An Africa-based startup, Roots has announced raising $3 million in the seed financing tranche to fabricate the groundwork for the insurance economy globally. Working in its niche, Roots uses APIs in assisting developers and businesses to fasten the launch of insurance products as compared to the orthodox ways.
According to sources, the recent funding will allow Roots to initiate adjustable low-code digital insurance plan while it spreads through European markets preferably in the UK, France and Germany based on the level of insurance play.
As per reliable reports, Roots generated the funding from venture capital investors like Base Capital, Invenfin, P1 Ventures, Fire ID, Savannah and Luno along with a few exorbitant angel investors.
It has been believed that Roots began its operations on the assumption that capital and compliance acted as barriers against insurance, preventing businesses and software developers play around innovation with it.
Louw Hopley, CEO of Roots based on his observation suggested that insurance is still stuck in the 1900s. He further stated that with digitalization in every-aspect, insurance is still distant from any development. Roots aim to break these barriers and introduce the use of API to introduce insurance in the modern digital era, he added.
Hopley has aimed to build a platform through which all the actuaries, product innovators, developers will log in to generate their insurance products and supply to the market.
Reportedly, Roots came into field in 2016 with programmable cards and bank accounts as its initial products followed by insurance API’s, its present main feature.
Roots’ main source of revenue generation is through subscription licensing cost depending on severity of their needs and client size. The company also provides the businesses and developers ways to reach more customers and manage compliance issues.
For the record, the company essentially aims at businesses rendering insurance as a secondary product to retailers and banks; non-insurance firms with a stable clientele and most of the South Africa’s affinity insurance players.