Pineapple, a South African insurtech startup, has raised $22 million in a Series B round, making it the most capitalised insurtech startup in Africa.
Pineapple, a South African insurtech startup underwritten by Old Mutual Insure, Africa’s largest insurer, has raised $22 million in a Series B round to become Africa’s most-funded insurtech startup, surpassing Kenya’s Turaco. Having raised $5.4 million in a Series A round in 2021 and $1.9 million from a competition and seed round, Pineapple has now raised a total of $29.3 million. Pineapple’s funding round was led by new investors Futuregrowth, Talent10, and MIC, and existing investors Old Mutual ESD, Lireas Holdings, and ASISA ESD Fund. E4E Africa also participated in the round.
“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 Marnus van Heerden, Pineapple’s CEO.
Pineapple, which was founded by Matthew Elan Smith, Marnus van Heerden, Ndabenhle Junior Nglube, and Sizwe Ndlovu in 2017, offers its users cheap online insurance and returns unused premiums to its customers annually. User’s premiums go into their Pineapple wallets and these wallets in turn form a network of wallets and claims are paid from this wallet network. Pineapple’s services can be accessed entirely online and users only have to upload a picture of the item they want insured and can get a quote in less than 10 minutes.
Although Africa is the second fastest-growing region for insurance in the world, the penetration rate for insurance hovers around 3%. The low demand for insurance across the continent can be tied to a lack of customer awareness and trust in traditional insurance companies. Pineapple says it appeals to its customers by offering an entirely digital experience and returning unused premiums to its customers yearly. The six-year-old shared in a statement that it provides insurance to thousands of customers, and almost half are first-time insurance buyers.
“Pineapple’s innovative approach to insurance aligns seamlessly with our investment philosophy. Their exceptional growth and customer-centric model exemplify a potent combination of technology and market understanding,” said Amrish Narrandes, the Head of Futuregrowth Asset Management’s Private Equity/Venture Capital.