Cape Town-based fintech company CompariSure has secured a multimillion-rand funding deal for a minority stake from venture capital (VC) firm UW Ventures, in collaboration with investment firm Allan Gray.
Founded in November 2017 by CEO Jonathan Elcock and CFO Matt Kloos, CompariSure is a financial services provider that distributes financial services products via its proprietary chatbot that leverages platforms like Facebook Messenger and WhatsApp to compare financial products.
UW Ventures intends to support CompariSure with its scaling ambitions, including into international markets.
The new funding deal comes off the back of CompariSure’s first external investment deal concluded in August 2019 with 4Di Capital, an early-stage tech VC firm.
“At the time the original deal was concluded, 4Di was eager for us to find another institutional investor to diversify the shareholder base, and we are delighted to now have UW Ventures and Allan Gray on board,” notes Kloos.
“In combining 4Di’s deep understanding of insurtech with Allan Gray’s extensive financial services expertise and UW Ventures’ strategic and business support, we feel our investor base could neither be stronger nor more experienced.”
The fintech firm recently started licensing out its chatbot technology to insurance providers that are looking to enhance their own digital capabilities.
Elcock adds that having partnered with SA’s top insurance providers, including the likes of Sanlam, Old Mutual and Momentum Metropolitan, CompariSure is “disruption-proofing” insurers by bringing them to the forefront of the new digital age.
“We conclude over 70% of our sales without human engagement, at all hours of the day and night, and have seen record volumes through the challenging and unprecedented COVID-19 pandemic.
“This growth capital funding has given us significant runway and will allow us to explore new strategic initiatives, such as new product and industry use-cases for our chatbot, as well as opportunities outside of SA,” according to Elcock.
Edgar Loxton, a director at Allan Gray, says CompariSure’s chatbot technology has the potential to create great value for society by dramatically increasing access to insurance and other financial products.
“We are excited to be part of the CompariSure team and confident that together we will build a successful business, both in South Africa and abroad.”
“The manner in which financial products are distributed and serviced is entering a new paradigm,” comments Harry Apostoleris, director at UW Ventures.
“We’re excited to partner with CompariSure’s dynamic management team and existing investor base in realising the company’s vision, which is to empower people to make better financial decisions and broaden access to quality financial services products.”
Loxton and Anton Van Vlaanderen, partner at 4Di Capital, will sit on the CompariSure board.
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