South African insurtech startup Inclusivity Solutions has raised US$1.3 million in the second tranche of its Series A funding round to help it expand within its existing markets and into new ones.
Inclusivity Solutions designs, builds and operates inclusive digital insurance solutions and delivers them through digital channels in partnership with mobile operators, insurance companies and other distribution partners.
The startup raised US$1.56 million in the first tranche of its Series A funding round in June of last year, and has now secured an additional US$1.3 million from Goodwell Investments, UW Ventures in partnership with Allan Gray, and new investor MFS Africa.
Inclusivity Solutions has already successfully launched digital insurance initiatives in Ivory Coast, Rwanda and Kenya, with its range of hospital cash and simple life products having provided protection to more than 700,000 people. The investment will be used to deepen the company’s footprint within its existing markets, support further international expansion, and accelerate innovation in the backbone technology platform that underpins its existing products.
Founder and chief executive officer (CEO) Jeremy Leach said as the humanitarian and economic disaster that is COVID-19 unfolds, there could not be a more important time for insurance solutions to play a role in protecting the vulnerable.
“This investment provides the endorsement and support that we need as an organisation to continue our work in designing and scaling products that address the risks that really matter and can play a real role in adding value to consumers, as well as offering a digital-ready solution to insurers during operationally challenging times,” he said.
Wim van der Beek, managing partner of Goodwell Investments, said his company was excited to lead the round and make this additional investment from its uMunthu fund.
“Our investment focus is inclusive growth, and we believe that collaborative insurtech solutions like Inclusivity Solutions are best positioned to reach large numbers of underserved consumers,” he said.
“Their model bridges the insurance protection gap for underserved through products that are designed to be simple, affordable and accessible, even on the most basic mobile phone. It is a perfect fit with our mandate, and we look forward to continuing to support Inclusivity Solutions in its next stage of growth.”