ETAP, an insurtech startup that makes it easier to buy and claim insurance, has secured $1.5 million in pre-seed funding to grow its team and drive the adoption of much-needed car insurance across Africa.
Starting in Nigeria, the new funding will support the roll-out of ETAP’s game-changing app which allows drivers to buy insurance in 90 seconds, complete claims in 3 minutes or less and get rewarded for good driving and avoiding accidents.
The pre-seed funding round was led by Mobility 54 (the Venture Capital arm of Toyota Tsusho and CFAO Group), with participation from Tangerine Insurance, Graph Ventures (invested in Clubhouse), Newmont, Voltron Capital and other angel investors. Working with a wide range of automotive value chain players, ETAP will also explore other opportunities to deliver much-needed insurance services for car owners in other countries across the continent.
ETAP makes buying and claiming car insurance as easy as taking a picture, using lightning-fast technology to unlock better experiences and fairer prices for drivers across Africa. Drivers have a range of daily, weekly, monthly and quarterly plans to choose from and the entire process of buying and claiming insurance in ETAP can be completed on a smartphone.
With ETAP, drivers also get rewarded for driving safely with Safe Driving Points that can be redeemed for everyday rewards like shopping vouchers, movie tickets and more.
Since launching in beta in November 2021, ETAP has insured more than 130,000 individual trips and over 500,000 km of car journeys, which represents more than eight times the total distance of paved roads in Nigeria.
Despite longstanding regulation-making car insurance compulsory and more than 100,000 car accidents reported between January 2019 and December 2021, only one in five cars in Nigeria are currently insured. The complexities of buying and claiming insurance have led to widespread apathy for traditional insurance companies and products, with many car owners opting to go without insurance. With ETAP, the entire process of buying and claiming insurance happens exclusively on a smartphone, enabling a seamless and enjoyable insurance experience for users.
Commenting, Ibraheem Babalola, CEO and founder of ETAP, “Just like any other digital service, we believe Nigerians should be able to buy and claim car insurance without having to ‘call a guy’. We also believe that rewarding good drivers can be a catalyst for better driving and making our roads safer.
“This is why we have created Africa’s most powerful car insurance app and we are excited to have raised these funds to bring more users on board. Too often, the process of buying and claiming insurance in Africa is so out of touch with the everyday reality of most people but we are changing the game and making the process just as enjoyable as any other experience that consumers access on the mobile phone.”
