MyCover.ai, an insurtech company based in Nigeria, has just secured a US$1.25 million pre-seed fundraising round, which it will use to bring on more tech expertise, improve its operational activities and patented technology, and grow systematically into other African countries.
Ventures Platform led the $1.25 million pre-seed round, with participation from Founders Factory Africa and Techstars as a follow-on investment following the accelerator programme the company attended in 2022 in Toronto.
The firm simplifies the claims process for both insurance providers and users by working at all three stages of the business cycle: underwriting, product development, and distribution. Through its open insurance API, the company connects to top insurers like Hygeia, Leadway, Sovereign Trust, AIICO Insurance, and Allianz to provide over 30 customised insurance options. This paves the way for other companies and innovators to incorporate these insurance options into their own platforms.
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Transforming the insurance context in Nigeria
CEO and co-founder of MyCover.ai, Adebowale Banjo said “The current insurance landscape is plagued by fragmentation and inefficiencies, which impede distribution and adoption.” Many clients continue to face substantial challenges in obtaining affordable, accessible, and seamless insurance, and we are thrilled to be at the forefront of change, developing a strong infrastructure that tackles these key concerns front 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.”
Banjo and his team, according to Dotun Olowoporoku, general partner at Ventures Platform, are transforming the insurance context in Nigeria and have a goal set on the larger African market.
“Unlike other insurtech solutions, MyCover.ai takes a collaborative approach and offers a suite of services that cover the entire spectrum of these challenges.” “We believe in their vision and operational track record, and we are excited to support their growth as they continue to empower businesses and individuals through scalable and innovative insurance solutions,” he added.
A look into the MyCover.ai
Founded in 2021, MyCover.ai seeks to improve the insurance industry in Africa by tackling issues including low product quality, high prices, and bad customer service.
Over US$1 million in gross written premiums and excellent collaborations with top insurance carriers in Nigeria have helped MyCover.ai rise to prominence since its inception.
MyCover.ai has focused on product development, distribution, and insurance claims in addition to solving accessibility and distribution difficulties. Hygeia, Leadway, Sovereign Trust, AIICO Insurance, and Allianz are just a few of the insurance companies the firm has partnered with. In addition, it has established relationships with a wide range of industries, including fintechs, proptechs, e-commerce firms, and BNPL platforms, all of which have access to its suite of over 30 bespoke insurance products.
Participating in Techstars Toronto’s programme a year ago helped elevate MyCover.ai’s profile just in time for this round.