Naspers, through its Naspers Foundry investment business, is leading a R160-million series-A funding round in South African fintech start-up Naked Insurance.

Naspers Foundry is investing the bulk of the money – R120-million – with the rest coming from existing investors Yellowwoods and Hollard.

Naked in a digital insurance platform, offering consumers comprehensive and instant cover for cars, homes, contents and standalone items. Its business model aims to make insurance more accessible and trustworthy.

The funding round is Naspers Foundry’s second insurtech investment and its largest single investment to date.

The investment is part of Naspers’s R1.4-billion commitment to grow South Africa’s early-stage tech ecosystem, the company said in a statement on Wednesday announcing the deal.

“Co-founded by actuaries Alex Thomson, Sumarie Greybe, and Ernest North, Naked uses artificial intelligence and automation to create a new type of insurance experience,” Naspers said.

‘Free from legacy’

“Built from scratch and free from legacy processes and systems, Naked is pioneering a business model that aims to restore trust in how insurance works. Consumers benefit from lower costs as well as more control of – and convenience in – their insurance experience. They can get a final insurance quote for their home, its contents, their standalone items or their car in less than 90 seconds, and switch or pause their cover, all online, without speaking to a contact centre agent.”