To assist thousands of smallholder farmers in developing nations in obtaining insurance against floods, droughts, and other climate-related calamities, Kenyan agricultural insurance and technology startup Pula has closed a US $20 million Series B funding round.
In order to help smallholder farmers manage climate risks, enhance their farming methods, and gradually increase their incomes, Rose Goslinga and Thomas Njeru founded Pula in 2015. Pula creates and provides cutting-edge agricultural insurance and digital products.
Pula is making insurance more accessible and affordable than ever by combining it with other necessities like credit and seeds. In addition to raising a US $20 million Series B round, which will allow Pula to scale its operations and greatly increase its reach over the next five years, the startup also raised a US $6 million Series A round back in 2021.
IFC and the Global Agriculture and Food Security Program’s (GAFSP) Private Sector Window also contributed to the funding round, which was spearheaded by BlueOrchard, a Schroders Group member and global impact investment manager, through its InsuResilience strategy.
“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,” said Njeru.
To deliver their cutting-edge insurance solutions, Pula has partnered with more than 70 insurance, 20 reinsurance, and 100 distribution partners worldwide since its founding. Additionally, this has enhanced the ability of regional players in insurance and reinsurance to comprehend and provide agricultural insurance for smallholder farmers.
At the moment, Pula’s principal markets are in Kenya, Nigeria, Zambia, Malawi, and Mozambique. They are also beginning to establish themselves in Latin America and Asia. These markets are coordinated from the Kenya service center and managed out of Switzerland.
“What sets Pula apart is their innovative business model, leveraging artificial intelligence, on-the-ground data collection mechanisms, mobile-based registration systems, remote sensing, and end-to-end automation tools. Their digital platform has enabled them to expand into new geographies with ease and efficiency, all while keeping setup costs low. The Pula team has an unrivaled track record in the agricultural insurance space and is deeply aligned with our mission and strategy,” said Richard Hardy, private equity investment director for Africa at BlueOrchard.
