South African Insurtech Naked Secures $38M Series B2 to Expand AI-Driven Insurance Innovation
South African insurtech pioneer Naked has successfully raised $38 million (approximately R700 million) in a Series B2 funding round, marking a significant step in its mission to revolutionize the insurance industry through automation and AI. The funding was led by global impact investor BlueOrchard, with additional support from existing investors, including Hollard, Yellowwoods, the International Finance Corporation (IFC), and Germany’s DEG.
This latest investment will allow Naked to deepen its technological advancements, expand its market reach, and enhance advertising efforts to grow its customer base. It will also help meet regulatory capital requirements to support the company’s rapid growth trajectory.
The Series B2 round builds on the $17 million raised in February 2023 during Naked’s Series B round, bringing its total funding to over $69 million. The previous round, also led by IFC alongside Yellowwoods, Hollard, and DEG, laid the groundwork for the company’s continued expansion and innovation.
Founded in 2018 by actuaries Alex Thomson, Sumarié Greybe, and Ernest North, Naked has distinguished itself in the insurtech space with a fully digital platform powered by AI and automation. Through its mobile app, customers can secure final insurance quotes in under 90 seconds, purchase policies, submit claims, or even pause accident coverage—all without the need for lengthy phone calls or paperwork.
Naked’s “Naked Difference” business model sets it apart from traditional insurers. The company takes a fixed percentage of premiums to cover operational costs, while surplus funds from unclaimed premiums are directed to causes chosen by its customers. This innovative approach eliminates conflicts of interest in claims processing, fostering transparency and trust while ensuring that valid claims are handled promptly and fairly.
Naked has steadily expanded its offerings to include fully digital car and home insurance, allowing customers to manage their entire insurance journey online. With comprehensive coverage for cars, homes, contents, and standalone items, the platform has redefined customer convenience in the insurance sector.
This funding highlights the growing demand for digital transformation in insurance, with AI and automation driving efficiency, reducing costs, and improving customer experiences. Investors’ confidence in Naked underscores its potential to reshape the insurance landscape in South Africa and beyond.
Looking ahead, Naked plans to leverage this investment to broaden its product offerings, enhance financial inclusion, and expand access to insurance for underserved markets. By continuing to integrate cutting-edge technology, the company aims to strengthen financial resilience for its customers while contributing to the modernization of the insurance sector across the continent.
