• Friday, March 29, 2024
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ETAP secures $1.5mn pre-seed funding to boost car insurance in Africa

ETAP secures $1.5mn pre-seed funding to boost car insurance in Africa

ETAP, a Nigerian-based insurtech start-up, has secured $1.5 million in pre-seed funding to accelerate the adoption of car insurance in Nigeria and Africa.

The start-up disclosed that the funding will support the rollout of an app which will enable drivers to buy insurance in 90 seconds, complete claims in 3 minutes and get rewarded for good driving.

According to ETAP, the pre-seed funding round was led by Mobility 54, the Venture Capital arm of Toyota Tsusho and CFAO Group, with participation from Tangerine Insurance, Graph Ventures (invested in Clubhouse), Newmont and other angel investors.

Ibraheem Babalola, CEO and founder of ETAP stated that Nigerians should be able to buy and claim car insurance without having to call someone, adding that rewarding good drivers can be a catalyst for better driving and making roads safer.

“This is why we have created Africa’s most powerful car insurance app and we are excited to have raised these funds to bring more users on board. Too often, the process of buying and claiming insurance in Africa is so out of touch with the everyday reality of most people but we are changing the game and making the process just as enjoyable as any other experience that consumers access on the mobile phone,” Babalola said.

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Yumi Takagi, Project Manager at Mobility 54 expressed delight in working with the insurtech company in expanding their innovation across the globe.

“ETAP is addressing many challenges that impact the automotive experience in Africa and we are excited to support and work with them to bring their innovation to more drivers across the continent. We believe that ETAP will engage with this important role and revolutionize the automotive insurance industry with their powerful technology,” Takagi said

The company stated that only one in five cars in Nigeria are currently insured, despite the longstanding regulation making car insurance compulsory and more than 100,00 cars accidents reported between January 2019 and December 2021.

Similarly, the Start-up disclosed that with ETAP, the entire process of buying and claiming insurance happens exclusively on a smartphone, enabling a seamless and enjoyable insurance experience for users.

“ETAP uses machine learning to build intelligent risk profiles that determine appropriate premiums for each driver, allowing them to achieve lower premiums by driving safely. Using advanced telematics, the driving experience is gamified to improve driving behaviour and drivers can earn Safe Driving Points that can be exchanged for shopping vouchers for the most in-demand retail outlets, fuel, cinema and concert tickets, and other exciting experiences.

“Drivers also have flexible coverage options, including daily, weekly, monthly, quarterly and annual plans depending on their needs. In the unfortunate event of an accident, they simply need to take a picture of the affected part of the car via the app and the artificial intelligence processes the claim based on previously uploaded images,” ETAP stated