The US$1.5 million investment from Invenfin, the venture and growth capital arm of Remgro Limited, headquartered in South Africa, will enable the insurtech to begin its scaling strategy.
Launched in South Africa in 2016, Root distinguishes itself with an innovative low-code platform, empowering the creation of contemporary digital insurance products. These products are strategically crafted for seamless distribution through direct channels, as well as affinity and embedded platforms at a significant scale.
Having initially secured external funding, including support from Invenfin, in 2021, Root is now set to leverage its latest financial injection. This recent investment is poised to propel Root’s rapid expansion plans in the UK and Europe, marking a significant milestone in the company’s journey.
Speaking about the plans, Louw Hopley, Co-Founder at Root, commented: “We want to continue to expand in the UK 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 realising 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 at Invenfin, explained: “Root is a great example of the type of company that Invenfin looks to invest in: 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.”
He added: “We’re excited to back Root again following our first investment in 2021, as it accelerates its growth in the UK and beyond.”