Pula, a Kenyan-based InsurTech firm, has successfully concluded a Series B funding round, securing $20m.
The Series B funding round was led by global investment manager BlueOrchard, under its InsuResilience strategy, which focuses on providing climate insurance access to vulnerable populations in emerging markets, according to InsurTech Insights.
Additionally, the International Finance Corporation (IFC), the Bill & Melinda Gates Foundation, Hesabu Capital, and existing investors participated in this substantial investment.
The newly raised capital will enable Pula to establish new partnerships and expand its initiatives, particularly in livestock coverage. It also intends to further its efforts in Asia and Latin America, building upon its successful entry into these regions in 2021.
Founded in 2015, Pula has been dedicated to enhancing access to agricultural insurance for small-holder farmers in emerging markets, particularly across Africa, Asia, and Latin America.
The firm’s core mission revolves around providing agricultural insurance solutions to small-holder farmers, protecting them against losses from pests, diseases, and extreme weather events like floods and droughts.
With a track record of providing coverage to 15.4m farmers across targeted regions, Pula aims to extend its support to more farmers, including initiatives for livestock coverage.
The company’s approach involves collaborating with over 100 partners, including charitable organisations, banks, governments, and agricultural input companies, to integrate insurance into farm input costs or credit services. This network facilitates reaching even the most remote farmers, ensuring widespread access to insurance.
Pula CEO Thomas Njeru, stated, “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 100m 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.
“Research carried out by Pula in some African countries where we have delivered insurance shows that agricultural insurance helps smallholder farmers to on average increase investment in their farms by 16%, improve yields by 56%, and increase household savings by up to 170%. Also, an impact on farmers’ livelihoods can be seen through our partner insurer’s payouts – which have reached close to over $40m to 900,000 farmers since Pula’s inception to date.
“Lastly, our impact is reflected in our renewal rate and growth. Eighty percent of the farmer groups and aggregators that buy Pula-developed insurance products from our partner insurers renew the following year, which is above the industry average, and reflects our customers satisfaction with our comprehensive products.”
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