Pineapple, the South African digital insurance provider, has announced the conclusion of a R400 million ($22 million) funding round. The largest insuretech fundraiser ever in Africa.
The investment was led by new investors Futuregrowth, Talent10 and MIC, whilst existing investors Old Mutual ESD, Lireas Holdings, ASISA ESD Fund and E4E Africa also gave additional funding.
Pineapple was founded by Matthew Elan Smith, Marnus van Heerden, Ndabenhle Junior Nglube, and Sizwe Ndlovu in 2017 and it 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.
“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.
The group’s technology and AI-powered operating model allow it to service customers at 20% of the cost of traditional insurance providers, enabling them to pass this cost saving in insurance premium savings to customers.
“Their (Pineapple’s) exceptional growth and customer-centric model exemplify a potent combination of technology and market understanding,” Amrish Narrandes, Head of Futuregrowth Asset Management’s Private Equity/Venture Capital, said.
“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.
