By Faridat Salifu
Amidst escalating concerns over the impact of climate change across African Continent’s agricultural activities, Pula, a leading insurtech firm specializing in climate insurance for small-scale farmers in Africa, recently announced a significant milestone with the successful completion of a $20 million Series B financing round.
The investment, spearheaded by Swiss investment company, BlueOrchard, and joined by prominent backers including the International Finance Corporation (IFC) and the Bill & Melinda Gates Foundation, underscores the growing recognition of Pula’s innovative approach to tackling climate-related risks in agriculture.
Pula’s mission to provide accessible insurance solutions to small-scale farmers has gained momentum.
Leveraging advanced technologies such as artificial intelligence (AI), field data collection mechanisms, and mobile-based recording systems, Pula has established itself as a pioneer in the intersection of insurtech and agricultural resilience.
Richard Hardy, Private Equity Investment Director for Africa at BlueOrchard, highlighted Pula’s transformative impact on rural communities, noting that their digital platform has facilitated expansion into new territories while keeping operational costs at bay.
The transformative impact are visible through offering a comprehensive suite of services including insurance, improved seeds, and credit, Pula has successfully empowered farmers to safeguard their livelihoods against climate-related uncertainties.
Despite the progress made by Pula, significant challenges persist, with the majority of small-scale farmers in Africa still lacking access to formal insurance.
This sobering reality underscores the urgent need for scalable solutions to address the vulnerabilities faced by rural populations in the face of extreme weather events.
With the infusion of $20 million in funding, Pula is poised to scale up its operations over the next five years, extending its reach across Asia and Latin America while deepening its impact in existing markets.
The Nairobi-based firm currently serves 15 million small-scale farmers across 22 countries, but acknowledges the ongoing imperative to bridge the gap in insurance coverage for vulnerable communities.
Meanwhile, concerted efforts from governments, private sector stakeholders, and international organizations will be essential in ensuring that no farmer is left behind in the quest for climate-resilient agriculture.