SA insurtech Inclusivity Solutions nets $1.5m in round led by Goodwell Investments [Updated]

Cape Town based insurtech startup Inclusivity Solutions has raised $1.56-million in a Series-A round led by Amsterdam-based impact investment and advisory firm Goodwell Investments.

Goodwell Investments, which made the investment through its €100-million Sub-Sahara Africa focused uMunthu Fund, said in a statement today that Allan Gray, RGAx (a subsidiary of Reinsurance Group of America) and other angel investors, it did not name, participated in the round.

None of the investors opted to disclose the stake they had taken in the startup. Inclusivity Solutions marketing manager Sharon Robinson told Ventureburn that the deal was concluded on 25 March and that Umkhathi Wethu Holdings also participated in the round.

Inclusivity Solutions was founded in 2015 by CEO Jeremy Leach

Robinson added that this being the first tranche, the startup will not provide details about the share of each of investor in the round nor details on the structuring.

As part of the deal, Inclusivity Solutions will welcome Allan Gray Life director Richard Carter and independent consultant William Frater as non-executive directors.

Inclusivity Solutions, which was founded in 2015 by CEO Jeremy Leach (pictured above), designs, builds and operates inclusive digital insurance solutions.

The startup also partners with mobile operators, insurance companies and other distribution partners to deliver insurance solutions through digital channels.

Startup to expand to other markets

Goodwell Investments said the investment will help the insurtech to expand its digital insurance products into more emerging markets through partnerships with mobile operators, banks, local insurance companies and other distribution partners.

The investment will also allow the startup to accelerate the growth of its product offering with existing partners in East and West Africa.

Inclusivity Solutions has launched its products in Ivory Coast, Rwanda and Kenya in partnership with Orange, Tigo Airtel and Equitel, respectively.

The startup claims that to date, it has through its partnerships, provided cover to more than 530 000 people.

Leach, commenting in the same statement, said the insurtech is “thrilled” to have Goodwell Investments and Allan Gray join existing invesstor RGAx, which invested $2.5-million in Inclusivity Solutions in 2015.

“With this round we have the opportunity to expand our reach to new markets both in Africa and around the globe, ultimately offering valuable insurance protection to millions of emerging consumers,” said Leach.

Robinson explained that in addition to deepening its footprint on the continent, Inclusivity Solutions is also focused on opportunities in the Middle East and Asia Pacific over the next five years.

Inclusive growth focus

Goodwell Investments managing partner Wim van der Beek, commenting in the same statement, explained that the firm’s investment focus is on “inclusive growth” and that the investor believes that collaborative insurtech solutions like Inclusivity Solutions is “best positioned” to reach large numbers of under-served consumers.

“The team at Inclusivity Solutions is very talented and experienced, they have their feet on the ground and they have already achieved significant traction.

“Their model bridges the insurance protection gap for under-served through products that are designed to be simple, affordable and accessible, even on the most basic mobile phone. A perfect fit with our mandate, and we look forward to supporting Inclusivity Solutions in its next stage of growth,” added Van der Beek.

Last November, Inclusivity Solutions was one of nine African startups selected for the Luxembourg House of Financial Technology (LHoFT) Foundation’s Catapult: Inclusion Africa bootcamp in Luxembourg.

Read more: Nine African fintech startups selected for Catapult: Inclusion Africa bootcamp

Update (13 June 2019):  The article has been updated to include comments from Inclusivity Solutions marketing manager Sharon Robinson.

Featured image: Inclusivity Solutions CEO Jeremy Leach (LinkedIn)