South African insurtech startup, 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 all-time largest funding round in South Africa, Africa's most insured 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 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 co-founder and CEO.
This brings the startup's total funding to about $29.1 million since it was founded in 2017 by Heerden, Matthew Elan Smith and Ndabenhle Ngulube. Pineapple's unique offering has played a crucial role in broadening the reach of insurance services to a previously untapped customer base, with approximately half of the clientele consisting of individuals purchasing insurance for the first time. Additionally, it provides buyers the chance to obtain an online insurance quote within a few minutes.
South Africans, similar to other Africans, confront an entry barrier into the insurance sector, which frequently neglects to address the distinct insurance needs of individuals, particularly in terms of affordability. Only 17 out of every 100 South Africans have health insurance. About 70% of the over 11 million registered vehicles on the country's roads lack insurance coverage for accidents or damage. Additionally, only 10% have life insurance, excluding funeral cover.
According to Amrish Narrandes, head of Futuregrowth Asset Management’s Private Equity/Venture Capital, “Pineapple’s exceptional growth and customer-centric model exemplify a potent combination of technology and market understanding. With our investment, we are thrilled to spearhead this round, fuelling Pineapple’s journey in redefining the insurance landscape.”