Kenyan insurtech Pula raises $20m in Series B funding

Kenyan insurtech firm Pula has recently closed a successful Series B funding round, raising $20 million to further expand its innovative insurance offerings aimed at making insurance more accessible and affordable for farmers across Africa. The company's CEO and Co-Founder, Thomas Njeru, sat down with CNBC Africa to discuss how Pula plans to utilize this substantial investment boost for its growth and expansion strategy. Pula, which has already ventured into the Latin American and Asian markets in 2022, aims to leverage this funding to deepen its presence in these regions and cater to more consumers and farmers. Additionally, the company plans to enhance its product propositions in its existing markets across East Africa, West Africa, Francophone Africa, and Southern Africa. Pula is not only looking to expand its insurance solutions but also to introduce other products that can help farmers boost their productivity and safeguard their incomes. One of their key objectives includes automating many of their back-office operations to expedite the process of compensating farmers in the event of a loss. Njeru envisions a future where farmers can receive payouts within 48 hours of a loss occurrence, enabling them to quickly recover and resume their agricultural activities. This commitment to swift response and support has already translated into increased farmer yields and overall success. Amidst fluctuating economies and currency instabilities across various African countries, Pula remains committed to ensuring the sustainability and affordability of its products. Njeru emphasized that agriculture serves as the economic backbone of African nations, but due to insufficient investments, farmers often struggle to achieve optimal yields. By offering insurance solutions, Pula aims to attract investments into agriculture, thereby enabling farmers to increase their production and reduce the cost of food production. This, in turn, helps in lowering food inflation rates and enhancing economic resilience. Njeru highlighted the crucial role of reinsurance companies in expanding their products and scaling operations. Pula collaborates with numerous reinsurers and insurance companies to provide innovative solutions, technical expertise, digital infrastructure, and data analytics to better understand and mitigate risks associated with climate-related shocks. By partnering with traditional insurance entities, Pula aims to demystify the perception of agriculture being too risky and make insurance more affordable and accessible to farmers. The company's focus on leveraging data and analytics to drive informed risk assessment is key to fostering a more robust and sustainable insurance ecosystem for farmers. Njeru's vision for Pula revolves around creating a more inclusive and affordable financial and insurance landscape for smallholder farmers worldwide. By bringing together technology and expertise, Pula is dedicated to extending its reach to more farmers in need of essential insurance protection and financial support.