South African insurtech startup Pineapple has secured $22 million in a Series B funding round, solidifying its position as Africa’s most well-funded insurtech startup. This significant investment surpasses the previous record held by Kenya’s Turaco and brings Pineapple’s total funding to $29.3 million.
The Series B round was led by new investors Futuregrowth, Talent10, and MIC, alongside continued support from existing investors Old Mutual ESD, Lireas Holdings, and ASISA ESD Fund. Additionally, E4E Africa participated in the round.
“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,” remarked Marnus van Heerden, Pineapple’s CEO.
Established in 2017, Pineapple has revolutionized the insurance landscape by leveraging technology and artificial intelligence to provide accessible and affordable insurance solutions. The company’s unique model involves returning unused premiums to customers annually, fostering trust and encouraging participation in the insurance sector.
Pineapple’s services are entirely digital, allowing users to obtain quotes in under 10 minutes simply by uploading a picture of the item they wish to insure. This streamlined process has proven particularly appealing to first-time insurance buyers, with nearly half of Pineapple’s customers falling into this category.
Despite Africa’s position as the second-fastest-growing region for insurance globally, the continent’s insurance penetration rate remains around 3%. This low uptake can be attributed to factors such as limited customer awareness and trust in traditional insurance companies.
Pineapple’s success underscores the potential of technology to address these challenges and drive financial inclusion across Africa. The company’s focus on customer-centricity and innovative solutions has garnered widespread recognition and support, positioning it as a leading force in the transformation of Africa’s insurance landscape.
With its Series B funding, Pineapple is poised to accelerate its growth and expand its reach, further democratizing access to insurance for millions of Africans. The company’s commitment to innovation and customer satisfaction will undoubtedly continue to shape the future of insurance in Africa.