04
August
2021
|
10:00
Europe/Amsterdam

Naspers Foundry leads R160 million (US$11 million) Series A investment in insurtech company Naked

  • Naked is South Africa’s first fully digital insurance platform offering comprehensive and instant cover for cars, homes, contents, and standalone items
  • New innovative business model aims to make insurance more accessible and restore trust in how insurance works
  • Naspers invests R120 million (US$8.3m) with the balance of the round funded by existing investors
  • Naspers Foundry’s 2nd insurtech investment, and its largest investment to date

Naspers, through its early-stage tech investment vehicle Naspers Foundry, announced a R120 million (US$8.3m) investment in Naked, the artificial intelligence (AI)-driven insurtech company that offers a new, 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.

Co-founded by actuaries Alex Thomson, Sumarie Greybe, and Ernest North, Naked uses AI and automation to create a new type of insurance experience. Built from scratch and free from legacy processes and systems, Naked is pioneering a business model that aims to restore trust in how insurance works. Consumers benefit from lower costs as well as more control of – and convenience in – their insurance experience. 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.”

Fabian Whate, Head of Naspers Foundry, said: We’re excited to support Naked in their journey of pioneering a new generation of insurance, giving consumers access to convenience, control and savings with its end-to-end digital processes. This fits in with our focus of backing purpose-driven technology businesses. Investing in Naked is consistent with the portfolio we’ve built to date and Naspers Foundry’s healthy pipeline of potential future investments.”

Alex Thomson, Co-founder of Naked, commented: “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.”

“But this is just the start of our journey to reinvent insurance. We are excited to have an investor of Naspers Foundry’s calibre onboard to work with us as we expand our team, continue to invest in the technology that puts customers in control, meet the insurance needs of a growing portion of the SA market and enter into international markets.”

Existing Naked investors, Yellowwoods and Hollard, also participated in the funding round, endorsing Naked’s growth plans and its success in rebuilding insurance for social good.

Watch the Naked introduction video here:
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About Naspers:

Established in 1915, Naspers has transformed itself to become a global consumer internet company and one of the largest technology investors in the world. Through Prosus, the group operates and invests globally in markets with long-term growth potential, building leading consumer internet companies that empower people and enrich communities. Prosus has its primary listing on Euronext Amsterdam and a secondary listing on the Johannesburg Stock Exchange and Naspers is the majority owner of Prosus.

In South Africa, Naspers is one of the foremost investors in the technology sector and is committed to building its internet and e-commerce companies in the country. These include Takealot, Mr D Food, Superbalist, OLX, Autotrader, Property24 and PayU, in addition to Media24, South Africa’s leading print and digital media business.

Naspers is also focused on stimulating South Africa’s local tech sector through Naspers Foundry. This is a R1.4 billion investment targeting early-stage technology companies in South Africa that seek to address big societal needs. To help address youth unemployment in impoverished communities, in 2019, Naspers launched Naspers Labs, a social impact programme for young, unemployed South Africans aged between 17 and 25. Located in low income, urban settings, Naspers Labs provide a structured development journey enabling young people to enter the economy.

Naspers has a primary listing on the Johannesburg Stock Exchange (NPN.SJ) and a secondary listing on the A2X Exchange (NPN.AJ) in South Africa and has an ADR listing on the London Stock Exchange (LSE: NPSN).

For more information, please visit www.naspers.com.

About Naspers Foundry: 

Naspers Foundry is an early-stage business funding initiative focused on technology entrepreneurs in South Africa. Over the past year, Naspers Foundry invested R30 million in SweepSouth, an online home and business cleaning services platform that connects clients with trusted, reliable cleaners. Visit SweepSouth for more information.

After year-end, in May 2020, Naspers Foundry invested a further R100 million in Aerobotics, an agritech company that provides tree crop health and yield intelligence data to the agricultural industry using drone and satellite-enabled AI technology. Visit Aerobotics for more information.

In September 2020, Naspers Foundry closed a transaction in Food Supply Network on undisclosed terms. The independent B2B marketplace integrates ordering systems of manufacturers, distributors, and buyers (restaurants, hotels and retailers) of food products. Visit Food Supply Network for more information.

In November 2020, Naspers Foundry invested R45 million in The Student Hub, an edtech company that increases access to vocational education to large numbers of students whilst reducing the costs of delivery of education and training. Visit The Student Hub for more information.

In June 2021, Naspers Foundry invested R42 million in mobility technology company WhereIsMyTransport. The company maps formal and informal public transport networks and uses this data and technology to improve the public transport experience for millions of consumers in high-growth megacities globally.

Visit https://www.whereismytransport.com for more information.

Naspers Foundry invested R34 million in digital short-term insurance advice platform, Ctrl in July 2021. Ctrl provides a unique tech solution to the short-term insurance industry and consumers through its platform, connecting consumers, brokers and insurers in one place. The platform enables brokers to provide insurance advice digitally and allows underserved consumers to easily compare multiple quotes, obtain advice, accept cover and manage their policies.

Visit https://www.takectrl.co.za for more information.

Visit Naspers Foundry for more information.

About Naspers Labs:

Naspers Labs is the group’s flagship social impact programme designed to transform and launch South Africa’s unemployed youth into economic activity. Currently, in its pilot phase, Naspers has invested R69 million in Naspers Labs and has set up four labs.

To date, over 2,000 young people have completed the Naspers Labs programme and 956 employment placements have been made. As a result of Covid-19, Naspers Labs is expanding its offering to train youth in Cyber Security, Software Development and Cloud Computing, through remote learning.

Visit www.nasperslabs.org for more information.

About Naspers

Established in 1915, Naspers has transformed itself to become a global consumer internet company and one of the largest technology investors in the world. Through Prosus, the group operates and invests globally in markets with long-term growth potential, building leading consumer internet companies that empower people and enrich communities. Prosus has its primary listing on Euronext Amsterdam and a secondary listing on the Johannesburg Stock Exchange and Naspers is the majority owner of Prosus.

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