MyCover.ai raises $1.25m in pre-seed round

MyCover.ai, a promising insurtech startup, has successfully completed a significant pre-seed funding round, securing an impressive $1.25 million. This new capital injection is set to empower MyCover.ai to expand its innovative product offerings into various African markets. Debo Banjo, the co-founder and CEO of MyCover.ai, joined CNBC Africa for an exclusive interview to discuss the successful fundraise and shed light on the company's vision for the future. Banjo highlighted the untapped potential in the African insurance market, citing low penetration rates across the continent. He emphasized the importance of providing financial security for Africans by improving access to insurance products through innovative technologies and product designs. MyCover.ai aims to leverage embedded insurance, partnering with businesses to offer optional or bundled insurance products alongside existing digital solutions. The insurtech startup's approach to embedded insurance opens up new opportunities for various sectors. For instance, customers purchasing items like phones on pay-later plans can benefit from automatically embedded insurance coverage. Additionally, diaspora communities can easily access health insurance for family members back home. Fintech companies and telcos can also distribute insurance products to their customer base, enhancing financial security across different demographics. With insurance penetration in Nigeria and other African countries currently below three percent, MyCover.ai sees significant room for growth. Banjo highlighted the company's strategy to increase the size of the insurance market by bringing more individuals into the fold. By focusing on innovative product designs and distribution channels, MyCover.ai aims to drive insurance adoption and improve financial inclusion. Moreover, MyCover.ai is committed to addressing the needs of underserved markets, including individuals with unpredictable incomes. The company offers flexible payment options, allowing customers to contribute daily towards insurance coverage. By partnering with players who cater to the bottom of the pyramid, MyCover.ai ensures that artisans and daily wage earners can access essential insurance protection. Banjo emphasized the role of technology in expanding insurance accessibility and affordability. Through data-driven insights and partnerships with leading insurance providers, MyCover.ai aims to offer tailored insurance solutions that meet the diverse needs of customers. The insurtech startup's collaboration with traditional insurance companies is viewed as a positive step towards enhancing the retail sector and driving innovation within the industry. Looking ahead, MyCover.ai plans to deepen its market presence in Nigeria while exploring expansion opportunities in other African regions. The company is eyeing potential markets in West and East Africa, with a strategic focus on growing its footprint across the continent. As MyCover.ai continues its journey towards enhancing financial security and promoting insurance inclusion in Africa, the company remains dedicated to leveraging technology, innovative product offerings, and strategic partnerships to drive sustainable growth and meaningful impact in the insurance sector.