(Ecofin Agency) - This is the largest fundraising effort ever carried out by Naked in South Africa.

Naked, a fully digital insurance platform based in South Africa, announced on January 21, 2025, that it has secured 700 million rands ($37.8 million) in its Series B funding round.

The funding came from a mix of existing investors, including Yellowwoods, the International Finance Corporation (IFC), and Germany’s Development Finance Institution (DEG), along with a new investor, BlueOrchard. With this investment, BlueOrchard, a global impact investment firm, has also become a shareholder in Naked.

Alex Thomson, co-founder of Naked, expressed excitement about the new investment, saying, “This investment marks an exciting milestone as we continue to define a new category of insurance. It’s a strong vote of confidence from both our existing shareholders and our new investor, BlueOrchard.” He added, “Their support validates the success of our business model and highlights the significant progress we’ve made in making insurance more accessible and convenient.”

Naked plans to use the funds to boost its investment in automation and artificial intelligence (AI), expand its products and markets, and enhance its advertising campaigns to attract and retain customers. The company also intends to use the money to meet regulatory capital requirements tied to its rapid growth.

“Building off the base of a loyal community and unique technology platform, we are positioned for strong growth in the years ahead,” Thomson said.

This round marks Naked’s second Series B funding round and is the largest amount the company has raised, bringing its total funds raised to 1.2 billion rands over four funding cycles.

Founded in 2018 by actuaries Alex Thomson, Sumarié Greybe, and Ernest North, Naked offers insurance services through a digital platform that leverages AI and automation, helping customers save both time and money.