Pula, a Nairobi-based agricultural insurance and technology company, led by Kenyan entrepreneur Thomas Njeru, has successfully concluded a Ksh2.6 billion ($20 million) Series-B fundraising round. The endeavor aims to fortify support for smallholder farmers in emerging markets, equipping them against climate-related risks.
The Series B funding round was spearheaded by global impact investment manager BlueOrchard, through its InsuResilience strategy. This initiative seeks to shield vulnerable populations and micro-entrepreneurs from the adverse impacts of climate change by facilitating access to climate insurance.
Pula’s successful fundraising round underscores the growing recognition of the vital role played by insurtech in bolstering climate resilience for smallholder farmers. With strategic partnerships and innovative solutions, the company is poised to make significant strides in safeguarding the livelihoods of millions across Africa, Asia, and Latin America.
IFC, GAFSP foster development initiatives
Joining the fray were the International Finance Corporation (IFC), a member of the World Bank Group, and the Private Sector Window of the Global Agriculture and Food Security Program (GAFSP).
The IFC’s financial support is part of its $225-million venture capital platform, established in November 2022, aimed at bolstering early-stage enterprises driving developmental progress through technological innovations.
Richard Hardy, Private Equity Investment Director for Africa at BlueOrchard, lauded Pula’s innovative business model. He commended its adept utilization of artificial intelligence, on-ground data collection mechanisms, mobile-based registration systems, remote sensing, and end-to-end automation tools.
Hardy praised Pula’s digital platform for facilitating seamless expansion into new territories while minimizing setup costs, affirming the company’s stellar track record in agricultural insurance.
Pula empowers farmers with affordable insurance
Pula’s innovative approach makes insurance affordable by bundling it with essential products like seeds and credit, positioning it as the largest insurtech in Africa’s climate and agricultural insurance landscape. The new funding aims to scale Pula’s operations and significantly expand its reach over the next five years.
Since its inception, Pula has partnered with more than 70 insurance and 20 reinsurance companies, along with 100 distribution partners globally. Under the leadership of CEO and co-founder Thomas Njeru since 2015, Pula’s progress has been marked by pioneering efforts in delivering innovative insurance solutions to underserved markets.
Thomas Njeru, recognized as one of East Africa’s leading entrepreneurs, expressed enthusiasm over the milestone. He articulated the company’s ambition to extend insurance coverage to 100 million smallholder farmers globally.
Njeru acknowledged the pivotal role played by strategic partners like BlueOrchard, the Bill & Melinda Gates Foundation, IFC, and Hesabu in nurturing Pula’s growth trajectory. He underscored Pula’s commitment to fostering resilient and climate-secure food systems through strategic collaborations and innovative solutions.
