Naked Raises $38 Million to Drive Digital Insurance Innovation

Alex Thomson, Naked CEO

South African insurtech startup Naked has raised R700 million (~USD38 million) in a Series B funding round to fuel its growth and innovation. Existing investors, including Hollard and the International Finance Corporation, were joined by global impact investment firm BlueOrchard, marking its first contribution to the company.

Founded in 2018 by actuaries Alex Thomson, Sumarié Greybe, and Ernest North, Naked offers a fully digital insurance platform powered by automation, artificial intelligence, and machine learning. Customers can purchase car, home, and single-item policies or make claims entirely online without human intervention.

The funding will support regulatory capital requirements linked to the company’s rapid growth and its "cell captive" setup, where Hollard underwrites policies, while Naked provides a buffer for extreme loss scenarios. Additional investments will enhance AI capabilities, expand products and markets, and boost customer acquisition efforts.

Source: Duncan McLeod / TechCentral