Naspers has made a significant investment in local AI-driven insurtech firm Naked Insurance, with the latter leading the latest round of funding through its early-stage incubator vehicle Naspers Foundry. The R160 million ($11 million) investment is Naspers Foundry’s second insurtech investment in as many weeks, as well as its largest in this industry to date.

“Our ambition is to build insurance that people love by offering an experience that is affordable, convenient and transparent. We have come a long way since our launch in 2018 towards meeting these goals, including enabling customers to buy cover online in seconds, allowing them to claim and manage cover on our award-winning app, and passing on huge savings through sustainably lower premiums,” said Alex Thomson, co-founder of the startup. 

“But this is just the start of our journey to reinvent insurance. We are excited to have an investor of Naspers Foundry’s calibre onboard to work with us as we expand our team, continue to invest in the technology that puts customers in control, meet the insurance needs of a growing portion of the SA market and enter into international markets,” Thomson added. 

This latest investment is a watershed moment in the company’s history, as well as confirmation of how it has worked thus far.

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It also appears that the Naked Insurance team and range of services will continue to expand by virtue of this investment.

Why Naspers Invested

“South Africans are in general underinsured when it comes to short-term personal insurance. While this is often due to price, consumer distrust and complexity have led to a misunderstanding of insurance. Naked’s offering is convenient, transparent and passes the cost savings from its innovative technology on to customers. It improves financial inclusion, in line with Naspers Foundry’s objective of investing in technology businesses that have a positive impact on society,” noted Phuthi Mahanyele-Dabengwa, South Africa CEO of Naspers, of the motivation behind the investment.

This is Naspers Foundry’s second investment in an insurtech startup. The venture capital fund recently invested $2.3m in short term insurance startup, Ctrl.

Naspers is one of the leading technology investors in South Africa, and it is devoted to growing its internet and ecommerce businesses in the country. Takealot, Mr D Food, Superbalist, OLX, Autotrader, Property24, and PayU, as well as Media24, South Africa’s largest print and digital media company, are among them.

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Through Naspers Foundry, Naspers is also focusing on boosting South Africa’s domestic tech economy. This R1.4 billion fund invests in early-stage technological firms that aim to address major societal issues.

Naspers Labs, a development programme that gives young people with the knowledge and skills to pursue tech careers, was started in 2019 to help alleviate youth unemployment in underprivileged places.

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A Look At What The Startup Does

Founded in 2016 by actuaries Alex Thomson, Sumarie Greybe and Ernest North, the Naked Insurance platform uses AI and automation to provide a digital-first experience for South Africans looking for, activating, and processing automobile and household insurance.

Naspers insurtech Naked Insurance Naspers insurtech Naked Insurance

South African Startups Are Invited To Pitch To Naspers Foundry’s $100 Million Fund 

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