- The InsuResilience Investment Fund Private Equity II (IIF II), managed by BlueOrchard, has recently finalised an investment in Naked Financial Technology Pvt. Ltd. (“Naked”), a leading digital insurance platform in the South African market.
- This investment forms part of a USD 38 million funding round, which also included participation from existing investors.
- Naked provides comprehensive vehicle, property, and single-item insurance quickly and conveniently through its website and mobile app.
- Naked’s AI-driven platform allows for insurance quotes to be generated in under 90 seconds.
- Naked’s fully digital approach of complete online self-service has proven to be popular among consumers eager for a quick, transparent, and easy insurance experience.
- Naked offers some of the most competitive premiums in the South African insurance market thanks to its technology-driven automated processes.
Naked was launched in 2018 with the mission of making insurance more accessible, convenient, and transparent. Through its automated processes, which replace many inefficient parts of the traditional insurance model with in-house-built technology, the company unlocks significant cost savings, which is ultimately reflected in lower premiums. Beyond convenience and competitive pricing, Naked has enhanced transparency by simplifying its products to offer easy-to-understand all-risk cover, free from many of the exclusions typical in similar policies in the market. Naked has developed and refined much-needed climate cover to protect customers against the risks of flooding and large, damaging weather events.
Naked’s fully digital model substantially lowers the unit cost of issuing policies, enabling Naked to offer highly competitive premiums in the South African market. This efficient cost structure also allows Naked to underwrite small-value policies that were previously unavailable to customers. The company provides insurance coverage for vehicles, property, and individual items such as phones, laptops, and other electronics, with all policies including climate cover.
Naked is led by a highly experienced team of founders, all actuaries, each with more than 20 years of experience in the South African insurance market. The company’s founders have built a similarly high-performing team comprised of insurance experts and technology specialists committed to providing a best-in-class end-to-end customer experience.
“Naked’s objective of leveraging digital tools and capabilities to enhance access to insurance aligns closely with IIF’s investment strategy. Our investment will enable the company to broaden its outreach and develop new products that will continue to enhance the financial resilience of its customers,” said Richard Hardy, Private Equity Investment Director Africa at BlueOrchard.
IIF II will appoint a representative to Naked’s Board of Directors and will work closely with the company’s leadership to strengthen corporate governance, enhance their climate insurance offering, and accelerate technological development.
IIF II, building upon the achievements of its predecessor fund, places significant emphasis on leveraging technology to enhance the affordability and accessibility of climate insurance. The fund’s goal is to establish a robust ecosystem to facilitate access to climate insurance. Operating as a public-private partnership, it stands out as an example of effective climate change adaptation strategy through both its investment strategy and its access to technical assistance funding for partner companies.
“This investment marks an exciting milestone as we continue to define a new category of insurance. It’s a strong vote of confidence from both our existing shareholders and our new investor, BlueOrchard. Their support validates the success of our business model and highlights the significant progress we’ve made in making insurance more accessible and convenient. Building off the base of a loyal community and unique technology platform, we are positioned for strong growth in the years ahead. We’re deeply grateful to South African consumers for embracing this new generation of insurance and to our investors for their trust in our vision,” said Co-founder of Naked, Alex Thomson.
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For further information, please contact:
BlueOrchard
Clara Scholz, Communications & Marketing Manager
+41 43 8837332
clara.scholz@blueorchard.com
About BlueOrchard Finance Ltd
BlueOrchard is a leading global impact investment manager and member of the Schroders Group. As a pioneer of impact investing, the firm is dedicated to generating lasting positive impact for communities and the environment, while aiming at providing attractive returns to investors. BlueOrchard was founded in 2001, by initiative of the UN, as the first commercial manager of microfinance debt investments worldwide. Today, the firm offers impact investment solutions across asset classes, connecting millions of entrepreneurs in emerging and frontier markets with investors with the aim to make impact investment solutions accessible to all and to advance the conscious use of capital. Being a professional investment manager and expert in innovative blended finance mandates, BlueOrchard has a sophisticated international investor base and is a trusted partner of leading global development finance institutions. To date, BlueOrchard has invested over USD 11 billion across more than 100 countries. As of December 2023, BlueOrchard supported over 300 million people in emerging and frontier markets with its investments. For additional information, please visit: www.blueorchard.com.
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