Kenyan micro-insurtech startup, Turaco, has raised $2 million in seed funding as it seeks to expand further into Sub-Saharan Africa.
This is coming just days after Kuda, a FinTech startup in Nigeria that operates a popular mobile-first challenger bank for consumers and small businesses, has announced that it has raised $10 million, the biggest seed round ever to be raised in Africa.
Recently also, a new report released recently by Google and the International Finance Corporation (IFC), have estimated that Africa’s Internet Economy has the potential to reach 5.2% of the continent’s gross domestic product (GDP) by 2025, contributing nearly $180 billion to its economy.
Investors who took part in the funding include Novastar Ventures, Mercy Corps Ventures, Musha Ventures, GAN Ventures, and Zephyr Acorn.
Related: Nigeria’s Fintech Kuda Secures $10M in Seed Funding
According to Turaco, the fund will be used to fund the drive growth in its current locations of Kenya and Uganda and facilitate expansion into a third market by next year. The financial support will also facilitate developing the next stage of Turaco’s proprietary technology and recruitment of key hires to position the business for continued growth in 2021.
Founded in 2018, Turaco is an insurtech business that partners with local companies and mobile lending organizations to provide medical cover to unserved and underserved communities.
The startup offers life and health insurance products distributed through partnerships. Its offering is based on a subscription model through which consumers can opt for automated medical policy renewals bundled with their existing payments, similar to bank loans or ride-hailing services.
In December last year, the startup raised $1.2 million to expand into new markets and cement position in existing markets, and pursue partnerships with businesses, mobile lending organizations, and fintech companies.
