New African insurtech company Pineapple has raised $21.3 million Series B in a round led by Futuregrowth, Talent10 and MIC, with participation from Old Mutual ESD, Lireas Holdings, ASISA ESD Fund and E4E Africa.
It is arguably the largest funding round ever in South Africa, Africa’s most secured market. Pineapple takes the record from Naked, another insurtech startup in the country that raised $17 million in Series B in February this year.
“This funding round is a testament to our technology and AI-powered operating model, enabling our mission to deliver affordable and comprehensive insurance to all South Africans,” said Marnus van Heerden, Pineapple co-founder and CEO.
This brings the startup’s total funding to around $29.1 million since it was founded in 2017 by Heerden, Matthew Elan Smith and Ndabenhle Ngulube. Pineapple’s unique offering has been instrumental in expanding the reach of insurance services to a previously untapped customer base, with approximately half of the customer base consisting of first-time policy buyers. In addition, it provides buyers with the opportunity to obtain an online insurance quote within minutes.
South Africans, like other Africans, face a barrier to entry in the insurance sector, which often neglects to address the unique insurance needs of individuals, particularly in terms of affordability. Only 17 in 100 South Africans have health insurance. About 70% of over 11 million registered vehicles on the roads of the country there is no insurance coverage for accidents or damages. Additionally, only 10% have life insuranceexcluding the funeral.
According to Amrish Narrandes, Head of Private Equity/Venture Capital at Futuregrowth Asset Management, “Pineapple’s exceptional growth and customer-centric model exemplify a powerful combination of technology and market understanding. With our investment, we are excited to lead this round, fueling Pineapple’s journey to redefine the insurance landscape.”