(Ecofin Agency) - Thanks to backing from existing shareholders Hollard and Yellowwoods, but also new investors DEG and the International Finance Corporation, the digital insurance platform Naked wants to expand its offerings in South Africa, the largest insurance market in Africa.
South African comprehensive insurance platform Naked recently secured US$17 million in Series B funding. The funding is provided by the International Finance Corporation (IFC), the German Development Finance Institution (DEG), and two existing shareholders, Hollard, and Yellowwoods.
"We are excited to bring new investors on board in this funding round, as part of accelerating our growth plans. This investment [...]will enable us to grow our team, continue to invest in technology that puts customers in control, and expand into new markets," said Alex Thomson, co-founder of Naked.
In a project note published in the third quarter of 2022, IFC, which led this investment, was already considering making a US$10 million equity investment in Naked. The deal was eventually approved by the institution's board of directors.
The funding secured is expected to help expand access to auto, home, and other insurance products in South Africa. The country has the largest and most mature insurance market in Africa, but many insurance products, apart from life and funeral insurance, are not yet sufficiently marketed.
Let's note that in August 2021, Hollard and Yellowwoods participated in Naked's US$11 million funding round led by insurance firm Naspers.