Distribution InsurTech Root Receives $1.5M Investment from Invenfin

The South Africa-based digital insurance platform enabling rapid launch of new products and digital engagement channels, plans to expand in the U.K. and continental Europe.

(Image source: Root Platform homepage.)

Root Platform (Cape Town), a distribution focused InsurTech has announced that South Africa-based Invenfin (Stellenbosch), the venture and growth capital arm of Remgro Limited, a diversified investment holding company, has made a further investment of $1.5m in the company.

Louw Hopley, Co-Founder, Root.

Root, founded in 2016 in South Africa, describes its offering as a low-code platform that powers modern digital insurance products designed for direct, affinity and embedded distribution at scale. The company first raised an external round of funding from investors including Invenfin in 2021, and says it will now accelerate its plans to expand in the U.K. and Europe thanks to this further investment. Investment figures in the previous round are undisclosed.

Market for Innovative Distribution Channels

“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,” comments Louw Hopley, co-founder, Root.“We want to continue to expand in the U.K. while also making strides into the rest of Europe, and this growth capital from Invenfin enables us to do just that. The time is right for us, as lots of insurers are realizing 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. We’re excited about what is to come over the next few years for our business.”

Theo van den Berg, Investment Executive, Invenfin.

World-Beating Product

Root is an outstanding example of the type of company that Invenfin looks to invest in, according to Theo van den Berg, Investment Executive, Invenfin. He describes Root as 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,” van den Berg says. “We’re excited to back Root again following our first investment in 2021, as it accelerates its growth in the U.K. and beyond.”

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Anthony R. O’Donnell // Anthony O'Donnell is Executive Editor of Insurance Innovation Reporter. For nearly two decades, he has been an observer and commentator on the use of information technology in the insurance industry, following industry trends and writing about the use of IT across all sectors of the insurance industry. He can be reached at AnthODonnell@IIReporter.com or (503) 936-2803.

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