South African insurtech company Naked has raised R710.78 million in a Series B2 funding round to accelerate its growth and deepen its investment in cutting-edge technology.
The funding round, announced on Tuesday, was led by global impact investor BlueOrchard, with increased backing from existing investors Hollard, Yellowwoods, the International Finance Corporation (IFC), and Germany’s development finance institution (DEG).
A New Era in Insurance
Founded in 2018 by actuaries Alex Thomson, Sumarié Greybe, and Ernest North, Naked is transforming South Africa’s insurance industry with its AI-driven platform. The platform offers unprecedented convenience and transparency:
- Fast Quotes: Obtain final insurance quotes in under 90 seconds.
- Fully Digital Processes: Customers can buy coverage, submit claims, or pause accident coverage entirely online—no phone calls required.
- End-to-End Automation: Naked is the only platform in South Africa to sell 100% of its car, home, and single-item insurance policies online without human intervention.
This innovative approach has allowed Naked to scale rapidly while delivering significant cost savings and improved customer experience.
Fueling Growth Through Technology and Expansion
Co-founder Alex Thomson said the R700 million investment would enable Naked to:
- Advance AI and Automation: Deepening investment in proprietary technology to enhance customer experience.
- Expand Product Offerings: Introducing new insurance products to meet market demands.
- Grow Its Customer Base: Increasing advertising efforts to attract more policyholders.
- Meet Regulatory Requirements: Allocating funds to meet regulatory capital needs tied to its rapid growth.
“This is a strong vote of confidence from our existing shareholders and new investor BlueOrchard. Building on a loyal community and unique technology platform, we are positioned for strong growth in the years ahead,” said Thomson.
Backing Innovation for Financial Inclusion
BlueOrchard’s Private Equity Investment Director, Richard Hardy, emphasized how Naked aligns with its mission to leverage digital innovation for financial inclusion. “Naked’s focus on using technology to expand access to insurance fits perfectly with our InsuResilience Investment Fund strategy,” Hardy said.
What’s Next for Naked?
As part of its next phase, Naked plans to set up a cell captive structure, underwritten by the Hollard Specialist Insurance Company. This model requires Naked to provide regulatory capital to safeguard policyholders and ensure it can handle extreme loss scenarios.
With this new funding, Naked is poised to lead South Africa’s insurtech market into a future defined by greater convenience, transparency, and inclusivity.
