Nigerian Insurtech Startup Secures $1.5-Million Pre-Seed Funding

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ETAP founder and CEO Ibraheem Babalola. Image sourced from TechCrunch.com.

ETAP, a Nigerian insurtech startup has announced today the securing of $1.5-million in pre-seed funding, which according to the company, will be used to grow its team and drive the adoption of its car insurance options across Africa.

Starting in Nigeria, the new funding will support the roll-out of ETAP’s innovative new app which allows drivers to buy insurance in 90 seconds, complete claims in 3 minutes or less, and get rewarded for good driving and avoiding accidents.

Toyota Leads Latest Funding Round

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.

Working with a wide range of automotive value chain players, ETAP says it will also explore other opportunities to deliver much-needed insurance services for car owners in other countries across the continent.

“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,” said Takagi Yumi, Project Manager at Mobility 54.

Nigeria’s Car Insurance Problem

Despite longstanding regulations making car insurance compulsory and more than 100,000 car accidents reported between January 2019 and December 2021, only one in five cars in Nigeria are currently insured.

The complexities of buying and claiming insurance have led to widespread apathy for traditional insurance companies and products, with many car owners opting to go without insurance.

With ETAP, the entire process of buying and claiming insurance happens exclusively on a smartphone, enabling a seamless and enjoyable insurance experience for users.

Insurance Meets Technology

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.

ETAP says that it is offering drivers 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 app’s artificial intelligence processes the claim based on previously uploaded images.

The app comes with geolocation tags, timestamps, and other features to prevent fraudulent claims, as well as crash notification, emergency support, and more.

Since launching in beta in November 2021, ETAP has insured more than 130,000 individual trips and over 500,000 kilometers of car journeys, which represents more than eight times the total distance of paved roads in Nigeria.

“Just like any other digital service, we believe Nigerians should be able to buy and claim car insurance without having to ‘call a guy’. We also believe that rewarding good drivers can be a catalyst for better driving and making our 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,” adds Ibraheem Babalola, CEO and Founder of ETAP.

“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 concludes.


Edited by Luis Monzon
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