Kenya’s leading insurtech Turaco has just raised the close of a $10 million Series A equity round which saw participation from Enza Capital, Global Partnerships, Zephyr Acorn, Operator Stack, Asi Ventures Limited, and Push Ventures, was led by AfricInvest, via the Cathay Africinvest Innovation Fund, and existing investor, Novastar Ventures.
Founded in 2019 by Ted Pantone and Peter Gross, Turaco is a distributor, broker, and key customer interface between the underwriter and the end consumer. The insurtech company’s mission is to free people from the fear of financial shocks caused by unexpected health risks.
Turaco is able to achieve this through a B2B and B2B2C business model, forming partnerships with top tech-enabled companies with a large pool of customers or staff in emerging markets, including some of the continent’s most trusted brands such as Sun King, One Acre Fund, Tugende, M-KOPA and VisionFund. Through its active partnerships, the insurtech has designed and delivered a suite of bespoke medical, life, asset, and vehicle insurance packages that have already covered over half a million lives across Nigeria, Kenya, and Uganda.
“We want to insure a billion people in the next 25 years and that’s what we’re building towards. It’s an audacious goal in every way and I can’t even really describe how to get there, but I have a clear vision of insuring 100 million people. Getting to that next stage of growth means working with some of the largest brands in the world. We have the right mix of talent, ambition, technology and vision to get us there. But it’s a long road ahead of us for sure,” Ted Pantone, Turaco co-founder and CEO.
The insurtech company has so far reached over half a million customers, 268,000 of whom are active. Its users have grown 300% since 2020. Pantone attributed the growth to their business model and value proposition, which he says works for both partners and end users.
“As the insurance penetration in Sub-Saharan Africa remains below 3%, one of the lowest rates globally, we believe Turaco has developed the tools and know-how to fill this gap and reach low-income earners with products adapted to their needs, thus being a critical part of the push to help shield the most disadvantaged from unforeseen financial burdens and shocks,” AfricInvest and co-head of CAIF Partner Yassine Oussaifi, said in a statement.