ETAP CEO and Founder, Ibraheem Babalola
ETAP, an insurtech startup that makes it easier to buy and claim insurance, has secured $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. Working with a wide range of automotive value chain players, ETAP will also explore other opportunities to deliver much-needed insurance services for car owners in other countries across the continent.
Despite longstanding regulation 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 currently insured. The complexities of buying and claiming insurance has led to widespread apathy for traditional insurance companies and products, with many car owners opting to go without insurance. With ETAP, the entire process of 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 behaviour and drivers can earn Safe Driving Points that can be exchanged for shopping vouchers for the most in-demand retail outlets, fuel, cinema and concert tickets, and other exciting experiences.
Drivers also have flexible coverage options, including daily, weekly, monthly, quarterly and annual plans depending on their needs. In the unfortunate event of an accident, they simply need to take a picture of the affected part of the car via the app and the artificial intelligence processes the claim based on previously uploaded images. The app comes with geolocation tags, timestamps and other features to prevent fraudulent claims, as well as crash notification, emergency support and more.
Since launching in beta in November 2021, ETAP has insured more than 130,000 individual trips and over 500,000 kilometres in car journeys. Which represents 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, 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 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”.
B.TECH, Fawry expand Partnership to avail easier access to finance for Customers
Mastercard and OPay strategic partnership to grow cashless ecosystem and advance digital financial inclusion for millions
Mastercard and fintech giant OPay today announced a strategic partnership, which marks a significant boost for wider financial inclusion and economic prosperity by opening up digital commerce to millions of people across the Middle East and Africa. The collaboration enables OPay consumers and merchants in the region – including Algeria, Morocco, Egypt, Nigeria, Ethiopia, Kenya, Pakistan, South Africa and the UAE – to engage with brands and businesses anywhere across the globe, thanks to a Mastercard virtual payment solution linked to the OPay eWallet.
This partnership is the latest milestone in Mastercard’s emerging market strategy where the technology company is collaborating with growing Fintech’s such as OPay to expand access to digital payments, enable multiple lifestyle services, create new pathways to financial inclusion and support the next generation of super-apps. Consumers are increasingly looking for seamless user experiences on a single platform offering easier interactions to complete various day-to-day needs, including sending and receiving money, ordering food and groceries, organizing transport, lending, investing and listing items they wish to sell.
In the initial phase of this partnership, OPay customers will benefit from the Mastercard virtual payment solution linked to their OPay wallets, to shop at well-known global brands for leisure, travel, accommodation, entertainment, streaming services and more. The service is available regardless of whether or not the customer has a bank account. It also allows small business owners to purchase from suppliers abroad and pay with the secure virtual payment solution.
Amnah Ajmal, Executive Vice President for Market Development, Mastercard EMEA, said: “At Mastercard, our innovation strategy is rooted in partnerships to support inclusion at scale. Our partnership with OPay demonstrates our commitment to supporting payments providers across the world to create an interconnected global payments ecosystem that benefits an array of consumers with unique needs.”
Yahui Zhou, CEO of OPay, said: “As the leading fintech in the Middle East and Africa, we are delighted to be partnering with Mastercard as we continue on our journey to promote financial inclusion, helping to open up the global economy to more consumers and businesses across Middle East and Africa.”
Since its operations started in 2018, OPay’s active users have grown to 15 million in dozens of markets in which it operates. The company processes millions of transactions per day on average. In Nigeria alone, where OPay takes significant market share, users have saved billions of US dollars in the last four years through credit-linked savings accounts from their mobile wallets and small loans from lenders that use its platform.
Plans are in place to launch OPay services in other markets in the next three to five years, significantly driving the growth of digital inclusion and digital commerce, while at the same time widening OPay customer inclusion into the global economy. Mastercard has made a worldwide commitment to financial inclusion, pledging to bring 1 billion people and 50 million micro and small businesses – with a focus on 25 million women entrepreneurs – into the digital economy by 2025.
Afreximbank Appoints New FEDA Executives
African Export-Import Bank (Afreximbank) has announced the appointment of Ms. Marlene Ngoyi as the Chief Executive Officer of the Fund for Export-Development in Africa (FEDA), the Bank’s development-oriented subsidiary. Mr. Emmanuel Assiak has been appointed Chief Investment Officer.
Ms. Ngoyi, who hails from the Democratic Republic of Congo (DRC), has over 17 years of experience. She has worked with social enterprises, private companies, public-private partnerships, and governments across Africa to raise multi-billion-dollar debt, bonds, equity, quasi-equity, and foreign direct investment via bank syndication, capital markets, or private equity transactions to finance strategic investments.
Ms. Ngoyi has also served as the CEO of BGFI Investment Banking where she led the company in raising more than US$4 billion of capital and foreign direct investment for private and sovereign clients. Additionally, she was CEO of a commercial bank in the DRC, for two years, leading a financial turnaround by restoring its financial profitability. Under her leadership, the bank also became one of a select few banks in sub-Saharan Africa to complete and obtain an anti-money laundering 30000 certification for combating money laundering and terrorist financing.
Ms. Ngoyi graduated magna cum laude from Bentley University with a B.Sc. in Economics and Finance and holds a Master in Business Administration from Harvard Business School.
For his part, Mr. Emmanuel Assiak, who has been appointed FEDA’s Chief Investment Officer, joined FEDA a subsidiary of Afreximbank in 2019 as a director. As a pioneer staff, he played a key role in setting up and operationalising the organization. This includes putting in place the required service infrastructure (people, processes and systems) and leading the execution of FEDA’s first four equity deals and commitments in other strategic investments and partnerships amounting to about US$300 million. In his over 15 years of private equity experience, Mr. Assiak has played active roles in raising and deploying over US$1.5 billion in funds and equity transactions.
Mr. Assiak holds a First-Class Bachelor’s degree and a Masters in Economics from the University of Cross River State and University of Lagos, Nigeria respectively. He also holds an MBA with Distinction from Manchester Business School, United Kingdom. He is a Certified Accountant and an alumnus of the Coller Institute of Private Equity, London Business School.