South African insurtech startup Naked has secured $38 million (about R700 million) in a Series B2 funding round, the largest insurtech investment ever recorded on the African continent. The deal, announced in January 2025, underscores growing global investor confidence in South Africa’s homegrown technology sector.
The fully digital insurer uses artificial intelligence to deliver car, home and single-item insurance quotes in as little as 90 seconds, according to Disrupt Africa. Naked says it is the only South African platform selling 100% of its car, home and single-item policies online.
A Round Backed by Global Investors
The Series B2 round was led by global impact investor BlueOrchard. Backing also came from a roster of established financial players, including South African insurer Hollard, investment group Yellowwoods, the International Finance Corporation (IFC) and Germany’s development finance institution DEG.
The breadth of support signals that international development and impact funders see scope for digital insurance to broaden access in the South African market, as reported by FinTech Global.
Built by Actuaries, Powered by AI
Naked was founded in 2018 by three actuaries, Alex Thomson, Sumarie Greybe and Ernest North. The trio set out to strip cost and friction from the traditional insurance experience by building a platform that runs entirely online.
At the heart of the offering is AI-driven automation. The technology powers the company’s signature 90-second quote and underpins its push to handle policies digitally from start to finish. With the new capital, Naked says it is doubling down on automation and AI to support its next phase of growth.
A Different Model for Premiums
Naked’s business model also sets it apart. The company takes a fixed percentage of premiums rather than profiting from unpaid claims, and donates surplus unclaimed funds to causes chosen by its customers.
That structure is designed to remove the conflict of interest that can exist when an insurer benefits from declining claims, aligning the company’s interests more closely with those of its policyholders.
For South Africa’s technology and financial services sectors, the record-setting round is a notable milestone. It places a Cape Town-built business at the forefront of African insurtech and demonstrates that locally developed, AI-powered platforms can attract significant international capital.
With fresh funding secured and a clear focus on automation, Naked is positioned to accelerate its expansion while continuing to offer a fully digital alternative to traditional insurance.
Photo: disruptafrica.com
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