Inclusivity Solutions, the South African digital insurance solutions firm, has secured an additional US$ 1.3 million in its second tranche of its Series A round, bringing the total Series A round to US$2.6m.
Inclusivity Solutions says the uMunthu fund, managed by Goodwell Investments, led the round with follow-on investment from UW Ventures (in partnership with Allan Gray). MFS Africa, a leading Pan-African fintech company, joined the round as a new investor.
In a statement, Founder and CEO, Jeremy Leach said: “This investment provides the endorsement and support that we need as an organization to continue our work in designing and scaling products that address the risks that really matter and can play a real role in adding value to consumers, as well as offering a digital-ready solution to insurers during operationally challenging times.”
Earlier, the Cape Town-based insurtech startup had raised $ 1.5 million first tranche of its Series A round to expand its digital insurance products into more emerging markets through partnerships with mobile operators, banks and other distribution partners and insurance companies in East and West Africa.
The $1.5m Series A round was led by Goodwell Investments with participation from Umkhathi Wethu Ventures (in partnership with Allan Gray), RGAX and angel investors. Richard Carter, director of Allan Gray Life, and independent consultant, William Frater, will join the company as non-executive directors. The firm explained that the $200,000 was disbursed in this round but was announced in the earlier tranch.
The timely move underscores the commitment by investors to the growth of inclusive digital insurance solutions dedicated to addressing risks, such as COVID-19, faced by the majority underserved consumers in emerging markets.
Inclusivity Solutions operates its digital insurance initiatives in Cote d’Ivoire, Rwanda and Kenya, in partnership with Orange, Airtel and Equity Bank’s Equitel.
The investment will be used to deepen the company’s footprint within its existing markets, support further international expansion as well as accelerate innovation in the backbone technology platform, ASPin, which underpins the three existing products.
The company, with its partners, provide a range of hospital cash and simple life products to more than 700,000 people. In Kenya, through Riziki Cover, a product designed and operated by Inclusivity Solutions and delivered through Equitel in Kenya, users are able to cover their hospital bills with ease.
Wim van der Beek, managing partner Goodwell Investments: “We are excited to lead this second tranche and make this additional investment from our uMunthu fund, especially in these challenging times. Our investment focus is inclusive growth, and we believe that collaborative insurtech solutions like Inclusivity Solutions are best positioned to reach large numbers of underserved consumers. Their model bridges the insurance protection gap for underserved through products that are designed to be simple, affordable and accessible, even on the most basic mobile phone. It is a perfect fit with our mandate, and we look forward to continue to support Inclusivity Solutions in its next stage of growth.”
MFS Africa, which joined the round as a new investor is excited to be part of their next stage of growth. The investment was made through MFS Africa Frontiers, a vehicle dedicated to exploring Frontier opportunities in the greater fintech ecosystem.
“Our obsession is to build products that directly meet the needs of consumers, consumers like Peter, and to make them simple to understand and easy to use. With insurance penetration at only 5.5 per cent of the adult population in Kenya, Peter would likely be without insurance today were it not for our innovative products. We are grateful and excited to have the support of these leading investors and partners who share our vision for a world with better protection,” concluded Founder and CEO Jeremy Leach.