South African insurtech startup pineapple, backed by Old Mutual Insure, has successfully raised $22 million in its Series B funding round, making it the most-funded insurtech startup in Africa, surpassing Kenya’s Turaco.
With previous funding of $5.4 million in a Series A round in 2021 and $1.9 million from a competition and seed round, Pineapple has now secured a total of $29.3 million. The funding was led by new investors Futuregrowth, Talent10, and MIC, alongside existing investors Old Mutual ESD, Lireas Holdings, ASISA ESD Fund, and E4E Africa.
Pineapple, founded in 2017 by Matthew Elan Smith, Marnus van Heerden, Ndabenhle Junior Nglube, and Sizwe Ndlovu, distinguishes itself by providing affordable online insurance and annually returning unused premiums to its customers. The insurtech operates on a tech and AI-powered model, offering a fully digital experience where users can upload a picture of the item they want to insure and receive a quote in under 10 minutes. Pineapple’s unique approach has resonated with customers, particularly those who are first-time insurance buyers, constituting almost half of its customer base.
Despite Africa being the second fastest-growing region for insurance globally, the continent’s insurance penetration rate remains around 3%. Pineapple addresses this challenge by leveraging technology and fostering customer trust through its entirely digital platform. The insurtech’s CEO, Marnus van Heerden, emphasized that the funding round underscores the success of Pineapple’s innovative model in delivering affordable and comprehensive insurance to South Africans. The investment is expected to further support Pineapple’s mission of expanding its reach and impact in the African insurance market.
Source: TechCabal