South African insurtech Naked announced today, January 21, that it has raised $38 million (about R700 million) in a Series B2 funding round led by global impact investor BlueOrchard. Existing investors, including Hollard, Yellowwoods, International Finance Corporation (IFC), and DEG, also participated.

Naked revolutionizes insurance with its fully digital platform powered by AI and automation. Customers can get quotes, purchase coverage, file claims, or pause accident insurance entirely online, without human interaction.

The funding will strengthen AI and automation, expand products and markets, boost marketing to grow its customer base, and meet regulatory capital requirements for its rapid growth.