ETAP Secures $1.5 million Pre-Seed Financing to Drive Car Insurance in Africa

ETAP, an insurtech startup, made it easier to purchase and claim insurance. It has raised $1.5 million to expand its team and promote the adoption of car insurance in Africa.

ETAP will begin in Nigeria with the use of the new funding to roll out its game-changing mobile app. This allows drivers insurance in as little as 90 seconds and complete claims in less than 3 minutes. Drivers also get rewarded for driving safely and avoiding accidents.

Mobility 54, Toyota Tsusho’s Venture Capital arm, and CFAO Group partnered in the pre-seed funding round. Tangerine Insurance, Tangerine Insurance, Graph Ventures and other angel investors participated. ETAP will work with a broad range of automotive value chains players to explore additional opportunities to offer much-needed insurance services for car owner in other countries.

Only one fifth of Nigeria’s cars are insured, despite the fact that car insurance is compulsory under long-standing regulations and more than 100,000 accidents between January 2019 & December 2021.

Many car owners are choosing to forgo insurance because of the complexity involved in buying and claiming insurance. ETAP allows users to purchase and claim insurance using their smartphone. This makes it easy and enjoyable for them.

ETAP uses machine learning and machine learning to develop intelligent risk profiles. These profiles determine the right premiums for each driver. This allows drivers to drive safely while achieving lower premiums. The driving experience can be gamified using advanced telematics to improve driving behavior. Drivers can also earn Safe Driving Points which can be exchanged for fuel vouchers, shopping vouchers, or tickets for exciting events.

Flexible coverage options allow drivers to choose from daily, weekly or monthly plans. Drivers can simply take a photo of the damaged part of their car using the app in the event of an accident. The artificial intelligence will then process the claim based upon previously uploaded images. It also has geolocation tags, timestamps, and other features that can prevent fraudulent claims.

ETAP launched in beta in November 2021. It has since insured over 130,000 trips and more than 500,000 kilometres of car travels. This is more than eight times as much distance as 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 believe that rewarding drivers who do a good job can encourage better driving and make 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 solving many problems that affect the African automotive experience. We are thrilled to work with them and support their innovative approach to bringing more drivers across Africa. We believe that ETAP will engage with this important role and revolutionize the automotive insurance industry with their powerful technology.”

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