Black-Owned Insurtech, Etap, Secured $1.5M Pre-Seed To Make Buying Car Insurance Easier
Insurtech Etap is now on a mission to expand its services across the West African country following a $1.5 million pre-seed funding round led by Mobility 54; the venture capital arm of Toyota Tsusho and CFAO Group.
Founder and CEO Ibraheem Babalola started building Etap last year when he found himself frustrated by the complexities and delays involved in purchasing insurance.
“The idea itself is from being a frustrated customer; my insurance would expire and I wouldn’t get a notification to renew it…I always had to make a call to a guy who would help me renew it. I thought that there is a way to do it better,” Babalola told TechCrunch, adding that policyholders receive notifications when their coverage expires, and can also opt for automatic renewal.
His startup now claims to enable motor vehicle owners to purchase insurance in 90 seconds and complete claims in three minutes.
Etap launched the beta version of its app in November last year, enabling people to buy insurance according to their needs; per trip, daily, monthly or yearly, according to reports.
The startup also tailors the price of its products according to driver behavior and has gamified the products too, as customers earn and redeem points based on their history.
To prevent fraudulent claims, the app comes with geolocation tags, timestamps, and other features like crash notifications.
Speaking on the investment, Mobility 54’s project manager, Yumi Takagi, 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.”