Pula, the Kenyan-based insurtech company, has recently closed a significant $20 million Series B funding round. This investment is poised to transform the landscape of agricultural insurance for smallholder farmers across emerging markets. The funding round was led by BlueOrchard, a global investment manager, through its InsuResilience strategy. Notably, the International Finance Corporation (IFC), the Bill & Melinda Gates Foundation, and Hesabu Capital also participated, alongside existing investors. Pula aims to leverage this capital infusion to expand its global reach and establish new partnerships, particularly in the realm of livestock insurance.
“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 Pula CEO Thomas Njeru.
Why the Investors Invested
The decision by these prominent investors to back Pula is grounded in several reasons:
- Market Potential: Pula targets emerging markets, where agricultural insurance penetration is low despite the significant impact of climate risks on smallholder farmers. The company’s focus on enhancing access to insurance for these farmers aligns with the vast market potential. Data from the article highlights that small-scale farmers contribute 70% of the food supply in Africa, yet only 1% of them are covered by insurance, indicating a substantial untapped market.
- Strong Business Model: Pula’s innovative approach of embedding insurance within partners’ products, rather than selling directly to farmers, has proven effective in reaching remote agricultural communities. This strategy has facilitated partnerships with over 100 organizations and contributed to the company’s substantial impact on smallholder farmers. Research conducted by Pula demonstrates significant benefits for farmers using their products, including a 16% increase in farm investment, a 56% improvement in yields, and up to a 170% increase in household savings.
- Experienced Leadership: The leadership team at Pula, including co-founders Rose Goslinga and Thomas Njeru, brings extensive experience and expertise in the agricultural insurance sector. Their agricultural backgrounds and deep understanding of the challenges faced by smallholder farmers enhance investor confidence in the company’s ability to execute its mission effectively.
- Strategic Partnerships: Pula’s partnerships with governments, international organizations, and financial institutions demonstrate its ability to scale and make substantial contributions to agricultural resilience. For example, the company’s collaboration with the government of Zambia and the World Food Programme in Ethiopia showcases its capacity to establish impactful partnerships and expand its reach to vulnerable communities.
- Track Record of Success: Pula’s track record of success is evidenced by its support for 15.4 million farmers across Africa, Asia, and Latin America, as well as its partnerships with key stakeholders in the agricultural sector. The company’s ability to generate positive outcomes for farmers, reflected in increased investment, yields, and savings, underscores its value proposition and potential for growth.
BlueOrchard, a global impact investment manager, led the funding round for Pula through their InsuResilience strategy, focusing on climate insurance for vulnerable populations in emerging markets. The International Finance Corporation (IFC), a key member of the World Bank Group, also participated via its $225 million venture capital platform, in line with its commitment to poverty reduction and innovative solutions. The Bill & Melinda Gates Foundation, renowned for addressing global challenges, supported Pula’s mission of providing agricultural insurance to smallholder farmers. Additionally, Nairobi-based Hesabu Capital, known for investments in technology and sustainable ventures, backed Pula’s efforts in enhancing climate resilience and supporting underserved communities.
A Look at Pula
Founded in 2015 by Rose Goslinga and Thomas Njeru, Pula has emerged as a leading insurtech startup focused on agricultural insurance in emerging markets. The company’s primary markets include Africa, Asia, and Latin America, where it has supported millions of smallholder farmers in obtaining insurance coverage. Pula’s unique approach involves embedding insurance premiums within partners’ products, facilitating wider distribution and accessibility for farmers. Notably, the company has seen success in collaborations with governments and international organizations, such as its partnership with the government of Zambia and the World Food Programme in Ethiopia. Pula’s expansion into new markets and the introduction of livestock insurance further solidify its commitment to enhancing agricultural resilience globally.
