CompariSure - Afrikan Heroes

HAVAÍC Leads $980k Pre-Series A Funding Round In South African Fintech CompariSure

January 27, 2022

CompariSure, a financial services firm that distributes financial services products via its unique chatbot technology, has raised R15 million ($980k) in pre-Series A fundraising from HAVAIC and 4Di, with HAVAIC heading the round.

“This investment round is an important milestone for us and will allow us to continue reshaping the way South Africans interact online. The HAVAÍC team brings a wealth of expertise and experience to the table, and we are very excited to have them joining as a shareholder and board member. We are also incredibly grateful for the ongoing support from our earliest backers 4Di Capital, whose follow-on investment signals a strong, reaffirmed belief in what we are building at CompariSure,” Matt Kloos, CompariSure co-founder and CFO, said.

The funds will be used to help CompariSure expand its footprint in the South African market.

Matt Kloos, CompariSure co-founder and CFO

Why The Investors Invested

The startup has garnered considerable traction since it was founded. It has handled over 120 million messages and sold over 50 000 insurance via chat since 2017.

“HAVAÍC is excited to have led the R15m pre-Series A investment round in CompariSure. Headed up by a strong team of founders, with a product that’s not only achieving significantly higher conversion rates but also more than halving the cost of acquisition, their offering is a key value add to companies selling a product. Furthermore, with the company already demonstrating strong traction in the local insurance market and with significant opportunities to grow both vertically and horizontally, we are excited for what the future holds for CompariSure and to be a part of their journey,” Kiara Suttner-Tromp, principal at HAVAÍC, said.

“CompariSure has shown excellent growth since our initial investment in 2019,” comments, “so making the follow-on investment decision was an easy one. Not only has CompariSure’s technology matured significantly over recent years, but the company has impressed us by continuing to attract top talent to its ranks, most crucially in senior leadership positions. At 4Di we look to back local entrepreneurs building new solutions with global relevance, and in CompariSure we see a team with a vision and technology to achieve just that,” Anton van Vlaanderen, partner at 4Di Capital, said.

CompariSure’s most recent funding round, which took place in May 2020, was headed by UW Ventures in collaboration with Allan Gray. 4Di Capital made its first investment in August of this year.

A Look At What CompariSure Does

CompariSure, which was formed in November 2017 by CEO Jonathan Elcock and CFO Matt Kloos, uses its unique chatbot technology to distribute financial services goods through its chatbot-driven marketplace, which uses platforms like Moya, Facebook Messenger, and WhatsApp. CompariSure performs the role of a digital broker.

According to the company, it is looking to expand outside of financial services, and has already released services to help with call center automation, sales force management, and market research.

CompariSure recently launched a job creation and skills development program in Strand, Khayelitsha, Hammanskraal, Daveyton, and Tembisa, allowing anybody with a smartphone to drive traffic to the company’s chatbot marketplace and earn referral commissions.

“Over 95% of our users are buying a financial product online for the first time in their lives, a true game-changer in terms of giving every South African access to quality financial services products,” comments CompariSure founder and CEO Jonathan Elcock.

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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

South Africa’s Insurtech Startup CompariSure Secures Investment From Local VC

May 18, 2020

CompariSure’s co-founder, Jonathan Elcock

South Africa-based insurtech startup CompariSure has announced today that it has secured venture capital (VC) funding from SA Umkhathi Wethu Ventures in partnership with Allan Gray. The deal comes off the back of CompariSure’s first external investment deal concluded in August last year with SA VC company 4Di Capital (which was not announced to the media at the time).

“This growth capital funding has given us significant runway and will allow us to explore new strategic initiatives, such as new product and industry use-cases for our chatbot, as well as opportunities outside of SA,” said co-founder Jonathan Elcock.

Here Is What You Need To Know

The details of the latest investment, as well as that of the 4Di Capital investment, were not disclosed.
UW Ventures will support CompariSure with its scaling ambitions, including into international markets.
Edgar Loxton, a director at Allan Gray, and 4Di Capital partner Anton Van Vlaanderen will sit on the CompariSure board.
In a statement today, co-founder Matthew Kloos explained that at the time that the original deal was concluded in August last year, 4Di Capital was eager for the insurtech to find another institutional investor to diversify the shareholder base, which is how Umkhathi Wethu (UW) Ventures and Allan Gray came on board.

“In combining 4Di’s deep understanding of insurtech with Allan Gray’s extensive financial services expertise and Ventures’ strategic and business support, we feel our investor base could neither be stronger nor more experienced,” commented Kloos.

Read also: Why More South African Startups Have Raised Funds This Year

A Look At What Startup CompariSure Does

CompariSure was founded in 2017 by Jonathan Elcock (a former manager at insurance provider MiWay according to his LinkedIn profile. He was joined subsequently by co-founder Matthew Kloos.
The startup distributes financial services products via its proprietary chatbot technology that leverages platforms like Facebook Messenger and WhatsApp.
CompariSure said it had recently begun licensing out its chatbot technology to insurance providers looking to enhance their own digital capabilities.
The startup has worked with some of South Africa’s top insurance providers, including the likes of Sanlam, Old Mutual, and Momentum Metropolitan.
Elcock said in the same statement, that over 70% of the startup’s sales are concluded without any human engagement, at all hours of the day and night.
Without revealing the figures, he said the startup had seen “record volumes” through the challenging and unprecedented Covid-19 pandemic.
The startup however claims that over 250 000 South Africans from all walks of life have interacted with its chatbot via its online platform.