SA insurtech startup Naked raised $38 M Series B2 funding to accelerate expansion
Naked, an insurtech startup based in South Africa, has raised US $38 million in Series B2 funding to support its expansion through increased investment in automation and artificial intelligence, product and market expansion, and improved advertising.
Naked, which was founded in 2018 by actuaries Ernest North, Sumarie Greybe, and Alex Thomson, has developed an end-to-end digital platform that lets users handle every aspect of their insurance experience from an app.
By utilizing AI and automation, its platform provides instantaneous and comprehensive coverage for vehicles, homes, contents, and stand-alone items, thereby establishing a novel insurance experience. Lower premiums and greater control over their insurance experience are advantages for consumers. They can switch or pause their coverage online without interacting with a contact center agent, and they can receive a final insurance quote in less than 90 seconds.
In 2021, Naspers led Naked to raise US $11 million in a Series A funding round. In February 2023, the company secured a US $17 million Series B funding round. Now, it has raised a US$38 million Series B2 round, with the help of international impact investor BlueOrchard and additional backing from current backers Hollard, Yellowwoods, International Finance Corporation (IFC), and DEG, a development finance organization in Germany.
By increasing its investments in automation and artificial intelligence, expanding its product and market reach, and improving its advertising to draw in and expand its clientele, the new funding will support Naked’s growth. The money will also be used to satisfy regulatory capital requirements related to Naked’s business’s quick expansion and development.
“This investment marks an exciting milestone as we continue to define a new category of insurance,” said Alex Thomson, co-founder of Naked. “It’s a strong vote of confidence from both our existing shareholders and our new investor, BlueOrchard. Their support validates the success of our business model and highlights the significant progress we’ve made in making insurance more accessible and convenient. Building off the base of a loyal community and unique technology platform, we are positioned for strong growth in the years ahead. We’re deeply grateful to South African consumers for embracing this new generation of insurance and to our investors for their trust in our vision.”
The investment made by BlueOrchard supports its objective of using digital innovation to improve financial inclusion.
“Naked’s focus on using technology to expand access to insurance fits perfectly with our InsuResilience Investment Fund strategy,” said Richard Hardy, private equity investment director for Africa at BlueOrchard. “This funding will help Naked broaden its reach and develop new products that strengthen the financial resilience of its customers.”
