Grace Ashiru
Pula, an agricultural insurance and technology startup, has successfully completed a $20 million Series B financing round. This capital will be used to offer insurance coverage to numerous smallholder farmers in developing nations, who would otherwise lack protection against natural calamities such as droughts or floods. The funding round was spearheaded by BlueOrchard, a global impact investment manager and a member of the Schroders Group, under its InsuResilience strategy. Additional financial support was provided by IFC and the Global Agriculture and Food Security Programme’s Private Sector Window (GAFSP).
The IFC has dedicated funds from its $225 million venture capital platform, initiated in November 2022, to invest in early-stage companies that leverage technological innovations to drive development.
In the developing world, nearly 80% of smallholder farmers lack access to formal insurance; this percentage soars to a staggering 97% in Africa.
In response to this critical need, Pula has built an extensive network of over 100 partners, enabling them to reach a wide array of farmers.
By integrating insurance with other essential services such as finance and seeds, Pula is making insurance more affordable and accessible.
This strategy has positioned Pula as the largest insurtech company in Africa in the agricultural and climate insurance sectors.
Pula’s initiatives have enabled numerous farmers, who had previously never purchased insurance, to now do so, thus protecting their sources of income.
“Joining forces with this team of investors who share our vision is an exciting step forward in expanding Pula’s global presence. Our goal, the ‘triple 100 vision,’ aims to deliver insurance solutions to 100 million smallholder farmers.
What was initially seen nine years ago as an unconventional and potentially unscalable idea has now been validated as an effective solution, addressing the real needs of millions of smallholder farmers across 22 countries.
We are thrilled to collaborate with BlueOrchard, the Bill & Melinda Gates Foundation, IFC, and Hesabu. Their extensive industry expertise and networks will be invaluable as we work towards our shared goal of creating more resilient and climate-secure food systems,” stated Thomas Njeru, CEO and Co-Founder of Pula.
Since its inception, Pula has established partnerships with over 70 insurance companies, 20 reinsurance organizations, and 100 distribution partners globally. These collaborations have also enhanced the capabilities of local insurance and reinsurance firms to understand and offer agricultural insurance to smallholder farmers.
Currently, Pula’s primary markets include Kenya, Nigeria, Zambia, Malawi, and Mozambique. They are also making strides in expanding their presence in Latin America and Asia. Operations in these regions are coordinated from their service center in Kenya and overseen from Switzerland.
With the recent acquisition of USD 20 million in Series B funding, Pula is poised for substantial growth and operational enhancement over the next five years.
