Key Takeaways:
- Significant Impact: Since its inception in 2015, Pula has helped over 15.4 million smallholder farmers in Africa, Asia, and Latin America access agricultural insurance, protecting them against critical risks like pests, disease, and extreme weather.
- Recent Funding Success: Pula has raised $20 million in Series B funding led by BlueOrchard, with contributions from IFC, the Bill & Melinda Gates Foundation, Hesabu Capital, and other existing investors. The company aims to expand its offerings, including livestock insurance.
- Strategic Growth: This funding round will help Pula to establish new partnerships and enhance its product range, supporting its vision to cover 100 million smallholder farmers.
- Innovative Insurance Products: Pula utilizes advanced technologies such as machine learning and area yield index insurance to develop products tailored to the nuanced needs of smallholder farmers.
- Distinguished Clientele: Pula’s clients include high-profile organizations such as the World Food Programme, the Central Bank of Nigeria, and the governments of Zambia and Kenya.
Expansion of Pula’s Insurtech Offerings
Pula, an insurtech startup based in Kenya, has successfully closed a $20 million Series B funding round to expand its agricultural insurance products aimed at smallholder farmers across emerging markets. BlueOrchard led the round through its InsuResilience strategy, which focuses on increasing the accessibility of climate insurance to the most vulnerable populations in these regions.
The Funding Round
The significant investment attracted a consortium of influential backers, including the International Finance Corporation (IFC), the Bill & Melinda Gates Foundation, Hesabu Capital, and other previous investors. This funding marks a crucial step in Pula’s development, following a $6 million Series A round in 2021 that initially helped broaden its market reach and enhance operational capacities.
Thomas Njeru, Co-founder and CEO of Pula, shared his vision with Techcrunch: “Partnering with this group of like-minded investors to boost the growth of Pula globally is a very exciting milestone in driving our triple 100 vision, through which we intend to bring insurance to 100 million smallholder farmers. What started nine years ago as an unconventional idea that many deemed un-scalable is now a proven solution that has solved real needs for millions of smallholder farmers across 22 countries.”
Technological Advancements in Agricultural Insurance
Pula specializes in innovative insurance products such as Area Yield Index Insurance, which integrates machine learning, crop-cutting experiments, and extensive data analysis on weather patterns and farmer losses to create tailored insurance solutions. These products are crucial in mitigating risks associated with farming, particularly under the unpredictable conditions spurred by climate change.
Impact and Coverage
Since Rose Goslinga and Thomas Njeru launched Pula in 2015, the Insurtech has reached over 15.4 million farmers, helping them withstand adverse effects from pests, diseases, and severe weather events through tailored insurance solutions. The insurtech’s efforts have spanned 22 countries, reflecting a significant impact in the agricultural sector of emerging markets.
Client Engagements and Future Plans
Pula’s client base includes notable entities such as the World Food Programme, the Central Bank of Nigeria, and the governments of Zambia and Kenya, showcasing the startup’s credibility and importance in the agricultural sector. With the new funds, Pula plans to expand its insurance offerings to cover livestock and establish new partnerships, further extending its support for smallholder farmers globally.
Photo by Maria Zardoya on Unsplash
