KENYA – mTek, an insurtech startup, has secured an additional US$3 million investment through both debt and equity from African-focused fintech platform, Finclusion Group.
The startup had secured US$1.50 million (KSh170 million) investment from TrustGro- a non-deposit taking microfinance company to support the startup operations which primarily allows Kenyans access to paperless insurance products by partnering with local underwriters.
The intensified cooperation with Finclusion seeks to accelerate mTek’s growth into the Kenyan marketplace through continual improvements to the platform and via the expansion of its customer base.
mTek’s Chief Executive Officer, Ms. Bente Krogmann, stated that the investment is a milestone for the organization and an indication of Pan-African investors’ confidence in the insurtech’s purpose, business model and philosophy.
“With this investment, we will be able to commence our expansion within Kenya through 25 Finclusion Group branches where we will offer agents training,” said Ms Krogmann.
“The investment will help us to create fully digital, market-ready insurance offerings that will be both easily accessible and affordable for the uninsured. We hope to be able to further expand into six African countries over the next two years.”
Finclusion Group is an African-focused fintech platform building out a complete neobank offering for its users. Today, Finclusion Group provides among its myriad services, earned-wage access, BNPL and a direct credit offering, hosting a presence in South Africa, Eswatini and Namibia in Southern Africa, and Kenya and Tanzania in East Africa.
Finclusion Group Chief Executive Officer, Mr. Timothy Nuy, added that mTek’s capability to offer paperless insurance addressed a critical market pain-point, while noting that mTek’s continued growth and customer value-addition aligns perfectly with the fintech platform’s vision and expansion model.
“As a Group, we remain committed to driving financial inclusion on the African continent through innovative technology and also significant investments that can broker lasting change, identifying and addressing market needs, both present and future,” said Mr. Nuy.
“mTek’s platform has allowed for greater transparency in both the insurance and telehealth industries and we are pleased to partner with such technology that delivers – for the first time – paperless insurance in Africa.”
Since launching its platform in 2020, mTek has seen consistent and compelling growth, doubling its customer base and gross written premium every quarter to date through its revolutionary 100% paperless insurance.
The insurtech has also partnered with over 35 Kenyan underwriters to consistently provide its clients with a better and transparent experience while purchasing and renewing their insurance policies.
mTek expects to reach one million users through its innovative insurance offering by 2024 as it achieves its mission to provide insurance to the uninsured.
Recently, mTek partnered with MUA Kenya, a general insurer, and The Unisure Group, a global insurance solutions provider to provide an affordable international health insurance cover dubbed ‘Umatter.’
Under the partnership, customers will enjoy a worldwide insurance cover excluding the USA and Canada. They will be covered wherever they are in the world for whatever reason business, holiday, relocation or in their home country.
The insurtech market has seen growth with the rise of connected devices to financial services even as more companies seek business efficiency. Globally, the insurtech service market is expected to grow from US$8.07 billion in 2021 to US$10.42 billion in 2022. With a CAGR of 7% between now and 2025, Africa looks set to be the new emerging market to watch (Statistica).