The South African insurtech startup Naked, which is powered by artificial intelligence (AI) and provides customers with a new, entirely digital approach to insure their vehicles, houses, and belongings, has acquired US $17 million in Series B investment to fuel its expansion.
The end-to-end digital platform Naked has created allows clients to manage their complete insurance experience online using an app. Naked was founded in 2018 by actuaries Alex Thomson, Sumarie Greybe, and Ernest North.
Their platform uses AI and automation to provide a new kind of insurance experience, offering comprehensive and immediate cover for automobiles, houses, goods, and independent products. Both cheaper prices and greater control over their insurance experience are advantageous to consumers. Without speaking to a contact center person, they may switch or suspend their coverage, obtain a final insurance estimate in less than 90 seconds, and do all of this online.
In 2021, Naspers led a US $11 million Series A investment round for Naked. The company currently has US $17 million in Series B funding. The German Development Finance Institution (DEG), Naked’s original investors Yellowwoods and Hollard, and the International Finance Corporation (IFC), a member of the World Bank Group and the largest global development institution focused on the private sector in emerging markets, are all participants in the funding round.
“More than five years ago, we set out to create an insurance platform that people would love for being fair, convenient, and transparent, at game-changing prices. Since our launch in 2018, we have been overwhelmed by customers’ enthusiasm for our offering and have exceeded our growth targets every year,” said Thomson.
“We are excited to bring new investors on board in this funding round as part of accelerating our growth plans. This investment validates our position as a pioneer of fully digital insurance in South Africa, and will enable us to grow our team, continue to invest in technology that puts customers in control, and expand into new markets.”
Improving access to insurance products is a critical factor in driving financial inclusion in South Africa, according to Adamou Labara, IFC’s country manager for that nation. This is because insurance products have the ability to protect assets, boost earnings, and lessen the uncertainty.
“IFC’s investment in Naked will help increase the penetration of tech-driven insurance in the country and contribute to job creation and economic growth,” he said.