Nigerian insurtech startup MyCover.ai has raised US$1.25 million in pre-seed funding. The funding was led by Pan-African venture capital fund Ventures Platform, and will be used to bolster in-house operations and tech talent. The company will also expend the funding on scaling its Open Insurance API platform, as well as to expand its reach to more markets in Africa.
MyCover.ai’s platform allows insurance companies to integrate their products and services with other businesses and applications. This makes it easier for businesses and individuals to buy insurance products and services, and it also helps insurance companies reach a wider audience.
The funding round was also supported by Founders Factory Africa and Techstars, who are making a follow-on investment after the startup’s participation in their 2022 Toronto Accelerator program.
“The current insurance landscape is plagued by fragmentation and inefficiencies that hinder distribution and adoption. Affordable, accessible, and frictionless insurance remains a significant challenge for many customers, and we are proud to be at the forefront of change, constructing a robust infrastructure that addresses these critical issues head-on. We are building the rails that will power the growth and adoption of insurance across Africa, and we are delighted to have the support of our new and returning investors whose deep knowledge and extensive expertise in our region will help accelerate the attainment of our objectives,” Adebowale Banjo, CEO of MyCover.ai, said.
MyCover.ai was founded in 2021 by Adebowale Banjo, Alexander Igwe-Ifendu, and Fred Ebho, with the aim of addressing the pain-points in the African insurance sector. The company is headquartered in Lagos, Nigeria, and it has a team of over 20 people.
“There’s a problem with access and distribution as a whole, especially with the kind of products insurance companies were churning out and what people needed and could afford. We also found out that the handshake between insurance companies is not there, the visibility and the data required to improve on products and underwriting progressively was lacking,” CEO, Banjo, said.
The insurance industry in Africa is still in its early stages of development, but it is growing rapidly. The market is expected to reach $1 trillion by 2030. MyCover.ai is well-positioned to capitalize on this growth, and the new funding will help the company to achieve its goals.
“We are excited to partner with Ventures Platform and other investors to scale our platform and make insurance more accessible to businesses and individuals across Africa. We believe that our platform has the potential to revolutionize the insurance industry in Africa, and we are committed to working with our partners to make that happen,” MyCover.ai CEO said.
Dotun Olowoporoku, general partner at Ventures Platform, made comments on MyCover.ai’s services, he said:
“Unlike other insurtech solutions that focus on specific areas of insurance penetration among the underserved, MyCover.ai takes a collaborative approach and offers a suite of services that cover the entire spectrum of these challenges. We are confident in their vision and operational pedigree, and we are excited to support their growth as they continue to empower businesses and individuals through scalable and innovative insurance solutions,” he said.
The funding announcement comes at a time when the African tech ecosystem is growing rapidly. MyCover.ai claims to have recorded over $1 million in gross written premiums from partnerships with 30 insurance distributors nationwide since its launch
With the new funding, MyCover.ai is well-positioned to become a leading player in the African insurance market.