Naked Financial Technology, the South Africa-based insurtech, has reportedly raised more than $11 million in a funding round led by Naspers, one of the largest global tech investors. The funding round also saw participation from existing investors Yellowwoods and Hollard, as per reports.
For the uninitiated, Naked was founded in 2018 by Alex Thomson, Ernest North, and Sumarie Greybe. The digital insurance platform covers cars, homes, content, and standalone items, and employs artificial intelligence (AI) to provide customers with new processes and experiences, reports claim.
Africa’s insurance sector is estimated to be worth over $68 billion in yearly gross written premiums, according to credible sources. Reportedly, South Africa accounts for 70% of this industry, with over $47 billion in annual gross written premiums. It is worth noting that only a fraction of personal insurance sold in the region is done without human intervention.
However, the pandemic has changed the way millennials in South Africa consume insurance products. Naked seemingly offers customers lower costs compared to traditional insurance platforms and more importantly, promises them more control over their insurance experience.
The company stated that customers receive a final insurance quote for their car, home and its contents, or standalone items, in under 90 seconds. The company further added that customers can switch or pause their cover without talking to a contact center agent.
As Naked has been built from the ground up, it can add features that resonate with its customer base, claim reliable sources. One such feature enables users to pause their car premiums when they are not driving due to lockdown, reports suggest.
Co-founder Alex Thomson stated that they aimed to build insurance that customers love by giving them an affordable, transparent, and convenient experience.
This news arrives at the heels of Naspers’ pervious investment, through its early-stage tech investment arm Naspers Foundry, in another South African insurtech firm, Ctrl, in its $2.3 million Series B round, claim reliable sources.
Naked’s latest investment was apparently a Series A funding round. Lead investor Naspers Foundry invested $8.3 million, marking its largest investment yet, Naspers wrote in a statement. Notably, Naspers targets early-stage tech companies in the region that seek to address major societal needs.