Nigeria-headquartered ETAP, an insurtech startup, which makes it easier to buy and claim insurance, has secured $1.5 million in pre-seed funding.
The investment round was led by Mobility 54 (the Venture Capital arm of Toyota Tsusho and CFAO Group) that invested in Dutch startup Dott and othets along with participation from Tangerine Insurance, Graph Ventures (invested in Clubhouse), Newmont and other angel investors.
How will ETAP use the funding?
ETAP will use the fresh funds to grow its team and drive the adoption of much-needed car insurance across Africa. With this funding, it will support the rollout of ETAP’s game-changing app. ETAP will also explore other opportunities to deliver the much-needed insurance services for car owners in other countries across the continent.
According to Ibraheem Babalola, CEO and founder of ETAP said, “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.”
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.
Simplifies buying and claiming insurance
ETAP was founded by Ibraheem Babalola in November 2021. It makes the entire process of buying and claiming insurance happen exclusively on a smartphone. Eventually, it enables a seamless and enjoyable insurance experience for users.
The insurtech startup wants to resolve the challenge of buying insurance in Nigeria. As per reports, the complexities of buying and claiming insurance has led to widespread apathy for traditional insurance companies and products, with many car owners opting to go without insurance in the region.
Since its launch in beta in 2021, ETAP has insured more than 130,000 individual trips and over 500,000 kilometres in car journeys.
How does ETAP work?
ETAP uses machine learning to build intelligent risk profiles that determine appropriate premiums for each driver, thereby letting them 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.
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.
The app comes with geolocation tags, timestamps and other features to prevent fraudulent claims, as well as crash notification, emergency support and more. The ETAP app allows drivers to buy insurance in 90 seconds, complete claims in 3 minutes or less and get rewarded for good driving and avoiding accidents.