South African InsurTech Naked secures $38m to drive AI-powered growth

South African InsurTech Naked, known for its AI-powered and fully digital insurance platform, has raised $38m in a recent financing round.

South African InsurTech Naked, known for its AI-powered and fully digital insurance platform, has raised $38m in a recent financing round.

The tranche included a $4m investment from Deutsche Investitions- und Entwicklungsgesellschaft mbH (DEG), alongside contributions from other key investors such as impact investor BlueOrchard, the International Finance Corporation (IFC), and existing backers Yellowwoods and Hollard, according to Startbase.

Naked offers a fully digital insurance platform that provides private customers with policies for cars, buildings, and individual items.

The platform stands out for its AI-driven operations, allowing customers to manage all insurance processes through an intuitive app—from obtaining quotes to filing claims.

A key element of Naked’s business model is its focus on transparency. The company donates any surplus funds from insurance premiums to charity, retaining only a fixed portion to cover claims calculations.

This innovative model helps minimise conflicts of interest and ensures fair and swift processing of legitimate claims.

With the fresh funding, Naked plans to further enhance its AI technology, expand its product offerings, and explore new market opportunities. DEG views this investment as a step towards fostering financial inclusion in South Africa by improving access to affordable insurance services and driving digitalisation in the region.

Monika Beck, member of DEG’s management board, emphasised the transformative role of such initiatives, stating that “Improved access to insurance is an important driver for economic transformation.”

Co-founder Alex Thomson expressed confidence in the company’s direction, saying, “The participation of investors such as BlueOrchard and DEG confirms the strength of our business model and technology. With this support, we are well positioned to grow further in the coming years.”

Naked’s efforts align with DEG’s commitment to leveraging modern technologies to unlock economic potential and support growth in partner countries.

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