Root, a business located in Cape Town that is developing infrastructure for the digital insurance sector, has raised $3 million in initial investment to expand its reach into other countries.
Root is a cloud-native end-to-end insurance platform that allows businesses of all sizes to create, market, and administer digital insurance products while also enabling new interaction channels.
After receiving money, the business, which bundles the “hard stuff” in insurance and exposes programmable insurance products via easy-to-use APIs, now aims to expand internationally.
Invenfin, Base Capital, Savannah Fund, P1 Ventures, Luno, and FireID, as well as a small group of high-impact angel investors, contributed $3 million to the seed round. Root plans to use the funds to expand its flexible low-code digital insurance platform into additional markets.
“As Root continues to unlock innovation in insurance, we are making it easier for innovators to put customers first and take the industry into the age of truly personalized and convenient embedded products,” said Louw Hopley, the startup’s chief executive officer (CEO) and co-founder. “Closing this funding means that we can power more innovators, globally, and accelerate the process of transformation.”
Stuart Gast, CEO of Invenfin, said his company had been watching Root closely for a few years and was excited to be working with the company as it entered this next chapter of growth.
“We are confident that Root is positioned to have a massively positive impact on insurance, both in South Africa and abroad,” he said.
