Botswanan insurtech startup AlphaDirect has raised a US$600,000 pre-Series A bridge funding round to help it expand into Zambia and South Africa.
Founded in 2014 by Arun Iyer, AlphaDirect offers “value-for-money” business and personal insurance products directly to customers.
The startup has been growing fast, making US$4.8 million in revenues in the last financial year, and is now planning international expansion after securing its latest investment. Having raised a total of US$2.5 million across four seed rounds between 2015 and 2019, it has now taken on a pre-Series A round, which Iyer said was in advance of a Series A round in a few months time.
“It’s a small bridge round en route to a much bigger US$5 million Series A that we plan to close by June 2021,” he told Disrupt Africa.
“The round was oversubscribed and thus we decided to extend to US$600,000 from US$500,000.”
The round was led by Launch Africa Ventures, and also featured Century Oak Capital and some angels from previous rounds. It will be used for expansion into Zambia and South Africa, expansion within Botswana, and other general business purposes.