South African insurtech startup Naked has secured $38 million in its Series B2 funding round to accelerate its investment in automation and artificial intelligence (AI). This funding round, led by the International Finance Corporation (IFC), aims to revolutionize the insurance industry in Africa by enhancing digital solutions and improving customer experiences.
Naked, known for its innovative AI-driven insurance platform, offers fully digital services that streamline policy management, claims processing, and customer support. The latest funding round saw participation from leading investors, including Yellowwoods and Hollard, underscoring the growing confidence in Africa’s insurtech sector.
With this fresh capital injection, Naked plans to deepen its technological capabilities by expanding its AI functionalities, improving fraud detection systems, and personalizing customer interactions. The company aims to make insurance more accessible, affordable, and transparent for consumers across South Africa and beyond. 
According to Naked’s co-founder, the infusion of funds will enable the company to further automate complex processes, reducing operational costs and enhancing efficiency. This strategic move aligns with the broader trend of digital transformation in Africa’s financial services sector.
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Industry analysts highlight that Naked’s growth mirrors the increasing demand for insurtech solutions in Africa, driven by rising smartphone penetration and evolving consumer preferences. The company’s success serves as a testament to the potential of AI and automation in reshaping traditional insurance models.
Naked’s $38 million Series B2 funding represents a significant milestone for Africa’s insurtech ecosystem. As the company continues to invest in AI and automation, it is poised to redefine insurance accessibility and efficiency across the continent. The funding signals a strong vote of confidence in the transformative power of digital insurance solutions in Africa.
Learn More:
- https://launchbaseafrica.com/2025/01/21/south-african-insurtech-naked-secures-38m-funding-in-africas-largest-sector-deal/
- https://techpoint.africa/2025/01/21/naked-raises-series-b2/
