Fintech company CompariSure raises US$980k to expand in South African market

SOUTH AFRICACompariSure, a financial services firm that distributes financial services products via its unique chatbot technology, has raised R15 million (US$980k) in pre-Series A fundraising from HAVAIC and 4Di, with HAVAIC heading the round.

The funds will be used to help CompariSure expand its footprint in the South African market.

“This investment round is an important milestone for us and will allow us to continue reshaping the way South Africans interact online,” Matt Kloos, CompariSure co-founder and CFO, said.

“The HAVAÍC team brings a wealth of expertise and experience to the table, and we are very excited to have them joining as a shareholder and board member.

“We are also incredibly grateful for the ongoing support from our earliest backers 4Di Capital, whose follow-on investment signals a strong, reaffirmed belief in what we are building at CompariSure.”

The startup has garnered considerable traction since it was founded. It has handled over 120 million messages and sold over 50,000 insurances via chat since 2017.

“HAVAÍC is excited to have led the R15m pre-Series A investment round in CompariSure. Headed up by a strong team of founders, with a product that’s not only achieving significantly higher conversion rates but also more than halving the cost of acquisition, their offering is a key value add to companies selling a product,” Kiara Suttner-Tromp, principal at HAVAÍC, said.

“Furthermore, with the company already demonstrating strong traction in the local insurance market and with significant opportunities to grow both vertically and horizontally, we are excited for what the future holds for CompariSure and to be a part of their journey.”

CompariSure’s most recent funding round, which took place in May 2020, was headed by UW Ventures in collaboration with Allan Gray. 4Di Capital made its first investment in August of this year.

CompariSure has shown excellent growth since our initial investment in 2019,” comments, “so making the follow-on investment decision was an easy one,” Anton van Vlaanderen, partner at 4Di Capital, said.

“Not only has CompariSure’s technology matured significantly over recent years, but the company has impressed us by continuing to attract top talent to its ranks, most crucially in senior leadership positions.

“At 4Di we look to back local entrepreneurs building new solutions with global relevance, and in CompariSure we see a team with a vision and technology to achieve just that.”

CompariSure, which was formed in November 2017 by CEO Jonathan Elcock and CFO Matt Kloos, uses its unique chatbot technology to distribute financial services goods through its chatbot-driven marketplace, which uses platforms like Moya, Facebook Messenger, and WhatsApp. CompariSure performs the role of a digital broker.

According to the company, it is looking to expand outside of financial services, and has already released services to help with call centre automation, sales force management, and market research.

CompariSure recently launched a job creation and skills development program in Strand, Khayelitsha, Hammanskraal, Daveyton, and Tembisa, allowing anybody with a smartphone to drive traffic to the company’s chatbot marketplace and earn referral commissions.

“Over 95% of our users are buying a financial product online for the first time in their lives, a true game-changer in terms of giving every South African access to quality financial services products,” comments CompariSure founder and CEO Jonathan Elcock.

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