Insurtech startup OKO raises $1.2m to bring innovative insurance to smallholder farmers across Africa

Insurtech startup OKO raises $1.2m to bring innovative insurance to smallholder farmers across Africa

Published: 23-04-2021 09:21:00 | By: Pie Kamau | hits: 4684 | Tags:

OKO, an insurtech startup that provides inclusive agricultural insurance to secure farmers’ income across Africa, closed a seed investment round of $1.2 million, led by Newfund and ResiliAnce. Mercy Corps Venture, Techstars, ImpactAssets and RaSa also participated in the round.

The startup which currently operates in Mali and Uganda uses satellite data and mobile payments to create automated insurance products for farmers whose fields are affected adversely by weather events, primarily droughts and floods. With the new funding, OKO aims to strengthen its presence in Mali and Uganda and expand its offerings to more African markets, starting with Ivory Coast.

Simon Schwall, Founder, OKO: “Agriculture is by far the largest source of occupation in Africa, with an estimated 33 million farms. And yet, farmers are deprived from basic financial services like insurance and loans. We are using technology to solve this issue and secure the income of those farmers”

The company already has approximately 7,000 paying customers in Mali and compensated more than 1,000 farmers last year, who were affected by floods. OKO’s customers typically grow maize, cotton, sesame or millet. OKO also works with agro-industries to help them with their sustainability goals and secure their relationships with suppliers. Successful pilots were completed with ABInBev and Touton in Uganda.

Augustin Sayer, Partner, Newfund: “We believe recent advancement in iOT and data availability will lead to the rise of parametric insurance in Africa for the benefit of the local populations. Simon and his team have built solid bases in Mali from which OKO can now expand in new countries and offer new insurance products.”

Daniel Block, Mercy Corps Ventures: "While other micro-insurance for farmers exist, we were impressed by OKO's ability to partner with a pan-African operator like Orange and establish a direct consumer link, which allows for an exciting opportunity to drive deeper user engagement and expand to a suite of insurance products for rural farmers in the future."

The service offered by OKO is supported by regulators and has won both the Fintech Showcase Award by the Alliance for Financial Inclusion, representing financial regulators of emerging countries, and the SME award from ITU, the telecommunication governing body.

www.oko.finance