South African digital insurance provider Pineapple has announced the conclusion of a R400 million funding round – the largest insuretech fundraiser ever in Africa.
The investment was led by new investors Futuregrowth, Talent10 and MIC, whilst existing investors Old Mutual ESD, Lireas Holdings, ASISA ESD Fund and E4E Africa also gave additional funding.
Pineapple said that the new funding came off the back of robust growth and sustainable claims ratios that exceed industry standards for a newer insurance portfolio.
“This funding round stands as a testament to our tech and AI-powered operating model, enabling our mission to offer affordable and comprehensive insurance to all South Africans,” Pineapple co-founder and CEO Marnus van Heerden said.
The group’s technology and AI-powered operating model allow it to service customers at 20% of the cost of traditional insurance providers, enabling them to pass this cost saving in insurance premium savings to customers.
“Their (Pineapple’s) exceptional growth and customer-centric model exemplify a potent combination of technology and market understanding,” Amrish Narrandes, Head of Futuregrowth Asset Management’s Private Equity/Venture Capital, said.
“With our R100 million investment, we are thrilled to spearhead this round, fueling Pineapple’s journey in redefining the insurance landscape.”
Tens of thousands of customers have insured their vehicles with Pineapple, with nearly 50% of customers being first-time insurance buyers.
The company offers car insurance via its website and app in partnership with Old Mutual Insurance, allowing customers to get a full insurance quote and buy their policy in under two minutes.