Root, a Cape Town based startup building infrastructure for the digital insurance economy, has closed a $3 million seed funding round. A select group of high impact angel investors participated alongside primary investors Invenfin, Base Capital, Savannah Fund, P1 Ventures, Luno, and FireID.
Root intends using the capital to roll out its flexible low-code digital insurance platform to innovators in new geographies.
The business has delivered against strong demand in the South African market, powering some of the country’s largest affinity insurance players. Clients include Mr Price Money, FinChoice, Telkom, Metropolitan and Guardrisk for whom Root’s insurance infrastructure processes millions of policies and thousands of claims each month.
“As Root continues to unlock innovation in insurance, we are making it easier for innovators to put customers first and take the industry into the age of truly personalized and convenient embedded products,” says Louw Hopley, CEO and co-founder. “Closing this funding means that we can power more innovators, globally, and accelerate the process of transformation.”
Stuart Gast (CEO at Invenfin) adds that “We have been following Root closely over the last few years and are delighted to be partnering with the team as they enter this new phase of scaling the business. We are confident that Root is positioned to have a massively positive impact on insurance, both in South Africa and abroad.”