South African insurtech company Naked has announced the successful completion of a $38 million (approximately R700 million) Series B2 funding round.
Led by global impact investor BlueOrchard, this investment round saw increased participation from existing investors, including Hollard, Yellowwoods, the International Finance Corporation (IFC), and Germany’s development finance institution, DEG.
This significant funding injection will enable Naked to accelerate its investment in automation and AI, expand its product offerings and market reach, and amplify its advertising efforts to grow its customer base. Additionally, the funds will support regulatory capital requirements associated with the company’s rapid growth.
Building on its previous success, Naked’s latest funding round follows a $17 million Series B round in February 2023, led by the IFC. This new investment brings the company’s total funding to date to over $69 million, underscoring its position as a leader in the insurtech space.
Founded in 2018 by actuaries Alex Thomson, Sumarié Greybe, and Ernest North, Naked has developed a fully digital insurance platform that leverages AI and automation to enhance customer experience.
Through its mobile application, customers can obtain final insurance quotes in under 90 seconds, purchase coverage online, submit claims, or pause accident coverage without the need for phone calls.
Naked’s innovative “Naked Difference” business model sets it apart from traditional insurers. By taking a fixed percentage of premiums to operate and allocating any surplus from unclaimed funds to causes selected by its customers, Naked removes conflicts of interest in claims processing, fostering trust and ensuring valid claims are handled fairly and promptly.
With this investment, Naked plans to continue leveraging technology to expand access to insurance, aligning with broader goals of enhancing financial inclusion.
The company aims to broaden its reach and develop new products that strengthen the financial resilience of its customers, contributing to the overall growth and modernization of the insurance sector.
