Naspers : Foundry leads R160 million (US$11 million) Series A investment in insurtech company Naked
August 04, 2021 at 04:06 am EDT
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Naked is South Africa's first fully digital insurance platform offering comprehensive and instant cover for cars, homes, contents, and standalone items
New innovative business model aims to make insurance more accessible and restore trust in how insurance works
Naspers invests R120 million (US$8.3m) with the balance of the round funded by existing investors
Naspers Foundry's 2nd insurtech investment, and its largest investment to date
Naspers,through its early-stage tech investment vehicle Naspers Foundry,announced a R120 million (US$8.3m) investment inNaked,the artificial intelligence (AI)-driven insurtech company that offers a new, fully digital way for consumers to insure their cars, homes, andvaluables. The transaction is Naspers Foundry'ssecond insurtech investment in two weeks and itsbiggest investment to date.The investment is part of Naspers's R1.4 billion commitment to grow South Africa's early-stage tech ecosystem through Naspers Foundry.
Co-founded by actuaries Alex Thomson, Sumarie Greybe, and Ernest North, Naked uses AI and automation to create a new type of insurance experience. Built from scratch and free from legacy processes and systems, Naked is pioneering a business model that aims to restore trust in how insurance works. Consumers benefit from lower costs as well as more control of - and convenience in - their insurance experience. They can get a final insurance quote for their home, its contents, their standalone items or their car in less than 90 seconds, and switch or pause their cover, all online, without speaking to a contact centre agent.
Phuthi Mahanyele-Dabengwa, South Africa CEO of Naspers, said:'South Africans are in general underinsured when it comes to short-term personal insurance. While this is often due to price, consumer distrust and complexity have led to a misunderstanding of insurance. Naked's offering is convenient, transparent and passes the cost savings from its innovative technology on to customers. It improves financial inclusion, in line with Naspers Foundry's objective of investing in technology businesses that have a positive impact on society.'Fabian Whate, Head of Naspers Foundry, said:'We're excited to support Naked in their journey of pioneering a new generation of insurance, giving consumers access to convenience, control and savings with its end-to-end digital processes.This fits in with our focus of backing purpose-driven technology businesses. Investing in Naked is consistent with the portfolio we've built to date and Naspers Foundry's healthy pipeline of potential future investments.'Alex Thomson, Co-founder of Naked, commented: 'Our ambition is to build insurance that people love by offering an experience that is affordable, convenient and transparent. We have come a long way since our launch in 2018 towards meeting these goals, including enabling customers to buy cover online in seconds, allowing them to claim and manage cover on our award-winning app, and passing on hugesavings through sustainably lower premiums.'
'But this is justthe start of our journey to reinvent insurance. We are excited to have an investor of Naspers Foundry's calibre onboard to work with us as we expand our team, continue to invest in the technology that puts customers in control, meet the insurance needs of a growing portion of the SA market and enter into international markets.'
Existing Naked investors, Yellowwoods and Hollard, also participated in the funding round, endorsing Naked's growth plans and its success in rebuilding insurance for social good.
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Naspers Limited published this content on 04 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 August 2021 08:05:03 UTC.
Naspers Limited is a global consumer Internet company. Through Prosus, the Company operates and invests globally in markets with long-term growth potential, building consumer Internet companies that empower people and enrich communities. The Companyâs segments include Food Delivery, Classifieds, Payments and Fintech, Edtech, Etail, Other ecommerce: Ventures, Media24 and Social and Internet platforms. Its portfolio of food-delivery businesses allows customers to order their favorite food online and via apps to be conveniently delivered wherever they are. Prosus holds an investment in Tencent, Chinaâs used Internet services platform. Media24 is a print and digital media group with interests in digital media and services, newspapers, magazines, e-commerce, book publishing and media logistics. Its group includes some of the local consumer Internet companies in around 100 countries, spanning the Americas to Asia, Europe to South Africa.