Kenyan Insurtech Company Pula Raises US$20 Million Series B Funding to Expand Its Reach Across Africa
Kenyan Insurtech company Pula has recently closed a Series B funding round, after raising $20 million. The infusion of the capital according to the company, will be geared towards expanding its reach across Africa, particularly targeting farmers, while also forging strategic alliances to further bolster their presence in the region.
The funding round was led by global investment manager BlueOrchard, leveraging its InsuResilience strategy aimed at providing vulnerable populations in emerging markets with access to climate insurance. Additionally, the International Finance Corporation (IFC), the Bill & Melinda Gates Foundation, Hesabu Capital, and existing investors participated in this significant investment round.
Speaking on the funds raised, CEO of Pula Thomas Njeru said,
“Partnering with this group of like-minded investors to boost the growth of Pula globally is a very exciting milestone in driving our triple 100 vision, through which we intend to bring insurance to 100 million smallholder farmers. What started nine years ago as an unconventional idea that many deemed un-scalable is now a proven solution that has solved real needs for millions of smallholder farmers across 22 countries”.
Pula reaches farmers in 22 countries through a distribution channel of over 100 partners, embedding insurance offers in farm input costs or credit via its digital actuary platform based on historical data such as weather patterns. It employs this strategy instead of selling insurance directly to farmers.
The company tailors each of its products to align precisely with the requirements of its clientele and the specific needs of the farmers they serve. Leveraging a digital actuary platform, Pula meticulously designs its offerings, including premium structures, in collaboration with insurance and reinsurance partners. Drawing insights from comprehensive historical data, such as weather trends, occurrences of natural disasters like floods or droughts, harvest cycles, and input utilization, Pula ensures that its products are finely tuned to mitigate risks and optimize outcomes for farmers.
Pula’s track record includes providing insurance coverage to 15.4 million farmers across the targeted regions. With this latest infusion of capital, the company aims to establish new partnerships, including initiatives for livestock coverage, further extending its support to farmers in need and reinforcing its commitment to safeguarding the livelihoods of small-holder farmers against agricultural uncertainties.
