Series B funding worth US$38 million will enable South African insurtech start-up Naked to enhance its service through AI and automation.
Africa Business Technologies reports that the funding for the six-year-old company was raised through existing investors – Hollard, Yellowwoods, the International Finance Corporation and Germany’s development finance institution – as well as new backer BlueOrchard, a global impact investor.
‘This investment marks an exciting milestone as we continue to define a new category of insurance,’ says Alex Thomson, co-founder of Naked.
Naked’s unique selling point is that it is completely digital, eschewing any human intervention. In addition, the company takes a fixed percentage of premiums and any surplus is donated to causes nominated by its customers.
BlueOrchard’s private equity investment director for Africa, Richard Hardy, says Naked’s focus on technology aligns with the investor’s InsuResilience Investment Fund strategy. ‘This funding will help Naked broaden its reach and develop new products that strengthen the financial resilience of its customers.’