An insurtech startup in South Africa – Pineapple has raised $3.4 million Series A to further expand into the car insurance space after it claims to have grown by 200% in the last six months. This is after raising $400,000 in seed funding, in 2017, with participation from Lireas Holdings.
Founded in 2017 by Matthew Elan Smith, Ndabenhle Junior Ngulube and Marnus van Heerden, Pineapple claims to be a flexible, scalable and decentralised peer-to-peer insurer that provides full-fledged insurance coverage to its members. The three got together as part of an innovation competition that ran for six months, run by Hannover-Re, during 2016, to find disruptive models to the reinsurance/insurance space.
The company does not underwrite insurance claims itself as it tags itself as a Digital Financial Services Provider. Its partner, Old Mutual Insurance, does this.
Commenting on the money raised, Ngulube stated, “We did not expect to grow by 200 per cent in the first six months of this year, but it goes to show that customer insurance purchase behaviour is starting to shift online and that customers are becoming more astute as to the online ratings of insurance providers and not settling for second best with respect to customer experience.”