ETAP, a Nigerian insurtech startup that wants to make it easier to buy and claim insurance, has raised $1.5 million in pre-seed funding to grow its team and accelerate the adoption of much-needed car insurance in Africa, sStarting in Nigeria.
The firm will use the new funding to 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.Mobility 54 (the Venture Capital arm of Toyota Tsusho and CFAO Group) led the pre-seed funding round, which also included Tangerine Insurance, Graph Ventures (also invested in Clubhouse), Newmont, and other angel investors.
“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.” Ibraheem Babalola, CEO and founder of ETAP said.
“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.”
ETAP will explore other chances to provide much-needed insurance services for car owners in other countries across the continent by partnering with a wide range of automotive value chain players.
Despite the fact that automobile insurance is required by law and that over 100,000 car accidents were reported in Nigeria between January 2019 and December 2021, only one out of every five cars is currently covered.
The complexities of purchasing and obtaining insurance have resulted in widespread disdain for traditional insurance companies and products, with many car owners opting to drive without coverage.
The entire process of buying and claiming insurance with ETAP takes place entirely on a smartphone, providing users with a streamlined and enjoyable insurance experience.
ETAP uses machine learning to create intelligent risk profiles that identify the most appropriate premiums for each driver, helping them to save money by driving safely.
The driving experience is gamified using advanced telematics to enhance driving behavior, and drivers can earn Safe Driving Points that can be exchanged for shopping vouchers, fuel, movie and concert tickets, and other interesting events.
Depending on their needs, drivers can choose from daily, weekly, monthly, quarterly, and annual coverage options.
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.
To avoid false claims, the app includes geolocation tags, timestamps, and other features, as well as crash notification, emergency support, and more.
ETAP has insured over 130,000 individual trips and over 500,000 kilometers in car rides since its beta launch in November 2021, which is more than eight times the total mileage of Nigeria’s paved roads.
