Etap closes $1.5 million pre-seed round to drive car insurance penetration in Africa

Etap closes $1.5 million pre-seed round to drive car insurance penetration in Africa

Etap, a Nigeria-based insurtech startup that makes it easier to buy and claim insurance, has raised $1.5 million in pre-seed funding to grow its team and drive the adoption of much-needed car insurance across Africa.

Starting in Nigeria, the new funding will 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.

The pre-seed funding round was led by Mobility 54 (the Venture Capital arm of Toyota Tsusho and CFAO Group), with participation from Tangerine Insurance, Graph Ventures (invested in Clubhouse), Newmont, and other angel investors. ETAP will work with a wide range of automotive value chain players and explore other opportunities to deliver much-needed insurance services for car owners on different continents.

Despite longstanding regulations making car insurance compulsory and more than 100,000 car accidents reported between January 2019 and December 2021, only one in five cars in Nigeria are insured. Moreover, the complexities of buying and claiming insurance have led to widespread apathy for traditional insurance companies and products, with many car owners opting to go without insurance. With ETAP, buying and claiming insurance happens exclusively on a smartphone, enabling a seamless and enjoyable insurance experience for users.

ETAP uses machine learning to build intelligent risk profiles that determine appropriate premiums for each driver, allowing them to achieve lower premiums by driving safely. Using advanced telematics, the driving experience is gamified to improve driving behavior, and drivers can earn Safe Driving Points exchanged for shopping vouchers for the most in-demand retail outlets, fuel, cinema and concert tickets, and other exciting experiences.

Depending on their needs, drivers also have flexible coverage options, including daily, weekly, monthly, quarterly, and annual plans. In the unfortunate event of an accident, they need to take a picture of the affected part of the car via the app, and artificial intelligence processes the claim based on previously uploaded images. The app comes with geolocation tags, timestamps, and other features to prevent fraudulent claims, crash notifications, and emergency support.

Since launching in beta in November 2021, ETAP has insured more than 130,000 individual trips and over 500,000 kilometers of car journeys, representing more than eight times the total distance of 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 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, buying and claiming insurance in Africa is so out of touch with the everyday reality of most people. Still, we are changing the game and making the process just as enjoyable as any other experience consumers access on the mobile phone.”

Yumi Takagi, Project Manager at Mobility 54, said, “ETAP addresses many challenges that impact the automotive experience in Africa. 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 in this vital role and revolutionize the automotive insurance industry with its powerful technology.

Featured image:  Ibraheem Babalola, CEO and founder of ETAP.