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South Africa’s Naked Raises USD 38 M In Landmark Insurtech Funding Round
South Africa’s Naked Raises USD 38 M In Landmark Insurtech Funding Round

South African insurtech startup Naked has secured USD 38 M in a Series B extension funding round, marking the largest investment in Africa’s insurtech sector to date. The round was led by global impact investor BlueOrchard, with participation from existing backers Hollard, Yellowwoods, the IFC, and DEG.

The funding will fuel Naked’s expansion, enhance its AI-driven platform, and meet regulatory capital requirements. Founded in 2018 by former Ernst & Young executives and actuaries Alex Thomson, Sumarié Greybe, and Ernest North, Naked stands out with its fully digital insurance offerings for cars, homes, and single items. Its platform provides final quotes in under 90 seconds, and customers can manage policies entirely via an app, eliminating the need for human interaction.

Naked’s innovative business model, the “Naked Difference,” reinvests surplus unclaimed premiums into customer-selected charities, removing traditional insurers’ profit-driven incentive to deny claims. Naked previously announced a USD 17 Series B in 2023 led by the IFC to drive its growth.

With smartphone penetration growing across Africa, Naked is poised to disrupt traditional insurance markets. The funding will support its expansion, product development, and marketing efforts, while addressing regulatory challenges tied to scaling operations.