Pula, an innovative insurance technology firm based in Kenya, has recently garnered a substantial $20 million in its Series B investment round. This fresh capital influx is poised to bolster the startup’s ambitious mission to extend its services to a larger number of African farmers and to cultivate robust partnerships within the region.
The funding initiative was spearheaded by BlueOrchard, a preeminent global investment manager, utilizing its specialized InsuResilience investment strategy. Pula’s financing endeavor also drew the participation of a diverse group of investors, including the International Finance Corporation (IFC), which has allocated $225 million for venture capital investments, the philanthropic powerhouse Bill & Melinda Gates Foundation, Hesabu Capital, alongside Pula’s steadfast existing backers.
With this injection of funds, Pula is set to advance its “triple 100 vision.” The grand scheme entails embarking on a journey to furnish agricultural insurance to a staggering 100 million smallholder farmers—an endeavor that could catalyze a transformative ripple effect across Africa’s agricultural landscape.
The foundations of Pula were laid down in 2015 by the entrepreneurial duo Thomas Njeru and Rose Goslinga. Their vision was anchored in providing small-scale cultivators—the backbone of the continent’s agronomy—with reliable access to insurance that would safeguard their livelihoods against a spectrum of adversities, such as pestilence, diseases, and the whims of Mother Nature’s extreme weather patterns.
Forgoing the conventional direct sales approach, Pula has adeptly channeled its insurance solutions through a vast network of over 100 partners, thereby integrating insurance coverage into the essential costs of farming inputs and credit systems. This is made feasible by leveraging a cutting-edge digital actuary platform, which meticulously synthesizes historical data, including climatic trends, to design and offer tailor-made insurance products. Presently, Pula’s vital services have reached the doorsteps of farmers sprawling across 22 countries, depicting a testament to their far-reaching impact.
Pula’s expansive partnership network encompasses a wide array of key players in the agricultural ecosystem, including financial institutions, government bodies, and companies that specialize in providing essentials for farming operations. This multi-faceted cooperation is instrumental in Pula’s strategy to embed insurance products within the broader framework of agricultural support services.
Highlighted among Pula’s strategic collaborations are its alliances with prominent international organizations — notably, the World Food Programme and the German Development Bank KfW, both of which have been working closely with Pula on initiatives in Ethiopia. These partnerships are a testament to the startup’s capacity to align with global efforts geared towards enhancing agricultural resilience.
Additionally, Pula has a well-established collaborative relationship with the Zambian government. This longstanding partnership is indicative of the startup’s commitment to working in tandem with public entities to address the pressing insurance needs of the agricultural sector.
In the face of mounting challenges, such as the surging incidence of wheat rust disease in the Amhara region, Pula is poised to make a significant intervention. The insurtech pioneer is readying an insurance payout in the vicinity of $800,000 aimed at mitigating the adverse impact on the livelihoods of farmers battling this crop affliction. This move underlines Pula’s pivotal role in providing timely financial relief and support to farmers facing agricultural calamities.
Pula Co-Founder and CEO Thomas Njeru recently expressed his enthusiasm for the notable progress and potential growth spurred by the significant partnerships the startup has formed. The team at Pula is riding the wave of momentum generated by securing $20 million in Series B funding, a pivotal point in accelerating the reach of their innovative insurance solutions to smallholder farmers.
Njeru highlighted the journey from Pula’s inception—an idea initially perceived as too ambitious and unscalable—to its present success, evidenced by its operational footprint in 22 countries. The startup’s ability to address concrete needs for millions of smallholder farmers is now undisputed.
The company’s impressive renewal rates, where 80% of farmer groups and aggregators continue to rely on insurance developed by Pula year after year, speaks volumes about the trust and satisfaction that Pula’s products have garnered. This loyalty from their customer base reflects the efficacy and value of Pula’s offerings in the agricultural insurance landscape.
After achieving success, the company aims to expand its livestock insurance services to countries like Kenya, following the completion of a pilot project that was initiated in Nigeria in the previous year.
Pula secured a Series A funding round of $6 million in 2021, which was spearheaded by TLcom Capital and included contributions from Women’s World Banking, a nonprofit organization. Additionally, the company garnered a $1 million seed investment from Rocher Participations in 2018 and received backing from Accion Venture Lab, Omidyar Network, along with a group of angel investors.
