South African Insurtech Startup Naked Secures $38 Million in Series B2 Funding

South African insurtech startup, Naked, has raised $38 million in a Series B2 funding round to further revolutionize the insurance industry with its technology-driven solutions. According to a statement shared with Technext, this funding will enable Naked to enhance its focus on convenience, transparency, and cost-effectiveness.

The funding round was led by global impact investor BlueOrchard, with increased support from existing investors, including Hollard, Yellowwoods, the International Finance Corporation (IFC), and Germany’s development finance institution (DEG).

Launched in 2018 by actuaries Alex Thomson, Sumarié Greybe, and Ernest North, Naked leverages artificial intelligence (AI) and automation to deliver a fully digital insurance platform. Its app allows users to obtain insurance quotes in less than 90 seconds, purchase policies online, submit claims, or even pause accident coverage, all without requiring phone calls or human intervention. As the only platform in South Africa that sells 100% of its car, home, and single-item insurance policies online, Naked has achieved rapid scalability while enhancing risk selection and pricing for profitable unit economics.

In addition to its technological edge, Naked stands out with its innovative business model, the “Naked Difference.” Unlike traditional insurers, Naked takes a fixed percentage of premiums and donates any surplus from unclaimed funds to causes chosen by its customers. This unique approach removes conflicts of interest in claims processing, ensuring fair and prompt handling of valid claims while building trust among its customers.

The newly secured funding will support Naked’s growth by increasing its investment in AI and automation, expanding its product offerings and market reach, and boosting its advertising efforts to attract a broader customer base. Furthermore, the funds will help Naked meet regulatory capital requirements, ensuring compliance as the business continues to grow and evolve.

With this fresh capital, Naked is well-positioned to solidify its role as a modern, purpose-driven alternative in the insurance sector, offering South Africans a transparent, efficient, and customer-focused experience.