Agri insurance platform Pula closes $20m Series B funding
The funding round was led by BlueOrchard, via its InsuResilience strategy.
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Agricultural insurance and technology company Pula has closed a $20 million Series B fundraising round.
The funding round was led by BlueOrchard, via its InsuResilience strategy. Other investors include the International Finance Corporation (IFC), the Bill & Melinda Gates Foundation, Hesabu Capital, and existing shareholders. The aim of the strategy is to protect vulnerable people and microentrepreneurs in emerging markets from the effects of climate change by providing access to climate insurance.
By bundling insurance with other essential products like seeds and credit, Pula is making insurance more affordable and accessible. This strategy has positioned Pula as the largest insurtech in the climate and agricultural insurance space in Africa.
“What sets Pula apart is their innovative business model, leveraging artificial intelligence, on the ground data collection mechanisms, mobile-based registration systems, remote sensing, and end-to-end automation tools. Their digital platform has enabled them to expand into new geographies with ease and efficiency, all while keeping setup costs low. The Pula team has an unrivaled track record in the agricultural insurance space and is deeply aligned with our mission and strategy,” said Richard Hardy, private equity investment director for Africa at BlueOrchard.
“By combining disruptive digital platforms with crucial agriculture insurance, we can improve the livelihoods of millions of smallholder farmers across Africa and boost food security. IFC is investing in Pula to make insurance for farmers in Africa more accessible and affordable, so it works for them,” said Mary Porter Peschka, IFC regional director for Eastern Africa.
“Hesabu Capital invests in fast growing tech-enabled companies that are looking to scale and we believe that Pula strongly fits this mandate. Pula is an innovator in the global insurtech sector which has developed ground-breaking climate risk cover for small scale farmers and aggregates the insurance cover for these farmers which is then underwritten by Insurance and Reinsurance Companies. We look forward to partnering with Pula to facilitate their growth and enable them to achieve their market potential,” said Kitili Mbathi, managing director of Hesabu Capital.
“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. We are particularly excited to be working with BlueOrchard, the Bill & Melinda Gates Foundation, IFC and Hesabu to benefit from their industry expertise and networks as we grow to fulfil our joint ambition of more resilient and climate secure food systems,” said Thomas Njeru, CEO and co-founder of Pula.
Since its inception, Pula has partnered with over 70 insurance, 20 reinsurance companies, and 100 distribution partners across the globe to deliver their insurance solutions. This has also helped to develop the capacity of local insurance and reinsurance players to understand and underwrite agricultural insurance for smallholder farmers. Currently, Pula’s main markets span across Kenya, Nigeria, Zambia, Malawi, Mozambique, and they are expanding their presence in Asia and Latin America. These markets are managed from Switzerland and coordinated from the Kenya service centre.
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