Switzerland-based BlueOrchard Finance has signed a deal to back a $20 million investment into a Kenya-based financial services technology company, investing alongside Bill & Melinda Gates Foundation.
The investor has led a series-B funding round into Pula, investing alongside Hesabu Capital and International Finance Corporation (IFC) – all investing as new players.
Bill & Melinda Gates Foundation is backing the company as an exiting player having first backed the company in 2018 alongside Mulago Foundation.
This round also includes a number of undisclosed existing investor.
BlueOrchard is structuring the deal through InsuResilience Investment Fund Private Equity II (IIF PE II), which is targeting $100 million at final close.
Meanwhile IFC is investing through the Global Agriculture and Food Security Program (GAFSP) Private Sector Window, an emerging markets focused agriculture investment platform.
Pula will use the new capital for geographical expansion as it works on plans to grow its footprint regionally across the emerging markets in the five years to 2029.
The company is being backed based on growth prospects, with approximately 80% of smallholder farmers in the developing world lacking access to formal insurance, a number that rises to 97% in Africa, according to BlueOrchard.
“What sets Pula apart is their innovative business model, leveraging artificial intelligence, on the ground data collection mechanisms, mobile-based registration systems, remote sensing, and end-to-end automation tools,’’ said Richard Hardy, private equity investment director Africa at BlueOrchard. ‘’Their digital platform has enabled them to expand into new geographies with ease and efficiency, all while keeping setup costs low. The Pula team has an unrivaled track record in the agricultural insurance space and is deeply aligned with our mission and strategy.”
Mary Porter Peschka, regional director for Eastern Africa at IFC represented the investor.
Kitili Mbathi, managing director at Hesabu Capital worked on the deal.
Paulin Basinga is director for Africa at Bill & Melinda Gates Foundation.
Previous investors in the company include TLcom Capital which backed a series-A $6 million funding round in Pula in 2021.
Other previous investors include Accion Venture Lab which first backed Pula in 2018, backing a $1 million seed investment round into the company.
Omidyar Network, the investment platform of eBay founder and chairman, Pierre Omidyar and Mauritius-based investor Choiseul Africa Capital also participated in the 2018 round.
US-based foundations the Bill & Melinda Gates Foundation and Mulago Foundation also backed the 2018 round.
Mercy Corps Ventures (MCV), the investment arm of US-based not-for-profit organisation Mercy Corps is also a previous investor in Pula, having also participated in the 2018 funding round.
Headquartered in Nairobi, Pula is a software company that offers insurance services to smallholder farmers through an online platform.
The company designs and structures insurance products to manage farmers’ risks.
Pula partners with governments, agriculture companies and financial services providers to bundle insurance with farm input products or loans.
Pula has partnered with over 70 insurance and 20 reinsurance companies, as well as 100 distribution partners globally, since its inception.
The company has a presence in Senegal, Ghana, Mali and Nigeria in West Africa and Zambia in Southern Africa.
In East Africa, the company operates across Ethiopia, Malawi, Madagascar, Tanzania, Kenya, Rwanda, Uganda and Mozambique.
The company is also expanding its presence in Asia and Latin America.
Created in 2015, Pula is headed by co-founders and co-CEOs Rose Goslinga and Thomas Njeru, and employs over 420 people, as of 2024.
See full data on this deal here
