Kenyan micro-insurtech startup, Turaco, has raised $2 million in seed funding as it seeks to expand further into Sub-Saharan Africa.
Investors who took part in the funding include Novastar Ventures, Mercy Corps Ventures, Musha Ventures, GAN Ventures, and Zephyr Acorn.
According to the firm, they will use the funding to drive growth in its current locations of Kenya and Uganda and facilitate expansion into a third market next year. The financial support will also facilitate developing the next stage of Turaco’s proprietary technology and recruitment of key hires to position the business for continued growth in 2021.
Founded in 2018, Turaco is an insurtech business that partners with local companies and mobile lending organizations to provide medical cover to unserved and underserved communities.
The startup offers life and health insurance products distributed through partnerships. Its offering is based on a subscription model through which consumers can opt for automated medical policy renewals bundled with their existing payments, like bank loans or ride-hailing services.
In December last year, the startup raised $1.2 million to expand into new markets and cement position in existing markets, and pursue partnerships with businesses, mobile lending organizations, and fintech companies.