Tech | Visa | Scholarship/School | Info Place

Pula raises $20 million in Series B funding to provide agricultural insurance to farmers in Africa, Asia and Latin America

Pula is a Kenya-based insurtech company that has been working since 2015 to enhance access to agricultural insurance for smallholder farmers in emerging markets, protecting them from losses caused by pests and diseases and/or extreme weather events such as floods and droughts.

The insurtech company has so far insured 15.4 million farmers in Africa, Asia and Latin America, and is seeking more funding after securing $20 million in Series B funding that will allow it to Forging new partnerships, including livestock insurance.

Global investment management firm BlueOrchard led the round through its InsuResilience strategy, which aims to provide climate insurance to vulnerable groups in emerging markets. IFC, through its $225 million venture capital platform, the Bill & Melinda Gates Foundation, Hesabu Capital and existing investors also participated in the round.

“Partnering with this group of like-minded investors to fuel Pula’s growth globally is a very exciting milestone in driving our Triple 100 vision, through which we intend to insure 100 million smallholder farmers.” Pula CEO Chief executive Thomas Njeru, who co-founded the insurtech company with Rose Goslinga, said: “Nine years ago, what started as an unconventional idea that many thought would not scale has now become a proven solution. program, addressing the actual needs of millions of small farmers in 22 countries. “.

Pula receives US$20 million in Series B financing

Pula co-founders Rose Goslinga and Thomas Njeru both have agricultural backgrounds. Image Source: Pula

Pula embeds insurance into partners’ products

Rather than selling insurance directly to farmers, Pula has built a distribution channel of more than 100 partners, including charities, banks, governments and agricultural input companies, to provide even hard-to-reach customers with insurance by embedding it into the policy. farmers to provide services. Agricultural input costs or credits.

Every product offered by Pula is customized to meet the needs of its customers and the needs of the beneficiary farmers. The products, underwritten by insurance and reinsurance companies, are designed (including premium setting) through Pula’s digital actuarial platform based on historical data including weather patterns and the frequency of events such as floods or droughts, harvests, losses and inputs.

One of its collaborations is a long-term partnership with the Zambian government, where the insurtech embeds insurance premiums into fertilizer and seed packages, benefiting farmers across the country. In Ethiopia, it worked with the World Food Program, German development bank KfW and a local insurance company to integrate insurance into an input voucher scheme covering 122,000 farmers. The impact is set to be felt after an outbreak of wheat rust in the Amhara region, where Pula will pay its largest insurance payout to date, estimated at $800,000.

Pula said they were seeing increased investment, production and savings from farmers using their products, underscoring the benefits agricultural insurance brings to emerging markets such as Africa, where small-scale farmers contribute 70% of the food supply but only The 1% are covered. High cost, lack of awareness and opportunity are some of the barriers to accessing agricultural insurance.

“Pula’s research in some of the African countries where we provide insurance shows that agricultural insurance helps smallholder farmers increase farm investment by an average of 16%, increase yields by 56%, and increase household savings by up to 170%. In addition, our partner insurance The impact on farmers’ livelihoods is also reflected in the company’s compensation payments – since Pula’s inception, the amount has been close to US$40 million, benefiting 900,000 farmers,” said Njeru.

“Ultimately, our impact is reflected in our renewal rates and growth. 80% of farmer groups and aggregators who purchased Pula-developed insurance products from our partner insurers renewed their policies the following year, which is higher than the industry average, reflecting our customers’ satisfaction with our comprehensive offering.”

Building on the success of its crop insurance products, Pura will launch livestock insurance in countries including Kenya upon completion of a pilot program launched in Nigeria last year. Pula, through its insurance partners, has been providing comprehensive insurance against banditry, disease and animal death to rural households in Nigeria. It is also doubling down on Asian and Latin American markets it will enter in 2021.

#Pula #raises #million #Series #funding #provide #agricultural #insurance #farmers #Africa #Asia #Latin #America

Leave a Reply

Your email address will not be published. Required fields are marked *