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


ETAP, Insurtech startup EZ-Insurance, which makes it easier to purchase and claim insurance, has received $1.5 million pre-seed financing to expand its team and promote the adoption of car insurance in 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.

The pre-seed round of funding was managed by Mobility 54 (The Venture Capital arm of Toyota Tsusho & CFAO Group), which includes participation from Tangerine Insurance, Graph Ventures and Tangerine Insurance (invested into Clubhouse), Newmont, and other angel investors.

ETAP is working with many automotive value chain players and will explore other options to provide much-needed insurance services to car owners in other countries on the continent.

In Nigeria, the insurance regulators have still registered over 100,000 car accidents in Nigeria between January 2109 – December 2021. One in five cars was not insured despite their ongoing efforts to ensure and promote insurance for lives and cars on Nigerian roads.

ETAP allows users to purchase and claim insurance on their smartphones, eliminating the complexities that come with buying and claiming in Nigeria.

ETAP uses machine-learning to create intelligent risk profiles for drivers that determine the appropriate premiums. This allows them to drive safely and earn lower premiums. The advanced telematics technology can also be used to enhance driving behaviour. Drivers can earn safe driving point that can be used to purchase shopping vouchers at the most popular retail outlets, fuel, and concert tickets as well as other exciting experiences.

Flexible coverage options are available to drivers, which include daily, weekly and monthly plans, as well as quarterly, quarterly, annual, and annual plans, depending on their needs. If there is an unfortunate accident, drivers will simply need to snap a picture of the vehicle in question via the app. Artificial intelligence then processes the claim using images previously uploaded.


Geolocation tags, timestamps, and other features are included in the app to help prevent fraudulent claims.

“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.”

Ibraheem BabalolaETAP’s founder and CEO,.

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 worth mentioning that ETAP, which was launched in beta in November 2021 has covered more than 130,000 trips and more than 500,000 kilometres of car travels. This represents eight times the distance of all paved roads in Nigeria.

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