ETAP secures $1.5 million pre-seed funding to expand insurance penetration in Africa

Godfrey Elimian
*Set to expand insurtech penetration in Africa | *Creates Africa’s most powerful car insurance app
ETAP secures $1.5 million in pre-seed funding
ETAP product

ETAP, an insurtech startup that makes it easier to buy and claim insurance, secures $1.5 million in pre-seed funding to grow its team and drive the adoption of much-needed car insurance across Africa.

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

ETAP – Technext

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 will also explore other opportunities to deliver much-needed insurance services for car owners in other countries across the continent.

With ongoing efforts towards ensuring and promoting insurance of lives and and cars plying roads in Nigeria, insurance regulators in Nigeria still recorded over 100,000 car accidents from January 2019 to December 2021, with only one out of five cars being insured.

With the associated complexities of buying and claiming insurance in Nigeria for instance, which has led to widespread apathy for traditional insurance companies and products, and many car owners opting to go without insurance, ETAP makes the entire process of buying and claiming insurance happens exclusively on a smartphone, enabling a seamless and enjoyable insurance experience for users.

ETAP – Technext

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. Also 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.

Read also: Zambia-based card issuing startup, Union54, raises $12m in seed funding

ETAP – Technext

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

“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, 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.”

Ibraheem Babalola, CEO and founder of ETAP

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

It is worthy of mention that since launching in beta in November 2021, ETAP has insured more than 130,000 individual trips and over 500,000 kilometres in car journeys, which represents more than eight times the total distance of paved roads in Nigeria.


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