South Africa’s Naked Insurance Secures $38 Million Series B Funding

South Africa's Naked Insurance Secures $38 Million Series B Funding

Naked, a South African insurtech startup, has taken another significant leap forward in redefining insurance with the announcement of a $38 million Series B funding round. This milestone emphasises the company’s commitment to leveraging technology for greater convenience, transparency, and cost efficiency.

The funding round was led by global impact investor BlueOrchard and supported by existing backers Hollard, Yellowwoods, International Finance Corporation (IFC), and Germany’s development finance institution, DEG. These investments reflect growing confidence in Naked’s mission to reimagine insurance in Africa.

Revolutionizing Insurance Through Innovation

Founded in 2018 by actuaries Alex Thomson, Sumarié Greybe, and Ernest North, Naked has reshaped the insurance landscape by offering a fully digital platform powered by artificial intelligence (AI) and automation. With its innovative app, customers can obtain final insurance quotes in under 90 seconds, purchase coverage, file claims, or even pause accident coverage—all without the need for human intervention.

As the first platform in South Africa to sell 100% of its car, home, and single-item insurance policies online, Naked has demonstrated an unmatched capacity for scalability. By combining convenience with cost savings, its proprietary technology not only improves user experiences but also strengthens risk selection and pricing, ensuring sustainable unit economics.

The Difference Naked Brings 

Beyond its technological prowess, Naked’s business model stands out for its emphasis on fairness and community impact. The “Naked Difference” ensures that the company takes a fixed percentage of premiums and donates unclaimed surplus funds to causes chosen by its customers. This approach removes conflicts of interest in claims processing and fosters trust among its user base.

“This investment marks an exciting milestone as we continue to define a new category of insurance,” said Alex Thomson, co-founder of Naked. “It’s a strong vote of confidence from both our existing shareholders and our new investor, BlueOrchard. Their support validates the success of our business model and highlights the significant progress we’ve made in making insurance more accessible and convenient.”

A Pathway for Growth

The newly acquired funds will be channeled toward scaling Naked’s operations. This includes investing further in AI and automation, expanding its product offerings and market reach, and bolstering advertising efforts to grow its customer base. Additionally, part of the funding will be used to meet regulatory capital requirements as the company continues to grow rapidly.

BlueOrchard’s investment aligns with its mission of leveraging digital innovation to drive financial inclusion. “Naked’s focus on using technology to expand access to insurance fits perfectly with our InsuResilience Investment Fund strategy,” said Richard Hardy, Private Equity Investment Director for Africa at BlueOrchard. “This funding will help Naked broaden its reach and develop new products that strengthen the financial resilience of its customers.”

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