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South African Insurtech, Naked has raised R160 million ($11m) in a funding round led by Naspers Foundry. Yellowwoods and Hollard who are existing investors in Naked, also participated in this funding round. The amount raised will be focused on Naked’s team expansion, investment in its technology to put customers in control, meeting the insurance needs of a growing portion of the South African market, and expanding into international markets.
The investment is Naspers Foundry’s second insurtech investment following its investment in Ctrl.
“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,” said Phuthi Mahanyele-Dabengwa, South Africa CEO of Naspers.
Alex Thompson, Co-founder of Naked said: “Our ambition is to build insurance that people love by offering an experience that is affordable, convenient and transparent. We have come a long way since our launch in 2018 towards meeting these goals, including enabling customers to buy cover online in seconds, allowing them to claim and manage cover on our award-winning app and passing on huge savings through sustainably lower premiums.”

Naked is an insurtech platform based in South Africa with the mission to build instant, honest and affordable insurance that people would love. Users are given total control over their insurance through Naked’s technology, which can also be done 24/7 all without chatting to a call centre.
Naked runs its insurance model in a way totally different from the traditional insurance model. The insurtech uses the Naked Difference, with a flat fee taken upfront to cover running costs and profit. The rest of the money goes towards claims, with leftover premiums at the end of the year paid to causes users have chosen, rather than Naked’s bottom line.