SOUTH AFRICA – Insurtech startup Pineapple has raised ZAR80 million (US$5.4 million) in Series A funding as it looks to expand further into the car insurance space off the back of growing by 200 percent in the last six months.
Launched in 2018 and an alumnus of the Google Launchpad Africa accelerator, Pineapple allows users to get quotes and insurance on items with just the snap of a picture.
The startup raised funding around the time of its launch and in 2019 banked US$1.5 million after winning the US-based VentureClash competition, and it has now secured its Series A.
The ZAR80 million (US$5.4 million) round includes the likes of Lireas Holdings, the ASISA ESD Fund, E4E, Vunani Capital and the Old Mutual Enterprise & Supplier Development Fund.
Pineapple will use the investment to expand further into the car insurance space after an impressive last six months of growth.
“We did not expect to grow by 200 percent in the first 6 months of this year, but it goes to show that customer insurance purchase behavior is starting to shift online and that customers are becoming more astute as to the online ratings of insurance providers and not settling for second best with respect to customer experience,” said Pineapple co-founder Ndabenhle Ngulube.
The company will use the funds to expand the business as well as grow overseas partnerships. This includes its partnership with Travelers insurance in the United States.
“We did not expect to grow by 200 percent in the first 6 months of this year, but it goes to show that customer insurance purchase behavior is starting to shift online”Ndabenhle Ngulube – Co-founder, Pineapple
“Pineapple is on a journey to improve the trust between the insurer and insured, by providing superior customer experience backed by cutting edge technology and an innovative model,” co-founder Marnus van Heerden said.
The app also offers user benefits such as app rewards and discounts based on users’ driving habits.
Old Mutual Insure underwrites the policies and the app’s founding innovation partner, Hannover-Re, serves as its reinsurer and strategic partner.
Following its launch, Pineapple was awarded MTN Consumer App of the Year and it was also the first insurtech accepted into Google’s Launchpad Accelerator Programme.
Notable investors in the Series A funding round included Vunani Capital, Lireas Holdings, and E4E.
E4E Principal Bakang Komanyane said that the reason for the investment was due to the app’s upcoming features.
This includes a “community-orientated” feature expected to release in August 2021.
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