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Quick Read: South African insurtech Naked secured $38 million in a Series B2 funding round led by BlueOrchard, with support from investors like Hollard and the IFC. The funds will enhance AI-driven automation, expand product offerings, and support market growth.
South African insurtech company Naked has secured $38 million (approximately R700 million) in a successful Series B2 funding round. This round was led by global impact investor BlueOrchard, with increased support from existing investors, including Hollard, Yellowwoods, the International Finance Corporation (IFC), and Germany’s development finance institution, DEG.
The new funding will fuel South Africa’s Naked’s investments in automation and artificial intelligence (AI), enabling the company to expand its product offerings, reach new markets, and grow its customer base through enhanced advertising. Additionally, it will help meet regulatory capital requirements tied to Naked’s rapid growth.
This funding milestone follows South Africa’s Naked’s $17 million Series B round in February 2023, which was led by the IFC and supported by Yellowwoods, Hollard, and DEG. At the time, the Series B round brought the company’s total funding to $31.6 million, setting the stage for the innovation and growth reflected in the latest Series B2 funding.
A New Approach to Insurance
Founded in 2018 by actuaries Alex Thomson, Sumarié Greybe, and Ernest North, Naked has developed a fully digital insurance platform powered by AI and automation. Through its mobile app, customers can receive final insurance quotes in under 90 seconds, purchase policies online, submit claims, or even pause accident coverage—all without making phone calls.
Naked’s unique “Naked Difference” business model sets it apart. Unlike traditional insurers, Naked charges a fixed percentage of premiums to operate. Any surplus from unclaimed funds is donated to causes chosen by its customers. This transparent approach eliminates conflicts of interest in claims processing, fostering trust by ensuring valid claims are handled fairly and efficiently.
Comprehensive Digital Insurance Solutions
Since its launch, Naked has expanded its offerings to include fully digital car and home insurance, allowing customers to manage their insurance needs entirely online. The platform provides instant coverage for cars, homes, contents, and standalone items, using AI-driven automation to create a seamless insurance experience.
Transforming the Insurance Industry
This latest investment highlights the growing demand for digital transformation in the insurance sector. By integrating AI and automation, Naked is improving efficiency, reducing costs, and delivering better customer experiences. The support from high-profile investors underscores confidence in Naked’s innovative approach and its potential to reshape the insurance landscape in South Africa and beyond.
Future Plans
Looking ahead, Naked plans to continue leveraging technology to expand access to insurance, contributing to financial inclusion and resilience. The company aims to reach more customers, develop new products, and play a pivotal role in modernizing the insurance industry.
