South African fintech startup CompariSure has raised funding from UW Ventures in partnership with Allan Gray to help it increase uptake of its chatbot solutions.
Founded in 2017, CompariSure distributes financial services products via its proprietary chatbot technology that leverages platforms like Facebook Messenger and WhatsApp, and has already “chatted” to over 250,000 South Africans and helped people access a broad range of financial products.
The company raised funding from 4Di Capital in August of last year, a deal which was unannounced at the time, and has now added UW Ventures and Allan Gray to its investor pool. Matt Kloos, co-founder of CompariSure alongside Jonathan Elcock, said 4Di had been keen for it to find another institutional investor to diversify its shareholder base.
“We are delighted to now have UW Ventures and Allan Gray on board,” he said. “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.”
CompariSure has recently also started licensing out its chatbot technology to insurance providers looking to enhance their own digital capabilities, has has partnered with South Africa’s top insurance providers, including the likes of Sanlam, Old Mutual, and Momentum Metropolitan.
Elcock said the startup was “disruption-proofing” insurers by bringing them to the forefront of the new digital age.
“We conclude over 70 per cent 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,” he said.
“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 South Africa.”
Edgar Loxton, a director at Allan Gray, said CompariSure’s technology had 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,” he said.
UW Ventures intends on supporting CompariSure with its scaling ambitions, including into international markets.
“The manner in which financial products are distributed and serviced is entering a new paradigm. CompariSure, with its leading technology platform, is well-positioned to play a substantial role in this transition,” said 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.”