Pula, a Kenyan startup that offers insurance to small-scale farmers, aims to serve more than 100 million farmers in Africa after raising US$ 20 million in its Series B round.
Blue Orchard, a global investment manager, led the raise through its program called InsuResilience that aims to protect 97% of uninsured small-holder farmers in Africa from the vagaries of climate change. Other investors in the raise include the IFC, the Bill and Melinda Gates Foundation, and Hesabu Capital.Pula has established a foothold in about 22 countries, including Kenya, Nigeria, Mozambique, Malawi, and Zambia – serving more than 15 million farmers with affordable insurance against natural calamities.
“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,” said Richard Hardy, Private Equity Investment Director 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.
The IFC pledged US$ 225 million for early-stage startups in Africa after launching its Venture Capital platform in November 2022.
Pula’s Journey and Future
The startup was founded by Thomas Njeru and Rose Goslinga. The platform digitally collects important agricultural data such as weather patterns, pest and disease vulnerability, and market depreciation. This helps them gauge how to allocate insurance – either through subsidizing input costs or providing credit.
Pula has partnered with 70 insurance and 20 re-insurance companies since its foundation, its innovative strategies helping them to broaden their markets. Its distribution channel has also allowed investors from different avenues such as government, NGOs, banks, and agricultural input companies to collaborate in different capacities towards a single goal.
“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%,” said Njeru.
The advantages derived from the insurtech has streamlined Pula’s capacity to not only engulf new farmers in the program, but also retain farmers who renew their premiums. The startup now intends to expand its operations to other agriculture-based continents with uninsured farmers such as Asia and South America.
Pula also wishes to expand its livestock insurance program which they had kickstarted in Nigeria last year. This would prove successful if there is necessary financial injection and support from industry leaders.
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