Naked, a South African AI-driven InsurTech company offering car and home insurance, has raised $17m in Series B funding.
According to a report from Disrupt Africa, the round was led by 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.
The round also saw participation from the German Development Finance Institution (DEG) and Naked’s original investors Yellowwoods and Hollard.
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.
The 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.
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.
Thomson said, “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.”
FinTech Global research recently reported that South African deal activity slowed down in the third quarter of 2022.
The country reached four deals in total during the third quarter of 2022, a 55% reduction from Q2 2022. Overall deal activity from Q1-Q3 2022 reached 24 deals in total which puts deal activity on track to reach 32 deals in 2022, a 40% drop from the previous year.
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