Founded in 2016 in South Africa, Root has emerged as a frontrunner in the insurance technology sector, offering a versatile low-code platform tailored to drive the development of cutting-edge digital insurance solutions. These solutions are specifically designed for seamless distribution across direct channels, affinity partnerships, and embedded offerings, all at a scale that befits the modern era. Notably, Root had secured its initial round of external funding in 2021, with participation from Invenfin, although precise investment figures from that round remain undisclosed.

Louw Hopley, Co-Founder at Root, expressed his enthusiasm regarding the sustained collaboration with Invenfin, stating, “We have forged a strong and trusting partnership with Invenfin since their initial investment in our venture two years ago. I am delighted that they recognise the further potential in our growth trajectory and are keen to continue supporting our journey as we embark on international expansion.”

Hopley continued, “Our strategic focus involves a robust expansion in the UK, complemented by our efforts to make significant inroads into the broader European market. The injection of growth capital from Invenfin positions us favourably to achieve these objectives. At present, insurers are increasingly recognising the pivotal role of innovative partner insurance channels, particularly embedded insurance. They seek to invest in the dependable, API-centric technology required to navigate these markets swiftly and confidently. We are genuinely excited about the prospects for our business in the coming years.”

Theo van den Berg, Investment Executive at Invenfin, praised Root’s vision, stating, “Root is a compelling illustration of the type of enterprise that Invenfin actively seeks to invest in. They boast a dynamic team dedicated to building a world-class product that has already garnered significant success in their home market of South Africa, and they exhibit clear global potential.”

Van den Berg added, “We wholeheartedly embrace Root’s belief that the future of insurance hinges on embedding it seamlessly into various contexts, ultimately enabling companies to offer more accessible, contextual, and affordable insurance solutions to consumers. Invenfin is thrilled to reaffirm its commitment to Root, building upon our initial investment in 2021, as they chart their accelerated course in the UK and beyond.”

Root Platform’s recent infusion of capital from Invenfin undoubtedly positions the company for an exciting phase of growth and innovation, as it continues to shape the future of the insurance technology landscape on a global scale.

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Naked’s AI-driven business model has transformed insurance, making it more convenient, affordable, and transparent for customers. Naked’s end-to-end digital platform allows customers to manage their entire insurance experience online, from getting a quote and buying insurance to managing their policy and making claims, without needing to speak to a contact center agent.

Naked charges a fixed percentage of customers’ premiums, in contrast to the traditional model where insurers’ profits depend on how much they pay in claims. The Naked Difference means that in years when claims are lower than expected, the surplus goes to communities and good causes chosen by customers, removing the conflict of interest at the heart of traditional insurance.

Since launching in 2018, Naked has exceeded its growth targets every year and has built a loyal customer base. The insurtech will use the funding to continue investing in technology that puts customers in control, grow its team, and expand into new markets.

Adamou Labara, IFC Country Manager for South Africa, said that “IFC’s investment in Naked will help increase the penetration of tech-driven insurance in the country and contribute to job creation and economic growth.” Ingo Schulz, Vice President at DEG InsurTech Global Markets, added that “Naked is well positioned to drive digital transformation and inclusion in the South African insurance industry because of its unique technology and innovative business model.”

The Series B funding round signals strong investor confidence in Naked’s management, technology, and positioning, as well as in the significant opportunity to use AI and digital experiences to grow Africa’s insurance market in the years ahead.

The post <strong>Insurtech Naked Raises $17 Million in Series B Funding Led by IFC to Expand AI-Driven Business Model in South Africa</strong> appeared first on Reframed.