ETAP insurtech startup led by Ibraheem Babalola secures $1.5m pre-seed funding to boost car insurance penetration in Africa
From Nigeria, the new funding will support the rollout of ETAP’s groundbreaking app, which allows drivers to purchase insurance in 90 seconds, file claims in 3 minutes or less, and be rewarded for good driving and to avoid accidents. Working with a wide range of automotive value chain players, ETAP will also explore other opportunities to provide much-needed insurance services to car owners in other countries across the continent.
Only one in five cars in Nigeria is currently insured, and the complexities of buying and claiming insurance have led to widespread apathy for traditional insurance companies and products, with many car owners choosing not to. not have insurance. With ETAP, purchasing and claiming insurance is done exclusively on a smartphone, enabling a seamless and enjoyable insurance experience for users.
Since its launch in beta in November 2021, ETAP has provided over 130,000 individual journeys and over 500,000 car journeys, which is more than eight times the total distance of paved roads in Nigeria.
According to Ibraheem Babalola, CEO and Founder of ETAP, “Like any other digital service, we believe that Nigerians should be able to purchase 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. That’s why we have created the most powerful car insurance app in Africa, and we are delighted to have raised these funds to attract more users Too often, buying and claiming insurance in Africa is so disconnected from the day-to-day reality of most people, but we are changing that and making the process just as enjoyable as any other experience consumers access. on their 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 them and work with them to bring their innovation to more drivers across the continent. We believe ETAP will play this important role and revolutionize the auto insurance industry with its powerful technology.
ETAP uses machine learning to create intelligent risk profiles that determine appropriate premiums for each driver, allowing them to earn lower premiums while driving safely. Using advanced telematics, the driving experience is gamified to improve driving behavior, and drivers can earn safe driving points that can be redeemed for vouchers for popular outlets, from fuel, movie 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 simply take a photo of the affected part of the car through the app and the artificial intelligence processes the claim based on the previously uploaded images. The app comes with geolocation tags, timestamps and other features to prevent fraudulent claims, as well as accident notification, emergency assistance and more.