Kenya’s Pula Secures $20M to Expand Farmer Insurance Accessibility

Pula, a Nairobi-based agricultural insurance and technology company run by Kenyan entrepreneur Thomas Njeru, has completed a Series B investment round worth Ksh2.6 billion ($20 million). The project intends to strengthen support for smallholder farmers in emerging markets, protecting them from climate-related hazards.

Global impact investment manager BlueOrchard led the Series B funding round through its InsuResilience approach. This effort aims to protect disadvantaged communities and micro-entrepreneurs from the negative effects of climate change by increasing access to climate insurance.

Pula’s successful financing round demonstrates the growing understanding of the critical role insurtech plays in improving climate resilience for smallholder farmers. With smart alliances and creative solutions, the organization is positioned to make substantial contributions to the livelihoods of millions in Africa, Asia, and Latin America.

The International Finance Corporation (IFC), a World Bank Group member, and the Global Agriculture and Food Security Program’s Private Sector Window (GAFSP) also got involved.

The IFC’s financial support is part of its $225 million venture capital platform, which was launched in November 2022 to support early-stage firms promoting developmental progress through technology advances.

Richard Hardy, BlueOrchard’s Private Equity Investment Director for Africa, praised Pula for its creative business approach. He praised its effective use of artificial intelligence, on-site data collection methods, mobile-based registration systems, remote sensing, and end-to-end automation tools.

Hardy applauded Pula’s digital platform for allowing for seamless expansion into new countries while eliminating startup costs, confirming the company’s strong track record in agriculture insurance.

Pula’s revolutionary method makes insurance more accessible by bundling it with key items such as seeds and finance, establishing it as the largest insurtech in Africa’s climatic and agricultural insurance scene. The new money will enable Pula to develop its operations and considerably expand its reach over the next five years.

Since its start, Pula has collaborated with over 70 insurance and reinsurance firms, as well as 100 distribution partners worldwide. Since 2015, Pula has been led by CEO and co-founder Thomas Njeru, and its success has been defined by pioneering attempts to bring new insurance products to neglected populations.

Thomas Njeru, a well-known entrepreneur in East Africa, expressed his excitement over the milestone. He described the company’s objective to provide insurance coverage to 100 million smallholder farmers worldwide.

Njeru recognized the critical role that strategic partners such as BlueOrchard, the Bill & Melinda Gates Foundation, IFC, and Hesabu had in accelerating Pula’s economic trajectory. He emphasized Pula’s commitment to building resilient and climate-secure food systems through smart partnerships and innovative solutions.

Written by PH

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