South African based insurtech start-up, Naked Insurance has secured another R30-million ($2.2 million) from private investment group, Yellowwoods and insurance company, Hollard. The start-up plans to grow its team, expand customer base and expand into new short-term insurance product categories.
The startup was founded by Alex Thomson, Sumarié Greybe and Ernest North in October 2016 and provides artificial intelligence-driven car insurance.
The start-up in a statement said its investors committed the additional funding after the startup recorded a strong first six months of trading, after launching its first product in April, following about a year and a half in development.
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The start-up said customer acquisition and retention rates had exceeded the company’s expectations. The latest investment fund follows an investment of R20-million that the startup received from Yellowwoods and Hollard in April.
While speaking to Ventureburn, Ernest North said the startup currently has 14 staff members and aims to move to 20 staff, with the addition of new data science positions.
Also, Yellowwoods head of insurance Nic Kohler said Naked helps to deliver an “improved customer experience” and enhances fairness for policyholders.
“Its strong performance over the past six months validates its business model, giving us confidence in its ability to drive further growth and innovation in the months to come,” he said.
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