PINEAPPLE said today that it has raised R80 million ($5.3m) in a Series A round to disrupt the car insurance business. Lireas Holdings, the ASISA ESD Fund, E4E, Vunani Capital, and the Old Mutual Enterprise & Supplier Development Fund are among the new funding’s backers.
“Pineapple is on a journey to improve the trust between the insurer and insured, by providing superior customer experience backed by cutting edge technology and an innovative model,” says Pineapple co-founder Marnus van Heerden. “We operate off a fixed fee and unused premiums are returned to members”.
The company said the investment would be used to expand the SA business as well as establish international collaborations, such as the one with Travelers Insurance in the United States.
Why The Investors Invested
The success of the investment, according to Pineapple’s co-founder Ndabenhle Ngulube, is due to the company’s remarkable expansion this year.
“We did not expect to grow by 200% in the first 6 months of this year, but it goes to show that customer insurance purchase behaviour is starting to shift online and that customers are becoming more astute as to the online ratings of insurance providers and not settling for second best” with respect to customer experience,” he said.
Newly launched venture capital fund, Entrepreneurs For Entrepreneurs Africa (E4E Africa), which recently secured R135 million ($8.2m) in funding, invests in innovative startups in South Africa. The fund, which was backed by a founding investment from the SA SME Fund, aims to support business models that bring innovative, agile solutions to critical sectors of the South African economy, including the fintech sector, healthcare and the sustainable agriculture value chain, as well as those with the capacity to scale inside and outside of South Africa.
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“When asked what is next for Pineapple, co-founder Matthew Smith stated “We have become so obsessed with our customers. We have a long list of features that we are building to continue to make the offering and experience fun, understandable and useful. Look out for a “community orientated” feature dropping in August that will change the way people feel about insurance!” Bakang Komanyane at E4E stated as the reason why they chose Pineapple for investment.
A Look At What The Startup Does
Pineapple is a South African InsurTech startup that has captured the attention of a large number of people. Since its launch in 2018, the company has received multiple awards both locally and internationally, including the MTN Consumer App of the Year, the Stanford Startup Award, and being the first Insurtech to be accepted into Google’s Launchpad Accelerator Program.
Pineapple entered the South African market in mid-2018 with the purpose of addressing the problem of insurance trust.
Read also:The Role Mobile Technology Plays in Africa
Old Mutual Insure underwrites the insurance products, and Hannover-Re, Pineapple’s early innovation partner, remains a reinsurer and strategic partner.
Pineapple has recently made headlines for being the best-rated insurance company, with an average score of 4.7/5, 0.4 stars higher than their next competitor’s 4.4/5.
Pineapple is setting a precedent for what can be accomplished when young South African talent is given access to funding, solid leadership, and mentorship, potentially establishing a trend for South Africa to become a centre for producing globally scalable technology.
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Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer