Insurtech Root raises additional US$1.5m to fuel expansion
Root, an insurtech based in South Africa, has secured US$1.5m in additional funding to speed up its expansion initiatives, as it looks to establish itself across Europe and the UK, as well as build upon its success in its native market.
The insurtech, founded in 2016, offers an end-to-end platform for insurers, designed to assist in managing, marketing and creating digital insurance products.
Leveraging APIs to simplify the complexities of delivering insurance products, Root’s mission is to empower insurers to independently develop and launch their own products.
Root: Capital gains for market growth
The additional funding secured by Root was led by the VC and growth capital arm of Remgro, Invefin, following earlier investment from the VC firm in 2021.
Root will use its latest investment to fuel its expansion efforts in the UK, where it launched earlier this year in May 2023.
In Europe, the insurtech will look to further capitalise on the growing demand for technology-based insurance solutions on the continent.
Root Co-founder Louw Hopley says: "We've built a trusted partnership with Invenfin since they invested in our business two years ago, and I'm delighted that they see further potential in our growth strategy and want to continue to invest in our future as we scale up internationally.
“The time is right for us, as lots of insurers are realising that innovative partner insurance channels such as embedded insurance are essential, and they want to invest in the robust, API-first technology they need to get to market quickly and confidently.”
Investment Executive at Invenfin, Theo van den Berg, adds: “Root is a great example of the type of company that Invenfin looks to invest in; a strong team building a world-beating product that’s winning in its South African home market and has clear potential globally.
“We believe in Root’s vision that the future of insurance is embedded, enabling companies to provide much more accessible, contextual and affordable insurance to consumers.
“We’re excited to back Root again following our first investment in 2021, as it accelerates its growth in the UK and beyond.”
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