving behaviour, and drivers may earn Safe Driving Points that can be traded for shopping vouchers, gasoline, movie and concert tickets, and other interesting events.
ETAP has insured over 130,000 individual trips and 500,000 kilometres in automobile rides since starting in beta in November 2021, and it has now obtained US $1.5 million in pre-seed capital for future expansion. Mobility 54, Toyota Tsusho’s venture capital arm, and CFAO Group led the round, which also included Tangerine Insurance, Graph Ventures, Newmont, and other angel investors.
The money will go toward the launch of ETAP’s app, which allows users to buy insurance in 90 seconds, file claims in three minutes or less, and earn points for safe driving and avoiding accidents. The company will also look at additional options for providing insurance services to automobile owners in other African countries.
“Just like any other digital service, we believe Nigerians should be able to buy and claim car insurance without having to “call a guy”. We also believe that rewarding good drivers can be a catalyst for better driving and making our roads safer,” said Ibraheem Babalola, CEO and founder of ETAP.
“This is why we have created Africa’s most powerful car insurance app and we are excited to have raised these funds to bring more users on board. Too often, the process of buying and claiming insurance in Africa is so out of touch with the everyday reality of most people but we are changing the game and making the process just as enjoyable as any other experience that consumers access on the mobile phone.”
ETAP is tackling several difficulties that affect the vehicle experience in Africa, according to Yumi Takagi, project manager at Mobility 54.
“We are excited to support and work with them to bring their innovation to more drivers across the continent. We believe that ETAP will engage with this important role and revolutionise the automotive insurance industry with their powerful technology,” he said.
