Pineapple, a South African InsurTech startup, has successfully concluded a groundbreaking funding round, securing a total investment of R400 million ($21.5M). The investment round marks a significant milestone as the largest insurtech fundraising effort on the African continent to date. Leading the investment were new backers Futuregrowth, Talent10, and MIC, alongside continued support from existing investors such as Old Mutual ESD, Lireas Holdings, ASISA ESD Fund, and E4E Africa.
This sizable investment comes on the heels of Pineapple’s robust growth and sustainable claims ratios, surpassing industry standards for a newer insurance portfolio. Pineapple’s co-founder and CEO, Marnus van Heerden, attributes the success of the funding round to their tech and AI-powered operating model, which enables the company’s mission to provide affordable and comprehensive insurance to all South Africans. Notably, Pineapple claims that their technology allows them to serve customers at only 20% of the cost incurred by traditional insurance providers, facilitating significant cost savings in insurance premiums for customers and contributing to accelerated growth.
Investors were drawn to Pineapple for several compelling reasons. The startup’s innovative approach to insurance, powered by technology and artificial intelligence, aligns seamlessly with the investment philosophy of Futuregrowth, one of the lead investors. Pineapple’s exceptional growth and customer-centric model are seen as a potent combination of technological prowess and deep market understanding. Amrish Narrandes, head of Futuregrowth Asset Management’s Private Equity/Venture Capital, emphasized the alignment of Pineapple’s mission with their investment philosophy. With a R100 million investment, they aim to support Pineapple in redefining the insurance landscape.
The co-founder of Pineapple, Ndabenhle Ngulube, highlights the company’s foundation on the principle of customer-centricity. The success of putting customers at the center of every decision has been a pivotal factor in attracting investor confidence. Pineapple’s ability to provide insurance services at a fraction of the cost of traditional providers and the resulting positive impact on premiums further solidifies its attractiveness to investors.
A Look at Pineapple:
Founded in 2018, Pineapple is a South African InsurTech startup that has garnered significant attention and accolades since its inception. Recognized both locally and internationally, the company has received awards such as the MTN Consumer App of the Year and the Stanford Startup Award. Notably, Pineapple is the first InsurTech to be accepted into Google’s Launchpad Accelerator Program.
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The startup entered the South African market in 2018 with a focus on addressing issues of insurance trust. Pineapple’s innovative approach involves underwriting insurance products through Old Mutual Insure, while Hannover-Re, Pineapple’s early innovation partner, continues to serve as a reinsurer and strategic partner. Pineapple has gained recognition as the best-rated insurance company, boasting an average score of 4.7/5, surpassing competitors with a 0.4-star lead. This success positions Pineapple as a trailblazer in showcasing the potential of South African talent, funding, leadership, and mentorship in establishing itself as a hub for globally scalable technology.
Pineapple insurance South Africa Pineapple insurance South Africa
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard