by TINTSWALO BALOYI
JOHANNESBURG – SOUTH Africa’s digital insurance provider, Pineapple, has secured R400 million (US$21,34 million) in funding, setting a new record as the largest insurtech fundraised on the continent.
The investment round was led by new investors Futuregrowth, Talent10 and MIC, while the business received additional investment support from existing investors including Old Mutual ESD, Lireas Holdings, ASISA ESD Fund and E4E Africa.
Pineapple reports that the funding round was completed off the back of robust growth and sustainable claims ratios that significantly exceed industry standards for a newer insurance portfolio.
“This funding round stands as a testament to our tech and AI-powered operating model, enabling our mission to offer affordable and comprehensive insurance to all South Africans,” said Pineapple co-founder and Chief Executive Officer, Marnus van Heerden.
Pineapple’s technology allows the company to service customers at 20 percent of the cost of traditional insurance providers.
It says this enables them to pass on this cost saving in insurance premium savings for customers, further accelerating growth.
Amrish Narrandes, Head of Futuregrowth Asset Management’s Private Equity/Venture Capital, said Pineapple’s innovative approach to insurance aligned with Futuregrowth’s investment philosophy.
“Their exceptional growth and customer-centric model exemplify a potent combination of technology and market understanding,” Narrandes said.
Despite being five years old, Pineapple believes it has garnered a reputation for excellence in the market.
“Our business was founded on the principle of customer centricity. We place our customers at the centre of every decision we make, which has really paid off for us,” said Pineapple co-founder, Ndabenhle Ngulube.
– CAJ News