ETAP, an insurtech startup that makes it easier to buy and claim insurance, has secured $1.5 million in pre-seed funding to grow its team and drive the adoption of much-needed car insurance across Africa. 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.
Starting in Nigeria, the new funding will support the roll-out of ETAP’s game-changing 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. Working with a wide range of automotive value chain players, ETAP will also explore other opportunities to deliver much-needed insurance services for car owners in other countries across the continent.
Only one in five cars in Nigeria are currently insured, and 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, buying and claiming insurance happens exclusively on a smartphone, enabling a seamless and enjoyable insurance experience for users.
Since launching in beta in November 2021, ETAP has insured more than 130,000 individual trips and over 500,000 car journeys, representing more than eight times the total distance of paved roads in Nigeria.
According to Ibraheem Babalola, CEO and founder of ETAP, “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. Too often, 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.”
Yumi Takagi, Project Manager at Mobility 54 said, “ETAP addresses many challenges that impact the automotive experience in Africa. 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 in this important role and revolutionize the automotive insurance industry with its powerful 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. Depending on their needs, drivers also have flexible coverage options, including daily, weekly, monthly, quarterly, and annual plans.