Nigeria’s first full-fledged digital insurance company, Casava, has secured $4 million in pre-seed funding to provide affordable and accessible insurance products for millions of Nigerians. It plans to leverage artificial intelligence and behavioural science to deliver game-changing claims and benefits products.
The fund, the largest pre-seed round for an African insurtech, will support the firm in customer acquisition and growth, as well as further development of the product and the technology stack.
Digital insurance in Nigeria is gaining momentum in its development using technology and acceptance, while attention from investors has continued to see more funds being pumped into the space to ensure increased insurance penetration in the country, as well as transform the insurance market in Africa.
The funding round, which is to help provide micro-insurance for millions of Nigerians, was spearheaded by Target Global, with participation from Entrée Capital, Oliver Jung, Tom Blomfield (founder of Monzo) and Ed Robinson and Brandon Krieg (founders of Stash). African founders such as Uche Pedro (founder of BellaNaija), Babs Ogundeyi and Musty Mustapha (founders of Kuda), Shola Akinlade (co-founder of Paystack), Olugbenga Agboola (co-founder of Flutterwave), Honey Ogundeyi (founder of Edukoya), Opeyemi Awoyemi (co-founder of Jobberman) and others also participated in the round.
The startup was launched in April 2021 and was founded by Bode Pedro, a veteran entrepreneur that has built many successful companies, including Veda Technology, one of Nigeria’s premier computer hardware manufacturers. It has Segun Makinde, former vice president at JPMorgan Chase and former portfolio manager for Nigeria at MEST Africa, as chief operating officer.
Casava is Nigeria’s first licensed micro insurance underwriter, creating insurance products that make it easier for income earners across the country to protect themselves against life’s unforeseen events, including job loss and health emergencies. The startup already has more than 66,000 customers, with $16 million in insurance coverage.
The product offering from Casava, whose goal is to protect customers’ income, will see subscribers insure their income with an easy-to-use subscription that starts from as little as $1 a month and then get paid monthly for six months if they lose their job, fall sick or become disabled.
It also has add ons such as Casava Health, which subscribers can take, enabling them access to more than 1,000 doctors on telemedicine and 900 hospitals across Nigeria.
Speaking on the fund, Bode Pedro, founder and chief executive officer of Casava, said: “Our mission is to provide affordable insurance for Nigerians and other Africans and we are happy to have raised these funds from an exciting group of investors. With less than one percent of the country insured, Nigeria (and Africa) is an untapped insurance market. We want to address the barriers that hinder adoption and add value to consumers across the country.”
Ricardo Schäfer, a partner at Target Global, who also commented on the pre-seed funding, said: “Bode and the team have recognised a great opportunity to address a longstanding problem for many Nigerians and Africans and we are excited to support their mission to make insurance more accessible. One of the first of their kind in the region, Casava has the potential to transform the lives and livelihood of millions of people.”
Avi Eyal, general partner at Entrée Capital, added that, “The Casava team has developed a unique and disruptive product that we believe has the potential to transform Africa’s insurance market. We are confident in the Casava team that they have what it takes to be leaders in this field.”
The insurtech startup further said consumers can subscribe to Casava’s insurance products directly via the website, mobile app or WhatsApp, adding that it will also be working with fintech and digital partners to embed insurance products into their offerings, accessing over 500,000 financial service agents to reach customers across the country. Casava will empower these agents to offer insurance and earn commissions from their customers on a recurring basis.
