Johannesburg insurtech startup Pineapple secures R80m in funding

Johannesburg-based car insurance startup Pineapple has announced it has closed its Series A funding round with R80 million secured from investors.

The company announced the figure on 26 July.

In a statement, co-founder Ndabenhle Ngulube attributed the round’s success to the app’s growth in 2021.

“We did not expect to grow by 200% in the first 6 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,” he said.

Notable investors in the Series A funding round included Vunani Capital, Lireas Holdings, and E4E.

The company will use the funds to expand the business as well as grow overseas partnerships. This includes its partnership with Travelers insurance in the United States.

The app launched in mid-2018. It lets users insure their car or belongings quickly and easily and offers a digital solution to policy management.

“Pineapple is on a journey to improve the trust between insurer and insured, by providing superior customer experience backed by cutting edge technology and an innovative model,” co-founder Marnus van Heerden said.

The app also offers user benefits such as app rewards and discounts based on users’ driving habits.

Old Mutual Insure underwrites the policies and the app’s founding innovation partner, Hannover-Re, serves as its reinsurer and strategic partner.

Following its launch, Pineapple was awarded MTN Consumer App of the Year. It is was also the first insurtech accepted into Google’s Launchpad Accelerator Programme.

Notable investors in the Series A funding round included Vunani Capital, Lireas Holdings, and E4E.

E4E Principal Bakang Komanyane said that the reason for the investment was due to the app’s upcoming features.

This includes a “community-orientated” feature expected to release in August.

Read more: Naspers invests R34m in local insurance advice app Ctrl

Read more: SA home services portal Kandua closes ‘significant’ funding round

Featured image: Supplied