Pineapple, a South African insurtech business, has secured Series B capital of ZAR400 million, or US $21.3 million, to support its expansion.
Pineapple, which was founded in 2017, enables the business to deliver services to clients at a 20% discount from typical insurance carriers. This helps them to further accelerate expansion by passing on these cost savings to clients in the form of lower insurance premiums.
It has declared the end of a Series B investment round of ZAR400 million (US $21.3 million), headed by new investors Futuregrowth, Talent10, and MIC. Additional investment assistance has been provided to the business by its current investors, which include Old Mutual ESD, Lireas Holdings, ASISA ESD Fund, and E4E Africa.
Remarkably strong growth and steady claims ratios—which are considerably above industry norms for a more recent insurance portfolio—led to the completion of the funding round.
“This funding round stands as a testament to our tech and AI-powered operating model, enabling our mission to offer affordable and comprehensive insurance to all South Africans,” said Pineapple co-founder and CEO Marnus van Heerden.
Pineapple’s creative approach to insurance, according to Amrish Narrandes, head of Futuregrowth Asset Management’s venture capital and private equity division, fits in perfectly with his company’s investment ethos.
“Their exceptional growth and customer-centric model exemplify a potent combination of technology and market understanding. With our ZAR100 million investment, we are thrilled to spearhead this round, fueling Pineapple’s journey in redefining the insurance landscape,” he said.
