South African insurtech Naked secured a $38 million Series B2 funding round, marking a significant milestone in its mission to revolutionize insurance with AI and automation.
The funds will help the company scale its innovative digital insurance platform and deepen its impact in a rapidly evolving industry.
Driving the news
- The funding round was led by global impact investor BlueOrchard, with increased participation from existing backers such as Hollard, Yellowwoods, the International Finance Corporation (IFC), and Germany’s development finance institution, DEG.
- This builds on Naked’s $17 million Series B round in February 2023, bringing its total funding to over $69 million.
How it works
- Naked’s fully digital insurance platform offers customers the ability to get insurance quotes in under 90 seconds, manage policies, and file claims—all through its mobile app.
- Unique to its model, Naked takes a fixed percentage of premiums for operations, and any surplus from unclaimed funds goes to customer-chosen causes, eliminating conflicts of interest in claims processing.
What they’re saying
- Naked: The funding will fuel investments in automation, product expansion, and advertising while supporting regulatory capital requirements tied to its growth.
- BlueOrchard: The lead investor highlighted Naked’s role in driving financial inclusion and efficiency in insurance.
What’s next
Naked plans to expand its product offerings and market reach, using its tech-driven platform to improve access to insurance for underserved populations and further strengthen its position in the insurtech landscape.
Source: TechPoint Africa
