SA Insurtech startup, Naked, raises $11m in a funding round led by Naspers

SA artificial intelligence (AI)-driven Insurtech startup, Naked, announced that it has raised R160 million (US$11 million) in a funding round led by Naspers who invested R120 million (US$8.3 million). Other participants in the round include existing Naked investors, Yellowwoods and Hollard.

According to Naked, the funds will be used to expand its team, continue the investment in the technology that puts customers in control, meet the insurance needs of a growing portion of the South African market, and enter into international markets

This is Naspers’ second insurtech investment in two weeks and its biggest investment to date. Naspers recently invested $2.3 million (R34 million) in Ctrl, a digital short-term insurance advice platform. The investment was also done via Naspers Foundry, its tech investment vehicle committed to invest R1.4 billion to grow early-stage tech companies.

Co-founded by actuaries Alex Thomson, Sumarie Greybe, and Ernest North, Naked uses AI and automation to create a new type of insurance experience.

Built from scratch and free from legacy processes and systems, Naked is pioneering a business model that aims to restore trust in how insurance works. Consumers benefit from lower costs as well as more control of – and convenience in – their insurance experience. They can get a final insurance quote for their home, its contents, their standalone items or their car in less than 90 seconds, and switch or pause their cover, all online, without speaking to a contact centre agent.

According to Alex Thomson, Co-founder of Naked, “Our ambition is to build insurance that people love by offering an experience that is affordable, convenient and transparent. We have come a long way since our launch in 2018 towards meeting these goals, including enabling customers to buy cover online in seconds, allowing them to claim and manage cover on our award-winning app, and passing on huge savings through sustainably lower premiums.”

“But this is just the start of our journey to reinvent insurance. We are excited to have an investor of Naspers Foundry’s calibre onboard to work with us as we expand our team, continue to invest in the technology that puts customers in control, meet the insurance needs of a growing portion of the SA market and enter into international markets.”