Naked Secures $38M Series B2 Funding

South African insurtech company Naked has raised $38 million (R700 million) in its largest funding round to date. The Series B2 round, led by BlueOrchard, saw continued participation from Hollard, Yellowwoods, the International Finance Corporation (IFC), and Germany’s DEG. This marks a pivotal milestone for the digital-first insurer, underscoring investor confidence in its AI-powered approach to redefining insurance in South Africa.


A Journey of Strategic Growth

Since its inception in 2018, Naked has steadily attracted investment, with this latest funding building on earlier achievements:

  • R20 million seed funding in 2018
  • R160 million Series A in 2021

This consistent support reflects the company’s innovative edge and strong market positioning.


Naked’s Innovative Insurance Model

Naked’s fully digital platform offers a unique customer experience:

  • AI and automation: Customers can get quotes in under 90 seconds, buy coverage online, or pause accident insurance without paperwork or human interaction.
  • 100% online policies: Naked is South Africa’s only platform providing car, home, and single-item insurance policies entirely online.
  • Transparent pricing: The company takes a fixed percentage of premiums and donates unclaimed funds to customer-selected causes, addressing traditional conflicts of interest.

By leveraging cutting-edge technology, Naked delivers cost-efficiency, transparency, and accessibility, making insurance more attractive to underserved markets.


Addressing Gaps in South Africa’s Insurance Market

Despite having the highest insurance penetration in Africa, South Africa faces notable gaps:

  • 70% of vehicles are uninsured.
  • Life insurance adoption remains below 10%, excluding funeral cover.

Naked’s affordable and accessible offerings address these disparities, providing new solutions for individuals historically excluded from insurance markets.


The Naked Difference

Naked’s purpose-driven business model aligns with the global shift toward sustainability and innovation. By donating unclaimed funds, the company fosters:

  • Transparency and trust.
  • Economic equality by supporting community causes.
  • Sustainability, ensuring a positive societal impact.

Funding to Propel Expansion and Innovation

The $38 million will accelerate Naked’s growth in several key areas:

  1. Product diversification: Expanding its suite of offerings to address wider market needs.
  2. Regulatory compliance: Preparing for IFRS 17 standards and meeting heightened liquidity risk management expectations.
  3. Technology investment: Enhancing AI and automation capabilities to maintain its competitive edge.
  4. Market penetration: Boosting advertising efforts to capture a broader customer base.

BlueOrchard’s Investment in Financial Inclusion

BlueOrchard’s involvement reflects its focus on leveraging technology for financial inclusion. According to Richard Hardy, BlueOrchard’s private equity director for Africa:

“Naked’s use of technology to expand access to insurance aligns perfectly with our InsuResilience Investment Fund strategy.”


Future Expansion Opportunities

While Naked is currently focused on South Africa, its scalable, AI-driven platform positions it for potential growth in other African markets, such as East Africa, where insurance penetration is significantly lower. This innovative model could serve as a blueprint for transforming underdeveloped insurance sectors across the continent.


Shaping the Future of Insurance

Naked’s co-founder Alex Thomson emphasized the significance of this funding:

“This investment marks a significant milestone as we continue to define a new category of insurance. It’s a strong vote of confidence…in making insurance more accessible.”

As Naked scales, it is well-positioned to lead South Africa’s insurance sector toward a more transparent, inclusive, and sustainable future while setting a precedent for regional innovation.


Naked’s success demonstrates how combining technology with a mission-driven approach can transform traditional industries, fostering economic growth and resilience in underserved markets.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top