Investors update: UK-based insurtech startup expands to South Africa

UK-based insurtech startup YuLife expands into South Africa

Highlights

• YuLife, a UK-based provider of digital insurance services, has launched its operations in South Africa, marking its first entry into Africa.
• The company’s product offerings include a well-being app that harnesses the latest trends in behavioral science and game mechanics to encourage employees to make proactive lifestyle changes while prioritizing prevention by de-risking individuals through healthy activities.
• YuLife recently expanded to the US and claims to have seen more than 5x growth in premiums year-on-year. In July 2022, the insurtech startup raised a $120 million Series C, bringing the company’s total funding to $206 million.

Source: TechCabal

Our Takeaway

YuLife’s expansion into Africa comes at a time when startups are riding on the rapid penetration of digital and mobile devices to overcome the historically low penetration rates across the continent. Its choice market is logical; some 60% of South Africans report having an insurance product, and insurance penetration, measured using premiums as a percentage of GDP, was 13.7% in 2020 – one of the highest in the world. In addition, the gross written premium of the life insurance market—estimated at ~$40.5 billion in 2021—is expected to grow by more than 5% from 2021 to 2026.

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Autochek acquires majority stake in Egypt’s Autotager

Highlights

• Nigeria-based car financing platform Autocheck has acquired a majority stake in Egypt’s used cars marketplace, AutoTager, which was founded in 2021 by Amr Rezk. The value of the transaction was not disclosed. 
• The acquisition will enable Autochek to deepen its presence in North Africa starting with Egypt, the second-largest automotive market in Africa. The company currently has a presence in nine countries across East, West, and North Africa.
• This is the third acquisition for Autochek in less than a year and the sixth in under two years.

Source: Wamda

Our Takeaway

With over 6 million cars on Egypt’s roads, the majority of which are passenger cars and second-hand vehicles, the northern African nation has one of Africa’s most extensive vehicle fleets. Like every populous developing country, the large market for used cars, which is dominated by unorganized dealers and classifieds, has attracted startups looking to digitize sourcing, distribution, and financing. With this deal, Autocheck now has active operations in nine countries across East, West, and North Africa, with a partner-led footprint of more than 2,000 dealers and workshop locations.

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Bitcoin, Ether price rally halts as cryptocurrency values fall

Highlights

• The crypto market witnessed a halt in its price rally on Tuesday, after days of continuous growth in values of the digital currencies. Bitcoin recorded a drop of 2.25% early Tuesday, taking its price to $29,353
• Bitcoin has settled at its highest price in the last eight months. However, it is worth noting that over the last 24 hours, the value of BTC has dropped by $607.
• Ether followed Bitcoin towards the loss-making side of the crypto price chart on Tuesday. Incurring a loss of 0.68%, ETH is currently trading at $2,081.

Source: FXStreet

Our Takeaway

Crypto is coming off a winning week in which prices were boosted by optimism around Ethereum’s latest tech upgrade, dubbed “Shapella” (also called “Shanghai”). The update is meant to bring greater liquidity to the network by allowing “locked up” ether to be withdrawn and ultimately draw in more institutional interest in the long term. Bitcoin and ether advanced 8% and 12%, respectively, for the week. But analysts say it wouldn’t be surprising to see a small correction in prices this week and there could be some selling pressure as some investors may want to take profits from the previous week.