South African insurtech startup Naked has secured US$38 million in Series B2 funding to power its growth by deepening investment in automation and AI, product and market expansion, and enhancing advertising.
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 banked a US$17 million Series B in February 2023. It has now raised a US$38 million Series B2 round, joined by global impact investor BlueOrchard, and also featuring increased support from existing backers Hollard, Yellowwoods, International Finance Corporation (IFC), and Germany’s development finance institution DEG.
The new funding will fuel Naked’s growth by deepening its investment in automation and AI, product and market expansion, and enhancing advertising to attract and grow its customer base. Additionally, the funds will be used to meet the regulatory capital requirements tied to the rapid growth and evolution of Naked’s business.
“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.”
BlueOrchard’s investment aligns with its goal of leveraging digital innovation to enhance 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.”
