Pineapple, South Africa’s leading digital insurance provider, has announced the conclusion of a R400m funding round. This transaction sets a new record as the largest Insurtech fundraised on the continent, reaffirming investor confidence in Pineapple’s transformative approach to insurance.
The investment round was led by new investors Futuregrowth, Talent10 and MIC, while the business received additional investment support from existing investors including Old Mutual ESD, Lireas Holdings, ASISA ESD Fund and E4E Africa. The funding round was completed off the back of robust growth and sustainable claims ratios that significantly exceed industry standards for a newer insurance portfolio.
Pineapple co-founder and CEO, Marnus van Heerden, says, “This funding round stands as a testament to our tech and AI-powered operating model, enabling our mission to offer affordable and comprehensive insurance to all South Africans.”
Pineapple’s technology allows the company to service customers at 20% of the cost of traditional insurance providers. This enables them to pass on this cost saving in insurance premium savings for customers, further accelerating growth.
Amrish Narrandes, Head of Futuregrowth Asset Management’s Private Equity/Venture Capital, adds, “Pineapple’s innovative approach to insurance aligns seamlessly with our investment philosophy. Their exceptional growth and customer-centric model exemplify a potent combination of technology and market understanding. With our R100 million investment, we are thrilled to spearhead this round, fueling Pineapple’s journey in redefining the insurance landscape.”
Pineapple recently made headlines with its witty advertising and its sponsorship of the Rugby World Cup and Cricket World Cup on SABC, enabling all South Africans the opportunity to watch the Springboks defend their title and watch the Proteas attempt to win for the first time.
Tens of thousands of customers have insured their vehicles with Pineapple. Its unique offering has been instrumental in extending insurance services to a new customer demographic, with nearly 50% of customers being first-time insurance buyers.
Despite being just five years old, Pineapple has garnered a reputation for excellence in the market. A recent survey ranked them as having the best combined online rating out of all insurance providers.
“Our business was founded on the principle of customer centricity. We place our customers at the centre of every decision we make, which has really paid off for us,” says Pineapple co-founder, Ndabenhle Ngulube.
Co-founder Matthew Elan Smith explained that this funding round not only propels Pineapple closer to its ambitious vision but also cements its position as a catalyst for change, one satisfied customer at a time.
The insurtech company offers simple and affordable comprehensive car insurance via its website and app in partnership with Old Mutual Insure. Customers can get a full insurance quote and buy their policy online in under two minutes by visiting pineapple.co.za and completing what is a very intuitive flow.
What Pineapple’s customers are saying:
Gavin writes: “First time being with Pineapple insurance and I am already loving the way they deal with customer assistance. Absolutely no waiting time period but immediate assistance”
Fanele writes “Cheap premium, great service. Service at the tap of a whatsapp message 🙌🏽🙌🏽”
Bisham notes: “Easy sign up process, super friendly staff and my premium was 40% cheaper than my previous insurer.”