DEG invests in South African online insurance platform
The German development finance institution is providing insurance platform Naked with $4 million in equity capital.
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German development finance institution DEG is providing South African online insurance platform Naked with $4 million in equity capital.
This new injection of capital will support the company’s growth by deepening its investment in automation and AI, product and market expansion, and enhancing advertising to attract and grow its customer base. DEG first invested in Naked in 2023. The total volume of the current round of financing is approximately $38 million. The investors also include global impact investor BlueOrchard and existing backers IFC, Yellowwoods and Hollard.
South Africa’s first entirely digital insurance platform offers private customers insurance policies for cars, buildings and other objects of value. Naked was launched in 2018 by actuaries Alex Thomson, Sumarié Greybe and Ernest North. Its AI-powered technology makes it easier for customers to gain access to insurance coverage as well as making it more affordable and transparent. Using a digital end-to-end platform, customers can manage everything via an app – from obtaining an offer, taking out and administering an insurance policy to submitting claims.
Monika Beck, a member of DEG’s management board, explained: “The improved access to insurance cover is an important engine for financial transformation and inclusion in South Africa. With Naked, we are investing in an up-and-coming company whose innovative business model is making it easier for many people to access affordable insurance cover. In this way, we are playing our part in helping technology-driven insurance services to penetrate the South African market and to generate economic growth.”
“This investment marks an exciting milestone as we continue to define a new category of insurance,” says Alex Thomson, co-founder of Naked. “It’s a strong vote of confidence from both our existing shareholders and our new investor, BlueOrchard. Their support validates the success of our business model and highlights the significant progress we’ve made in making insurance more accessible and convenient. Building off the base of a loyal community and unique technology platform, we are positioned for strong growth in the years ahead.”
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