19 Nov 2023
Pineapple, a leading digital insurance provider in South Africa, has announced the successful completion of a $22 million funding round, setting a new record for the largest Insurtech fundraising in Africa. This significant investment demonstrates a strong belief in Pineapple's innovative approach to transforming the insurance landscape.
The investment round was spearheaded by new investors Futuregrowth, Talent10, and MIC, with continued support from existing investors Old Mutual ESD, Lireas Holdings, ASISA ESD Fund, and E4E Africa. This strong backing underscores Pineapple's robust growth and exceptional claims ratios, which far surpass industry standards for a newer insurance portfolio.
"This funding round serves as a testament to our technology-driven operating model, empowered by AI, which enables us to fulfill our mission of providing affordable and comprehensive insurance to all South Africans," remarked Marnus van Heerden, co-founder, and CEO of Pineapple.
Pineapple's proprietary technology allows the company to service customers at a fraction of the cost compared to traditional insurance providers. This cost-efficiency translates into significant savings for customers, further propelling the company's growth trajectory.
Amrish Narrandes, Head of Futuregrowth Asset Management's Private Equity/Venture Capital, expressed his enthusiasm for Pineapple's potential. "Pineapple's innovative approach to insurance aligns perfectly with our investment philosophy. Their remarkable growth and customer-centric model showcase a powerful combination of technological prowess and market understanding. With our $5.3 million investment, we are delighted to play a pivotal role in this funding round, fueling Pineapple's journey to reshape the insurance landscape," he stated.
Pineapple's recent marketing initiatives, including its witty advertising campaigns and sponsorship of the Rugby World Cup and Cricket World Cup on SABC, have further solidified its position in the South African market. These efforts have provided all South Africans with the opportunity to witness the Springboks defend their title and cheer on the Proteas in their pursuit of victory.
Pineapple has already secured the trust of tens of thousands of customers who have insured their vehicles with the company. Its unique offerings have successfully extended insurance services to a broader customer demographic, with nearly 50% of customers representing first-time insurance buyers.
Despite its relatively young age of five years, Pineapple has rapidly established a reputation for excellence in the market. A recent survey ranked Pineapple as the top insurance provider with the best overall online rating.
"Our business is firmly rooted in the principle of customer centricity. We place our customers at the forefront of every decision we make, and this approach has undoubtedly contributed to our success," affirmed Ndabenhle Ngulube, co-founder of Pineapple.
Co-founder Matthew Elan Smith emphasized that this funding round not only propels Pineapple closer to achieving its ambitious vision but also strengthens its position as a catalyst for positive change, impacting one satisfied customer at a time.
Pineapple is poised to transform the insurance landscape in South Africa, offering simple, affordable, and comprehensive car insurance through its website and app in collaboration with Old Mutual Insure. Customers can effortlessly obtain a full insurance quote and purchase their policy online in under two minutes by visiting pineapple.co.za and following the intuitive process.