Kenyan InsurTech Turaco has raised $10M in a Series A funding round to drive mass market insurance adoption in Africa.
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Kenya-based InsurTech startup Turaco has secured $10M in its Series A round led by AfricInvest, through its Cathay Africinvest Innovation Fund (CAIF), and Novastar Ventures with participation from Enza Capital, Global Partnerships, Zephyr Acorn, Operator Stack, Asi Ventures Limited, and Push Ventures. Turaco is aiming to introduce new technologies and products to increase the number of insured people. The startup has created an expansive distribution channel through its B2B2C model that is enabling it to tap into a large pool of potential customers in its markets, providing insurance to a group that has never consumed it before.
The FinTech industry in Kenya has spiked up this year with startups coming up with solutions to digitize and bank the unbanked population of the region. This year the funding in the industry has seen an upsurge recording an increase of 335% compared to last year, as evident in the Advanced Analytics real-time chart here. Kenya was the fourth most funded FinTech geography across the Emerging Venture Markets in the first half of the year with funds being directed towards Alternative Payment platform Dash and crypto exchange platform Mara.
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Through API integration Turaco’s partners like PayGo companies, ride-hailing platforms, Fintechs, and micro-finance institutions are able to bundle insurance with their core products or services. The insurtech works closely with each partner, to design and distribute its insurance products as a white-labeled offering. “We want to insure a billion people in the next 25 years and that’s what we’re building towards. It’s an audacious goal in every way and I can’t even really describe how to get there, but I have a clear vision of insuring 100 million people. Getting to that next stage of growth means working with some of the largest brands in the world. We have the right mix of talent, ambition, technology and vision to get us there. But it’s a long road ahead of us for sure,” Ted Pantone, Turaco co-founder and CEO, told TechCrunch.
The startup, which also has operations in Uganda and Nigeria, says it has entered its growth phase and is eyeing more partnerships in a bid to drive mass market insurance adoption in Africa. “As the insurance penetration in Sub-Saharan Africa remains below 3%, one of the lowest rates globally, we believe Turaco has developed the tools and know-how to fill this gap and reach low-income earners with products adapted to their needs, thus being a critical part of the push to help shield the most disadvantaged from unforeseen financial burdens and shocks,” AfricInvest and co-head of CAIF, Partner Yassine Oussaifi, concluded.
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