Naked, a South African insurtech firm, has successfully raised $38 million (around R700 million) in its Series B2 funding round.
This investment was spearheaded by global impact investor BlueOrchard and included increased contributions from existing backers such as Hollard, Yellowwoods, the International Finance Corporation (IFC), and Germany’s development finance institution, DEG.
The newly acquired capital is set to bolster Naked’s advancements in automation and artificial intelligence, broaden its range of products, extend its market presence, and amplify advertising efforts to attract more customers. Moreover, the funds will assist in meeting regulatory capital requirements linked to the company’s swift expansion.
This funding milestone builds upon Naked’s previous success of securing $17 million in a Series B round in February 2023, led by the IFC with participation from Yellowwoods, Hollard, and DEG.
At that time, the company’s total funding reached $31.6 million, laying the groundwork for the continued growth and innovation evident in the current Series B2 round.
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Year founded
Founded in 2018 by actuaries Alex Thomson, Sumarié Greybe, and Ernest North, Naked has developed a fully digital insurance platform that leverages artificial intelligence 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.
The company distinguishes itself with its “Naked Difference” business model. Unlike traditional insurers, Naked takes a fixed percentage of premiums to operate, allocating any surplus from unclaimed funds to causes selected by its customers.
This approach removes conflicts of interest in claims processing, fostering trust by ensuring valid claims are handled fairly and promptly.
Since its inception, Naked has expanded its services to include fully digital car and home insurance, allowing customers to manage their entire insurance experience online.
The platform offers comprehensive and instant coverage for cars, homes, contents, and standalone items, using AI and automation to create a new type of insurance experience.
This investment underscores the growing trend of digital transformation in the insurance industry. By utilizing AI and automation, companies like Naked are enhancing efficiency, reducing costs, and improving customer satisfaction.
The support from prominent investors highlights confidence in Naked’s innovative approach and its potential to reshape the insurance landscape in South Africa and beyond.
Looking ahead, 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.
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