South Africa's Naked Raises $38M to Expand Digital Insurance Platform
TLDR
- South African insurtech startup Naked has secured $38 million in a Series B2 funding round led by BlueOrchard
- Naked offers an AI-powered platform enabling customers to manage insurance entirely online
- The funds will drive investment in automation, market expansion, product development, and advertising
South African insurtech startup Naked has secured $38 million in a Series B2 funding round led by BlueOrchard, with participation from existing backers Hollard, Yellowwoods, International Finance Corporation (IFC), and DEG. This brings its total funding to $66 million.
Launched in 2018, Naked offers an AI-powered platform enabling customers to manage insurance entirely online. Users can insure cars, homes, and standalone items, with the ability to get quotes, switch, or pause coverage in under 90 seconds, all without speaking to agents. The funds will drive investment in automation, market expansion, product development, and advertising. Naked also plans to meet regulatory capital requirements tied to its growth.
Co-founder Alex Thomson said the investment validates the company’s model and its progress in making insurance more accessible. BlueOrchard’s Richard Hardy noted the alignment with their strategy to enhance financial inclusion through technology.
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Key Takeaways
Naked’s success highlights a shift in emerging markets toward digital-first financial services. Emerging markets face challenges like regulatory hurdles and low insurance penetration, but companies like Naked are leveraging technology to address these gaps. Traditional insurance models often rely on face-to-face interactions, limiting accessibility and scalability. Naked uses automation and AI to lower costs and offer a seamless digital experience, attracting a growing segment of tech-savvy consumers. The insurtech’s funding journey reflects increasing global investor interest in African fintechs.
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