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Naked, a South African-based digital insurance platform, has announced the successful closure of its $38 million Series B2 funding round. This strategic investment is a confirmation of the growing confidence in AI-driven insurance solutions while further positioning Naked to revolutionize the insurance industry through technological innovation.
Company Overview
Founded in 2018 by actuaries Alex Thomson, Sumarié Greybe, and Ernest North, Naked has quickly become a leader in the insurtech space. The company provides a fully digital insurance platform that uses artificial intelligence and automation to improve customer experience and simplify insurance processes. Customers can get final insurance quotes in under 90 seconds, buy coverage online, file claims, or even pause accident coverage without ever having to make a phone call through its mobile app.
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Funding Details
The recent funding round of Series B2 to the tune of $38 million was led by BlueOrchard, an impact investment manager operating globally to spur inclusive and sustainable growth. Existing investors Hollard, Yellowwoods, International Finance Corporation (IFC), and DEG of Germany’s development finance institution increased their participation in this round, demonstrating high investor confidence in Naked’s mission and technological capabilities.
This is the latest capital injection that will build on previous success when Naked raised $17 million in February 2023 in a Series B round. That one was led by the IFC with Yellowwoods, Hollard, and DEG on board. It brought the total funding at that time to $31.6 million, so the company continued growing and innovating to now reach the present Series B2 round.
Strategic Objectives
The infusion of capital is going to accelerate Naked’s strategic initiatives, which include:
- Advancement in AI and Automation: Naked plans to deepen its investment in automation and AI to further enhance its digital platform, aiming to provide more personalized and efficient services to its customers.
- It is planning to expand its range of insurance products and reach new markets by offering its services in order to expand its digital insurance business.
- Improving Marketing and Acquiring New Customers: The funds will be utilized for improving advertisement and customer acquisition activities for Naked, so as to expand the customer base and enhance brand recognition.
- Regulatory Compliance and Capital Requirements: The funding will also help address the regulatory capital requirements associated with the company’s rapid growth. This will guarantee compliance and sound financials.
Naked differs itself with a “Naked Difference” business model. Unlike regular insurers, Naked takes a flat percentage of the premiums to keep the company running. Any surplus remaining from unclaimed funds is dedicated to causes of choice for its customers. This system eliminates conflicts of interest in claim processing, therefore creating trust and ensuring that genuine claims are settled promptly and fairly.
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Market Impact and Future Prospects
Naked’s innovation approach and dedication to utilizing AI and automation technologies have established the company as one of the key players in the insurtech market. The considerable investment from high-profile international investors not only justifies Naked’s business model but also underscores the increasing demand for digital transformation in the insurance industry.
In other words, this funding will well position Naked towards a faster-growing path as it avails cutting-edge insurance solutions toward evolving consumer needs. The efficiency of operations and customer-centric services are supposed to redefine the experience of acquiring an insurance product.
Summary
South African-based insurtech Naked has been successful in its Series B2 funding round as it raised a total of $38 million approximately R700 million. Led by global impact investor BlueOrchard, the round saw greater participation from current investors, including Hollard, Yellowwoods, the International Finance Corporation (IFC) and German development finance institution DEG. Capital infusion will help Naked further invest in automation and AI, diversify its product offerings, market access, and enhance efforts at advertising to grow its customers.
