Naked receives R160 million injection

Naked has raised R160 million in a funding round led by Naspers through its tech investment vehicle Naspers Foundry.

Naspers Foundry invested R120 million in Naked. The insurance technology firm’s existing investors, Yellowwoods and Hollard, also participated in the funding round.

Naked is an insurance technology company that uses machine learning technology to offer clients a new, fully digital way to insure their cars, homes, and valuables.

It promises the ability to get a final insurance quote for your home, its contents, standalone items, or car in less than 90 seconds.

You can also switch or pause your cover online without speaking to a contact centre agent.

The transaction is Naspers Foundry’s second insurtech investment in two weeks and its biggest investment to date, the first being a R34 million investment in Ctrl announced on 21 July.

Naspers said its investment in Naked is part of its R1.4 billion commitment to grow South Africa’s early-stage tech ecosystem through Naspers Foundry.

“South Africans are in general underinsured when it comes to short-term personal insurance,” said Naspers South Africa CEO Phuthi Mahanyele-Dabengwa.

“While this is often due to price, consumer distrust and complexity have led to a misunderstanding of insurance.”

Alex Thomson, the co-founder of Naked, said that their 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,” Thomson said.

“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.”

Naked Insurance team photo — 4 August 2021

Now read: Money flooding into South Africa’s fintech scene

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Naked receives R160 million injection