South African insurantech Pineapple recently completed a Series B funding round, securing ZAR400 million (approximately US$21.3 million). New investors led this round, including Futuregrowth, Talent10, and MIC.
The company also received continued financial backing from its existing investors, such as Old Mutual ESD, Lireas Holdings, ASISA ESD Fund, and E4E Africa.
Founded in 2017, Pineapple has offered its services at a 20% lower cost than traditional insurance providers. This efficiency has fueled the company’s growth and allowed it to offer more competitive insurance premiums to its customers.
Marnus van Heerden, the Co-founder and CEO of Pineapple, expressed his pride in the recent funding round, highlighting it as a validation of their technology and AI-driven operational model. This, he noted, is crucial for their goal of providing affordable, comprehensive insurance to everyone in South Africa.
Amrish Narrandes, who leads the private equity and venture capital division at Futuregrowth Asset Management, praised Pineapple for its innovative approach to insurance, noting that it fits perfectly with their investment strategy.
Narrandes emphasized, “Their rapid growth and focus on customer needs demonstrate a powerful mix of technological innovation and deep market insight. We are excited to lead this funding round with our ZAR100 million investment, supporting Pineapple in its mission to transform the insurance industry.”
The successful funding round is a result of Pineapple’s sustainable growth and claims ratios, which significantly exceed the usual standards for a burgeoning insurance portfolio.