Pineapple, a South African insurtech startup, has announced the close of a Series B funding round of ZAR400 million (US$21.3 million), led by new investors Futuregrowth, Talent10, and MIC.
Additional investment support has been provided to the business by its current investors, which include Old Mutual ESD, Lireas Holdings, ASISA ESD Fund, and E4E Africa.
Since its founding in 2017, Pineapple has enabled the business to deliver services to clients at a 20% discount from traditional insurance providers. This helps them to further accelerate expansion by passing on these cost savings to clients in the form of lower insurance premiums.
Co-founder and CEO of Pineapple, Marnus van Heerden, said, “This funding round stands as a testament to our tech and AI-powered operating model, enabling our mission to offer affordable and comprehensive insurance to all South Africans.”
Amrish Narrandes, head of Futuregrowth Asset Management’s private equity and venture capital, said Pineapple’s innovative approach to insurance aligned seamlessly with his company’s investment philosophy.
“Their exceptional growth and customer-centric model exemplify a potent combination of technology and market understanding. With our ZAR100 million investment, we are thrilled to spearhead this round, fueling Pineapple’s journey in redefining the insurance landscape.” Narrandes said.
Successful completion of the funding round can be attributed to growth and claims ratios that are sustainable and much surpass market norms for an up-and-coming insurance portfolio.
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