Kenyan insurtech Turaco raises $10 million in funding, hits 1 billion user target • TechCrunch


Insurance coverage in Africa is currently less than 3 percent, due to slow innovation in the sector. They rely on traditional systems that involve agents and a lot of paperwork to sign up new customers, which limits the reach of many customers and makes it difficult for them to pick up their products. However, a tipping point is underway as insurtechs such as Kenya-based Insurtech Turaco introduce new technologies and products that disrupt the market.

Through the B2B2C model, Turaco has developed a wide distribution that allows it to reach more customers in its markets and provides insurance to a group that has never eaten before.

Driven by a viable business model, the startup, which also operates in Uganda and Nigeria, has entered a growth phase and is looking at additional partnerships in an effort to drive mass market insurance adoption in Africa.

The startup’s planned growth comes on the back of $10 million in Series A equity funding from Cathay Afriinvest Innovation Fund (CAIF) and Novastar Ventures in a round led by Africa Invest. Enza Capital, Global Partnerships, Zephyr Acorn, Operator Stack, Ace Ventures Ltd and Push Ventures also participated in the round, bringing the total funding raised by Turaco to 13.3 million.

“We want to insure one billion people in the next 25 years, and that’s what we’re building for. It’s an audacious goal in every way, and I can’t even say exactly how to get there, but I have a clear vision of insuring 100 million people. Getting to the next level of development means world It means working with the biggest brands out there. We have the right mix of talent, passion, technology and vision to get there, but we definitely have a long way to go,” Ted Panton, founder and CEO of Turaco, told TechCrunch.

Pantone co-founded Turacon with Peter Gross after a stint at MIC Global (Micro-Insur), a technology-enabled embedded insurance provider.

“Giving insurance to a billion people is what I want to do for the rest of my life, and this can be expanded both in terms of social impact, as well as in business,” he said.

Through API integration, Turaco partners such as solar PAYGO companies (MKOPA), ride-hailing platforms (SafeBoda), fintechs and microfinance institutions can integrate insurance into their core products or services.

Insurance works closely with each partner to design and distribute its insurance products as a “white-labeled offering.” Customers can buy life, property, medical and auto insurance for as low as $0.2.

When we sell to these partnerships, we get north of a 50% conversion rate, because the value proposition makes sense. And people are very aware of risks like medical emergencies and needing to clear that hospital bill. Desire is not an issue. People want to buy insurance if it’s properly priced and sold in a hassle-free and efficient manner. So, a lot of our innovation is really around the distribution model. “That’s the key we’re fixing to get people to say yes and then pay for insurance,” Pantone said.

The insurance has so far reached more than half a million customers, of which 268,000 are active. Its users have grown 300% since 2020. Pantone attributes its growth to its business model and value proposition, which it says works for both partners and end users.

“With insurance coverage in sub-Saharan Africa at less than 3%, one of the lowest globally, we believe Turaco has developed the tools and expertise to help fill this gap and provide low-income people with products tailored to their needs. Loads and shocks are an important part of the push to save,” said Africa Invest and CAIF Co-Head, Partner Yasin Osusefi, in a statement.



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