Pineapple, a South African insurtech startup, has raised $22 million in a Collection B spherical, making it probably the most capitalised insurtech startup in Africa.
Pineapple, a South African insurtech startup underwritten by Previous Mutual Insure, Africa’s largest insurer, has raised $22 million in a Collection B spherical to turn out to be Africa’s most-funded insurtech startup, surpassing Kenya’s Turaco. Having raised $5.4 million in a Collection A spherical in 2021 and $1.9 million from a contest and seed spherical, Pineapple has now raised a complete of $29.3 million. Pineapple’s funding spherical was led by new buyers Futuregrowth, Talent10, and MIC, and current buyers Previous Mutual ESD, Lireas Holdings, and ASISA ESD Fund. E4E Africa additionally participated within the spherical.
“This funding spherical stands as a testomony to our tech and AI-powered working mannequin, enabling our mission to supply reasonably priced and complete insurance coverage to all South Africans,” mentioned Marnus van Heerden, Pineapple’s CEO.
Pineapple, which was based by Matthew Elan Smith, Marnus van Heerden, Ndabenhle Junior Nglube, and Sizwe Ndlovu in 2017, provides its customers low cost on-line insurance coverage and returns unused premiums to its clients yearly. Person’s premiums go into their Pineapple wallets and these wallets in flip type a community of wallets and claims are paid from this pockets community. Pineapple’s companies might be accessed fully on-line and customers solely should add an image of the merchandise they need insured and may get a quote in lower than 10 minutes.
Though Africa is the second fastest-growing region for insurance coverage on the earth, the penetration fee for insurance coverage hovers round 3%. The low demand for insurance coverage throughout the continent might be tied to a lack of customer awareness and trust in conventional insurance coverage firms. Pineapple says it appeals to its clients by providing a wholly digital expertise and returning unused premiums to its clients yearly. The six-year-old shared in an announcement that it offers insurance coverage to hundreds of consumers, and nearly half are first-time insurance coverage patrons.
“Pineapple’s progressive strategy to insurance coverage aligns seamlessly with our funding philosophy. Their distinctive development and customer-centric mannequin exemplify a potent mixture of expertise and market understanding,” mentioned Amrish Narrandes, the Head of Futuregrowth Asset Administration’s Personal Fairness/Enterprise Capital.