Naspers, through its early-stage tech investment vehicle Naspers Foundry, has announced a R120 million ($8.3 million) investment in Naked, an artificial intelligence (AI)-driven insurtech company that offers a fully digital way for consumers to insure their cars, homes, and valuables.
The transaction is Naspers Foundry’s second insurtech investment in two weeks and its biggest investment to date.
The investment is part of Naspers’s R1.4 billion commitment to grow South Africa’s early-stage tech ecosystem through Naspers Foundry, it said.
Co-founded by actuaries Alex Thomson, Sumarie Greybe, and Ernest North, Naked uses AI and automation to create a digital insurance experience. Consumers benefit from lower costs as well as more control of – and convenience in – their insurance experience, Naspers Foundry said.
“They can get a final insurance quote for their home, its contents, their standalone items or their car in less than 90 seconds, and switch or pause their cover, all online, without speaking to a contact centre agent.”
Phuthi Mahanyele-Dabengwa, South Africa CEO of Naspers, said: “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.”
Existing Naked investors, Yellowwoods and Hollard, also participated in the funding round.