Naked Receives USD 4 Million Investment from DEG to Expand South Africa’s Digital Insurance Landscape

Naked Receives USD 4 Million Investment from DEG to Expand South Africa’s Digital Insurance Landscape

(IN BRIEF) Naked, South Africa’s fully digital insurance platform, has secured a USD 4 million equity investment from DEG to further its growth by enhancing automation, expanding its product offerings, and attracting more customers through targeted advertising. This is part of a larger financing round totaling USD 38 million, with additional support from investors like BlueOrchard, IFC, Yellowwoods, and Hollard. Naked’s AI-driven technology allows customers to manage policies seamlessly via an app, and its business model stands out by donating surplus funds from unclaimed premiums to customer-chosen causes. DEG’s investment supports financial inclusion in South Africa by promoting access to affordable insurance. Naked’s co-founder, Alex Thomson, emphasized the positive momentum the investment brings for the company’s future growth.

(PRESS RELEASE) COLOGNE, 23-Jan-2025 — /EuropaWire/ — Naked, South Africa’s first fully digital insurance platform, has received a significant investment of USD 4 million in equity capital from DEG. This funding will aid the company in accelerating its growth by enhancing its automation and AI capabilities, expanding its product offerings and market reach, and boosting its advertising efforts to attract more customers. DEG’s initial investment in Naked was made in 2023, and this funding is part of a larger financing round, totaling around USD 38 million. Other key investors include global impact investor BlueOrchard and existing backers such as IFC, Yellowwoods, and Hollard.

AI-Driven Insurance for Broader Access and Affordability

Launched in 2018, Naked is revolutionizing the South African insurance market with its AI-driven technology, which allows customers to easily access affordable and transparent coverage. The platform offers a range of insurance products, including car, building, and personal property coverage. Customers can manage their policies entirely through a digital app—from obtaining quotes to managing claims—making the entire process seamless and user-friendly.

What truly distinguishes Naked is its innovative business model. Rather than following the traditional profit-driven approach, the company takes a fixed percentage of the premiums and donates any surplus from unclaimed funds to causes selected by its customers, such as local communities and charitable organizations. This model eliminates conflicts of interest in claims processing, promoting transparency and fostering trust by ensuring that valid claims are settled fairly.

Driving Financial Inclusion and Economic Growth in South Africa

Monika Beck, a member of DEG’s Management Board, emphasized the importance of Naked’s role in enhancing financial inclusion in South Africa: “Naked is helping drive financial transformation by improving access to affordable insurance. With its innovative model, the company is making insurance more accessible for many people, and through our investment, we are supporting technology-driven solutions that will spur economic growth in the region.”

Co-founder Alex Thomson also shared his excitement about the investment: “This funding is a significant vote of confidence in our business and our mission. With the support of both our existing investors and BlueOrchard, we are well-positioned to continue growing and defining a new category of insurance. Our loyal customer base and unique technology platform will enable us to achieve strong growth in the coming years.”

As a leading European development finance institution, DEG continues to support digitalization and technological advancements in its partner countries, with a particular focus on InsureTech companies like Naked, which are utilizing digital innovation to reshape the insurance sector.

Media Contact:

DEG Press Office
Anja Strautz
+49 221 4986 1474
+49 221 4986 1843
presse@deginvest.de

SOURCE: DEG