InsurTech start-up Pula raises $6mn to fund Africa expansion

African InsurTech start-up, Pula, has secured a substantial $6 million in funding to fuel its expansion efforts across the continent. Co-founder and co-CEO, Rose Goslinga, shared insights with CNBC Africa on the company's latest Series A round of capital raising and strategic plans for growth. The company has already amassed close to $10 million in funding and intends to utilize this fresh capital infusion to amplify its commercial operations in the 13 existing markets it serves. Pula's focus is primarily on enhancing its presence in countries like Kenya, Nigeria, Zambia, and expanding further into other African markets such as Togo and Zimbabwe. The overarching goal is to bridge the gap in agricultural insurance expertise and drive insurance penetration in Africa's agriculture sector, which remains largely underinsured. One of the key challenges identified by Goslinga is the innate lack of trust and understanding of insurance products within the African population. To counter this, Pula has adopted a customer-centric approach, creating bundled insurance offerings in collaboration with trusted organizations like credit institutions, banks, and international NGOs. By partnering with entities like the Central Bank of Nigeria, the World Food Program, and the International Fund for Agricultural Development, Pula aims to build credibility and foster trust in its insurance solutions among farmers and stakeholders. The company's success lies in its innovative strategies to integrate insurance products seamlessly into existing programs and services, thereby addressing the unique needs and concerns of the African agricultural community. By breaking the traditional mold of insurance sales and embracing disruptive thinking, Pula has emerged as a trailblazer in the InsurTech space, paving the way for increased insurance accessibility and affordability in the agricultural sector. Goslinga highlighted the importance of speed and reliability in claims processing, emphasizing the crucial role of fulfilling promises promptly to instill confidence in the insurance system. Pula's holistic approach towards building trust and expanding market reach has garnered recognition within the industry, with the company winning the 'InsurTech of the Year in Africa' award earlier this year. Despite the vast potential for growth and innovation in Africa's insurance landscape, traditional players have hesitated to delve into agriculture insurance due to the complex nature of the sector and ingrained perceptions around risk and trust. Goslinga noted the significant market opportunity for larger insurance firms to tap into the untapped segments of the African insurance market, urging industry players to adopt a more nuanced and agile approach to product positioning and customer engagement. In a continent where agriculture employs over 68% of the population, the critical need for robust insurance solutions tailored to the sector's requirements cannot be overstated. Pula's funding injection marks a significant milestone in the journey towards bolstering agricultural insurance across Africa and paving the way for a more inclusive and resilient insurance ecosystem.