Johannesburg-based car insurance start-up Pineapple has announced the conclusion of a R400 million funding round. According to the company, this transaction sets a new record as the largest insurtech fundraised on the continent.
The investment round was led by new investors Futuregrowth, Talent10 and MIC, while the business received additional investment support from existing investors, including Old Mutual ESD, Lireas Holdings, ASISA ESD Fund and E4E Africa.
Pineapple says the funding round was completed off the back of robust growth and sustainable claims ratios that exceeded industry standards for a newer insurance portfolio.
Pineapple co-founder and CEO Marnus van Heerden says:
This funding round stands as a testament to our tech and AI-powered operating model, enabling our mission to offer affordable and comprehensive insurance to all South Africans.
In a statement, the insurtech firm noes its technology allows the company to service customers at 20% of the cost of traditional insurance providers.
It points out this enables organisations to pass on this cost saving in insurance premium savings for customers, further accelerating growth.
Amrish Narrandes, head of Futuregrowth Asset Management’s Private Equity/Venture Capital, adds:
Pineapple’s innovative approach to insurance aligns seamlessly with our investment philosophy. Their exceptional growth and customer-centric model exemplify a potent combination of technology and market understanding. With our R100 million investment, we are thrilled to spearhead this round, fueling Pineapple’s journey in redefining the insurance landscape.
Pineapple co-founder Ndabenhle Ngulube says;
Our business was founded on the principle of customer centricity. We place our customers at the centre of every decision we make, which has really paid off for us.
