Kenya-based InsurTech startup Lami Technologies has collected $3.7m in its seed extension round as it looks to expand across Africa.
Harlem Capital, an early-stage venture firm aimed at technology startups with minority and women founders, served as the lead investor.
Commitments also came from Newtown Partners, Social Impact Capital partner Peter Bruce-Clark, InsureTech Connect’s Caribou Honig and Jay Weintraub and more.
Funds from the round will help Lami bolster its business, product and technology development, as well as expand into Egypt, Nigeria and Uganda.
Lami initially raised $1.8m in its seed round last year. The capital was supplied by Accion Venture Lab, Consonance, P1 Ventures, Acuity Ventures, The Continent Venture Partners and Future Africa.
Founded in 2018, Lami aims to address the problem of low insurance uptake in Africa, which it claims is driven by the slow pace of innovation in the sector, which has left the continent with sluggish and traditional paper-based systems.
Its goal is to bridge the gap through technologies that make insurance affordable through bitesize premiums.
As an example, its partnership with logistics startup Sendy led to the development of a cover that insurers goods per trip, with premiums starting at $0.21 for goods valued at $85. The product covers goods worth up to $7,600 and claims can be processed in less than one week.
The startup is currently working with underwriters in different markets to create an all-risk cover for buy now, pay later transactions. This insurers against payment default through death, disability, job loss and many other circumstances.
Speaking on its investment into Lami, Harlem Capital principal Gabby Cazeau said, “We believe the next wave of fintech will embed financial products and services like insurance into a customer’s purchase experience.
“Lami’s approach to serving people through strategic partners in e-commerce and finance is the best way to build trust with users and deliver insurance in a seamless, accessible way to Africans across the continent. Lami’s impressive growth to date shows that this resonates with customers and have a strong trajectory as they expand across the continent.”
Earlier in the year, Lami acquired Bluewave Insurance Agency, an InsurTech startup that leverages mobile technology to reach the underserved population, tapping into Africa’s insurance gap. Through the acquisition, Lami hopes to grow its presence in Africa.
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