On the heels of a recent $1.50 million (KSh 170 million) investment, Kenyan insurtech startup mTek has secured an additional $3 million (KSh 340 million) investment.
The new investment is through both debt and equity from African-focused fintech platform, Finclusion Group.
The intensified cooperation 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. 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,” said Ms Krogmann.
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. 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,” said Mr. Nuy.
“As health financing reforms in Kenya have peaked stakeholder interests from both the public and private sector, we take a long-game approach to this investment. The ‘one-stop shop’, the holistic plug-and-play insurance tech offering pioneered by mTek is replicable nation on nation, the continent over. We look forward to playing a lead role in that process,” Nuy added.
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 (1) million users through its innovative insurance offering by 2024 as it achieves its mission to provide insurance to the uninsured.