Summary
- mTek has raised $1.25 Million in an undisclosed round led by Verod-Kepple Africa Ventures and Founders Factory Africa.
- It will use part of the money to further strenghten its strategic partnerships with underwriters, intermediaries and other stakeholders in the insurance ecosystem.
- mTek also plans to leverage AI and machine learning to improve its products and services.
mTek, the digital online insurance platform, has secured $1.25 million (over Ksh 168 million) in funding to power its expansion in Kenya and across East Africa. This undisclosed funding round was led by Verod-Kepple Africa Ventures and Founders Factory Africa.
mTek makes it easier to purchase insurance directly from the insurer, compare insurance policies and even file claims through a smartphone. Besides that, the company also provides White Label / SaaS solutions to other industry stakeholders to improve their operations and distribution.
The latest funding round is expected to help the company solidify its position as a leader in insurtech innovation. Commenting on this, mTek CEO Bente Krogmann said, “We are excited to have Verod-Kepple Africa Ventures and Founders Factory Africa as part of team mTek as we are building Africa’s No. 1 platform as a service for the insurance ecosystem. We are now looking forward to further strengthening our strategic partnerships with underwriters, regulatory bodies, banks, intermediaries, enterprises and other stakeholders in the industry to foster innovation, expand access to insurance, and create value for end-users and the wider insurance ecosystem.”
Ms Krogmann also said they plan to leverage AI and machine learning along with product innovation to streamline processes, enhance customer experiences and improve operational efficiency across the insurance value chain.
Ory Okolloh, a partner at Verod-Kepple Africa Ventures, said mTek has a strong potential to address the insurance penetration gap through technology and strong partnerships. According to KPMG, insurance penetration in Kenya is as low as 3% and is the third lowest in Sub-Saharan Africa.
Philani Mzila from Founders Factory added, “As Founders Factory Africa, we are excited to partner with mTek. By providing customers with greater choice and partnering with insurers to optimise their distribution, mTek is making insurance increasingly accessible wherever it operates and lowering costs for all parties in the industry.”
Insurtech on the rise
Turaco, another insurtech startup, closed a $10 million Series A round in 2022 led by AfricInvest and Novastar Ventures. The startup has since expanded to Ghana through the acquisition of MicroEnsure Ghana in 2023. Turaco currently operates in 4 countries including Kenya, Uganda, Nigeria and Ghana.
mTek mainly operates in Kenya boosting over 250,000 customers and says has generated over 50,000 quotes. Some of its insurance partners include UAP Old Mutual, ICEA Lion, Jubilee Insurance, Britam just to name a few.
As more funding flows to the insurtech sector, expect to see better and more competitive products from existing players and even new players.
Read: South Africa’s Parcel Shipping Platform, TUNL, Raises $1 Million in Pre-Seed Funding