• South African insurtech firm Pineapple, from the billboards, has raised a massive R400 million in its latest funding round.
• The company’s latest gains were granted by firms Futuregrowth, Talent10, MIC, as well as Old Mutual ESD and others.
• Pineapple’s co-founder says that latest funding round brings it one step closer to its lofty ambitions.

South African insurance company Pineapple, known for its humourous and millennial-targeting billboard ads, has announced gains from its latest round of Series B funding in which it made a whopping R400 million or $21 million.

This marks one of the largest funding rounds completed by an insurtech company in Africa and a boost over its Series A round, which saw it raise $5.4 million in 2021, as per Disrupt Africa.

Pineapple’s Series B 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.

To attract more investment, Pineapple reported robust growth and sustainable claims ratios that significantly exceed industry standards for a newer insurance portfolio, according to a company announcement sent to Hypertext. Pineapple was officially launched in 2018.

“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,” enthused Pineapple co-founder and CEO, Marnus van Heerden.

Pineapple says that after five years it has already signed “tens of thousands” of customers to its vehicle insurance products. Its targeted ads and unique model have also been a hit with younger customers, with nearly 50 percent of its customers being first-time insurance buyers.

“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. 

In terms of what Pineapple will do with this latest R400 million, third co-founder Matthew Elan Smith explains that the Series B round propels the company closer to its final vision, and cements it is a change-maker in the insurance space.

Pineapple says it offers simple and comprehensive vehicle cover through digital channels in partnership with Old Mutal Insure. One highlight of its products is the frictionless nature of onboarding, with customers able to apply and buy insurance in under two minutes.

The company claims its technology allows it to service customers at 20 percent of the cost of traditional insurance providers.

“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,” added Amrish Narrandes, Head of Futuregrowth Asset Management’s Private Equity/Venture Capital. Futuregrowth invested R100 million into Pineapple in this latest round.

For more information on Pineapple products, head here.

[Image – @DeanOelsch on X]