Naked, a South African insurtech firm, has raised $38 mn in its Series B2 funding round. This represents the largest insurtech investment in Africa to date, reinforcing Naked’s leadership in the region.
BlueOrchard Finance, a global impact investor, participated in the round, alongside returning investors Hollard Insurance, YellowWoods, IFC – International Finance Corporation, and DEG, the German development finance institution.
Founded in 2018 by former Ernst & Young executives and actuaries Alex Thomson, Sumarié Greybe, and Ernest North, Naked distinguishes itself through a fully digital, AI-driven insurance platform. The company offers car, home, and single-item insurance policies entirely online, claiming to provide final quotes in under 90 seconds.
Customers can manage their policies, including purchasing coverage, submitting claims, and pausing coverage, directly through the app without human interaction. This streamlined approach has resonated with a digitally savvy customer base, contributing to the company’s rapid growth (see Largest InsurTech Unicorn Startups by Valuation & Venture Capital Raised).
Naked’s business model, dubbed the “Naked Difference,” aims to address perceived conflicts of interest within traditional insurance. The company operates on a fixed percentage of premiums, donating any surplus from unclaimed funds to customer-selected charities. This model seeks to align the company’s interests with those of its customers, removing the incentive to deny valid claims to boost profitability. This approach has been a key differentiator in a market often perceived as opaque and driven by profit maximisation.
Its AI-powered platform allows customers to manage their insurance needs—such as obtaining quotes, purchasing policies, and filing claims—entirely online, eliminating the need for phone interactions or paperwork.

This investment marks a significant milestone as we redefine insurance. It underscores the trust of our existing shareholders and new partner BlueOrchard, affirming the strength of our business model.
Alex Thomson, co-founder of Naked
“With a loyal customer base and a robust technology platform, we are well-positioned for sustained growth. We’re grateful for the support of South African consumers and investors who share our vision,” said Alex Thomson.
Naked stands out as South Africa’s sole insurer offering 100% of its car, home, and single-item insurance policies online. Its rapid growth highlights how technology can transform customer experience and boost operational efficiency. By taking a fixed percentage of premiums and donating surplus funds from unclaimed claims to causes selected by its customers, Naked builds trust and eliminates conflicts of interest.
The $38 mn funding will fuel Naked’s growth by enhancing its AI and automation capabilities, expanding its product offerings and market presence, and strengthening its advertising efforts to attract a broader customer base.
The South African insurance market is characterised by a mix of established players and emerging digital challengers. While traditional insurers maintain significant market share, the increasing penetration of smartphones and internet access has created an opening for insurtech companies like Naked to disrupt the status quo.
The investment in Naked highlights the growing interest in Africa’s technology sector, particularly in fintech and insurtech. Investors are increasingly drawn to the continent’s large, young population and the potential for technology to address long-standing challenges in financial services.