Insurtech platform Turaco, based in Kenya, has announced the closing of a US$10 million Series A equity fundraising transaction to support its expansion through strategic alliances. Turaco drives mass market insurance penetration.
Turaco, a distributor, broker, and crucial customer contact between the underwriter and the final customer, was established in 2019. With its B2B and B2B2C business models, it partners with leading IT firms in emerging economies that have a sizable customer base or workforce, including some of the continent’s most reputable names like Sun King, One Acre Fund, Tugende, M-KOPA, and VisionFund.
The insurtech has created and provided a suite of customized medical, life, asset, and auto insurance packages through its active partnerships that have already covered more than half a billion dollars in insurance costs. that now encompass more than 500,000 lives in Nigeria, Kenya, and Uganda.
AfricInvest, through the Cathay Africinvest Innovation Fund, and current investor Novastar Ventures took the lead in the US$10 million Series A investment. Enza Capital, Global Partnerships, Zephyr Acorn, Operator Stack, Asi Ventures Limited, and Push Ventures also participated in the round.
In Africa, there are more than 500 million cellphone subscribers, the majority of whom lack insurance. With the most recent round of finance, Turaco is well-positioned to take on this untapped market and intensify its expansion ambitions through strategic alliances.
Turaco integrates its service as a white-labelled option that is bundled with a partner’s primary product or service and integrates with their current payment procedures in order to reach underserved customers and low-income earners. Turaco helps businesses to effectively and without additional risk or expense integrate insurance into their products and services. Turaco has a powerful API integration that enables seamless collaboration with its external partners.
Since its debut, the technology-enabled insurance platform has expanded to take the lead among cutting-edge insurance solutions. Its services are reasonably priced at roughly $2 per month, come with clear terms and conditions, and include a fully digitalized claims process that enables claimants to file by WhatsApp or phone call and distributes funds via mobile money in less than three days.
“We are happy to promote insurance adoption, particularly among low-income individuals.
90 per cent of our customers have never had insurance before, but the surprising thing is that people really want to buy insurance! They just don’t have easy access to products that really work for them. This investment enables us to scale our business to serve millions of insurance customers across our current markets and beyond. We are thrilled to have these great new investors join our team for this next season of growth,” said Turaco CEO and co-founder Ted Pantone.
Patricia Rinke, investment officer at AfricInvest, said her firm’s interactions with Pantone and his team had revealed “a great vision and flawless execution coming together”.
“The company’s innovative distribution model responds to the unmet demand in the African insurance sector, and we look forward to working with Turaco as they continue to build on their early success,” she said. Get more insight here
https://disrupt-africa.com/2022/09/16/kenyan-insurtech-startup-turaco-secures-10m-series-a-round/
