South African artificial intelligence (AI)-driven insurtech company Naked, which offers a new, fully digital way for consumers to insure their cars, homes, and valuables, has raised US$17 million in Series B funding to drive its growth.
Launched in 2018 by actuaries Alex Thomson, Sumarie Greybe, and Ernest North, Naked has built an end-to-end digital platform that enables customers to manage their entire insurance experience online from an app.
Its platform offers comprehensive and instant cover for cars, homes, contents, and standalone items, using AI and automation to create a new type of insurance experience. Consumers benefit from lower costs as well as more control of their insurance experience. They can get a final insurance quote in less than 90 seconds, and switch or pause their cover, all online, without speaking to a contact centre agent.
Naked raised a US$11 million Series A funding round, led by Naspers, in 2021, and has now secured US$17 million in Series B funding. 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 – is leading the funding round, which also includes the German Development Finance Institution (DEG) and Naked’s original investors Yellowwoods and Hollard.
“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 to expand into new markets.”
Adamou Labara, IFC country manager for South Africa, said improving access to insurance products was a key driver of financial inclusion in South Africa as it has the potential to preserve assets, increase incomes and reduce uncertainties.
“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.
