Naked Finalizes Investment Round with BlueOrchard
Deal News | Jan 21, 2025 | BlueOrchard Finance SA
BlueOrchard Finance SA, an impact investment management firm, through its InsuResilience Investment Fund Private Equity II, has made a significant investment in Naked Financial Technology Pvt. Ltd., a South African digital insurance platform. Naked successfully raised USD 38 million in a funding round that included contributions from incumbent investors. As a leading insurtech, Naked offers a fully automated insurance service for vehicles, property, and individual items such as electronics, available via an efficient digital platform that provides quick insurance quotes within 90 seconds. Since its foundation in 2018, Naked has aimed to make insurance more accessible and transparent, using AI-driven methodologies to offer competitive premiums and streamline processes. Known for pioneering user-friendly insurance solutions, Naked also provides climate-related coverage, securing customers against risks stemming from severe weather conditions. BlueOrchard’s investment aligns with their strategy of enhancing financial resilience while expanding access to digital insurance solutions. Through this partnership, BlueOrchard will take an active role in governance and product development, strengthening Naked’s offering and propelling its growth trajectory. Underpinning this cooperation is Naked’s commitment to reshaping insurance delivery, supported by a leadership with over 20 years in South Africa’s insurance industry. This deal underscores the strategic intent of BlueOrchard to connect digital innovations with financial inclusion across emerging markets.
Sectors
- Financial Technology
- Insurance
- Private Equity
- Impact Investing
Geography
- South Africa – Naked Financial Technology, the target company, is based in South Africa and serves the local insurance market.
- Global – BlueOrchard operates on a global scale, making investments across over 100 countries.
Industry
- Financial Technology – Naked operates within the realm of insurtech, specializing in digital insurance solutions powered by AI technology.
- Insurance – Naked provides comprehensive insurance solutions, including climate cover, aligning with traditional and emerging insurance practices.
- Private Equity – BlueOrchard’s investment via its InsuResilience Investment Fund exemplifies the private equity sector's focus on expanding digital insurance markets.
- Impact Investing – BlueOrchard's investment represents impact investing, aimed at creating financial inclusion while delivering returns in frontier markets.
Financials
- USD 38 million – The total funding round amount raised by Naked Financial Technology, partially from BlueOrchard's investment.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Naked Financial Technology Pvt. Ltd. | Target Company | Company | A South African digital insurance platform offering vehicle, property, and individual insurance coverage with a focus on accessibility and convenience. |
| BlueOrchard Finance SA | Investor | Company | A global impact investment manager focused on promoting financial inclusion and sustainability through innovative investment solutions. |
| Richard Hardy | Private Equity Investment Director Africa | Person | Director involved in the investment decision and strategic alignment of BlueOrchard’s goals with Naked’s mission. |
| Alex Thomson | Co-founder of Naked | Person | Co-founder actively involved in expanding Naked's innovative insurance model and strategic growth. |