Pula has raised $20 million in a series B fundraising round which was led by BlueOrchard a global impact investment manager. Fundraising also came from IFC, a member of the World Bank group, and the Private Sector Window of the Global Agriculture and Food Security Program (GAFSP).
The funding will go towards helping thousands of smallholder farmers in emerging markets gain access to insurance against floods, droughts, and other climate-related events. Approximately 80% of smallholder farmers in the developing world lack access to formal insurance, with the number rising to a staggering 97% in Africa. Recognizing this pressing challenge, Pula has built a powerful network of over 100 partners, enabling them to reach a wide range of farmers.
By bundling insurance with other essential products like seeds and credit, Pula is making insurance more affordable and accessible than ever before. This strategy has positioned Pula as the largest insurtech in the climate and agricultural insurance space in Africa. Pula’s efforts have resulted in increased adoption of insurance among farmers, who have previously never purchased insurance, empowering them to protect their livelihoods. The $20 million Series B fundraise will enable Pula to scale its operations and significantly expand its reach over the next five years.
“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 9 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. We are particularly excited to be working with BlueOrchard, the Bill & Melinda Gates Foundation, IFC and Hesabu to benefit from their industry expertise and networks as we grow to fulfill our joint ambition of more resilient and climate secure food systems,” said Thomas Njeru, CEO and Co-Founder of Pula.
Since its inception, Pula has partnered with over 70 insurance, 20 reinsurance companies, and 100 distribution partners across the globe to deliver their innovative insurance solutions.
This has also helped to develop the capacity of local insurance and reinsurance players to understand and underwrite agricultural insurance for smallholder farmers. Currently, Pula’s main markets span across Kenya, Nigeria, Zambia, Malawi, Mozambique, and they are expanding their presence in Asia and Latin America. These markets are managed from Switzerland and coordinated from the Kenya service center.