South African insurtech startup, Root has secured $1.5 million in funding to expedite its expansion initiatives, building upon its success in its home market and beyond.
Founded in 2016, Root offers an end-to-end insurance platform designed to assist companies in creating, marketing, and managing digital insurance products in Africa, the UK, and Europe. By simplifying the complexities of insurance through user-friendly APIs, Root empowers businesses to independently develop and deploy insurance products.
The recent funding injection, led by Invenfin, the venture and growth capital arm of Remgro, follows an earlier investment round in 2021. This fresh capital infusion will facilitate Root's expansion efforts in the UK where it launched in May and Europe, capitalising on the growing demand for innovative insurance solutions.
Louw Hopley, co-founder at Root, expressed enthusiasm for the continued support from Invenfin, stating, "We've built a trusted partnership with Invenfin since they invested in our business two years ago, and I'm delighted that they see further potential in our growth strategy and want to continue to invest in our future as we scale up internationally."
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Root's strategic goals include expanding its presence in the UK while making inroads into the broader European market. This funding from Invenfin positions Root to capitalise on the evolving landscape of insurance, where forward-looking insurers are recognizing the significance of partner insurance channels like embedded insurance. Root aims to provide the robust, API-first technology required for insurers to enter these markets swiftly and confidently.
Theo van den Berg, investment executive at Invenfin, praised Root's vision, emphasising the importance of embedded insurance in the future of the industry. He noted, "We believe in Root's vision that the future of insurance is embedded, enabling companies to provide much more accessible, contextual, and affordable insurance to consumers. We're excited to back Root again following our first investment in 2021 as it accelerates its growth in the UK and beyond."
With its commitment to making insurance more accessible and adaptable, Root is poised to further disrupt the insurance landscape as it expands its operations into new territories.