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ETAP, a Nigerian insurtech startup led by tech entrepreneur Ibraheem Babalola, has raised $1.5 million in pre-seed funding to expand its team and drive the adoption of much-needed car insurance throughout Africa.
Babalola, a Nigerian entrepreneur with extensive experience in building and assisting financial services and proptech startups, founded ETAP after becoming frustrated with the complexities and delays involved in purchasing insurance in Nigeria.
“The concept arose from being a dissatisfied customer; my insurance would expire, and I would not receive a notification to renew it; I always had to call a guy who would help me renew it.” I thought there must be a better way,” Babalola explained.
Mobility 54 led the $1.5-million capital injection that the insurtech startup recently received from its pre-seed funding round (the venture capital arm of Toyota Tsusho and CFAO Group).
Tangerine Insurance, Graph Ventures (which previously invested in Clubhouse), Newmont and other Angel investors also participated in the funding round.
The $1.5-million investment will be used to support the launch of ETAP’s game-changing app, which allows drivers to buy insurance in 90 seconds, complete claims in three minutes or less, and be rewarded for safe driving while avoiding accidents.
“Like any other digital service, we believe Nigerians should be able to buy and claim car insurance without having to ‘call a guy,” Babalola, ETAP CEO and founder, said.
He went on to say that rewarding good drivers can spur better driving and make roads safer for both pedestrians and motorists.
Yumi Takagi, project manager at Mobility 54, stated: “ETAP is addressing many challenges that impact the African automotive experience, and we are excited to support and collaborate with them to bring their innovation to more drivers across the continent.”
“We believe that ETAP will take on this important role and use their powerful technology to revolutionize the automotive insurance industry,” he said.
