Cape Town, South Africa (CU)_ As part of a plan to invest about $100 million in technology startup business in its domestic market of South Africa, the Cape Town-based multinational holding company Naspers Ltd. is financing online insurance business Naked. Naspers owns 120 million-rand ($8.4 million) shares in the company through its Foundry fund, making it the largest shareholder. It is also the vehicle’s largest investment in South African businesses to date. A rating for Naked has not been revealed.
During an interview on Tuesday, Fabian Whate, head of the Foundry fund, spoke about the company’s South African investment. He said, “Naked is our seventh investment in the tech startup space in the country, and we are looking at others including a possible health-tech deal in coming months. Venture capital funding is probably going to double this year, with local and international investors increasingly interested in South African startups”.
Alex Thomson co-founded Naked, which allows consumers to purchase insurance for their car, home, and smaller items like phones and computers within two minutes. Payments, claims, and other administration options, such as switching or suspending insurance on products, are all available through the online application.
Naked sells everything online, which is both convenient and cost-effective. According to Thomson, while the company aspires to capture market share from traditional insurers, it also intends to widen the insurance industry to accommodate youngsters who intend to start insuring their gadgets. According to a Naspers information sheet, Africa’s insurance business is valued at $68 billion. The e-commerce leader had earlier invested in China’s Tencent Holdings Ltd., where it still owns the majority stake.
