Turaco, is proud to announce the close of USD $2 million in equity to further grow the business and scale its operations in sub-Saharan Africa. The round was led by Novastar Ventures, with participation from Mercy Corps Ventures, Musha Ventures, and Zephyr Acorn, alongside angel investors who were already invested in Turaco. The funding comes a year after the company’s 2019 raise of USD $1.2 million in seed capital. For Turaco, these investors are valued partners that believe that the best way to achieve impact is through profitable, scalable ventures serving the needs of the most underserved.
Turaco Co-founder and CEO, Ted Pantone, says: ‘We are thrilled to partner with Novastar Ventures and all of our other great investors to help build Turaco through the next stage of growth. Our vision is to insure a billion people in the next 25 years. Investors like these will help propel us to that reality.’
Novastar Ventures Partner, Niraj Varia, says: ‘Hundreds of millions of people have their lives disrupted every year by risks that can be managed by insurance. The Turaco team has shown that their model has the potential to bring insurance to them in a way that could fundamentally reshape the way they experience risk. We are excited to partner with them to help solve this problem.’
Mercy Corps Ventures Head of Venture Growth, Hetal Patel, says: ‘Driving inclusion is key to building resilience, and in this case, ensuring access to the coverage and care that we all need to lead healthy, secure and productive lives. By supporting the growth of innovative microinsurance models, like Turaco, we can increase resilience to financial shocks and ensure the 100 million people who get pushed into poverty each year because of healthcare payments have a viable alternative.’
The company launched in 2018 to free people from the fear of unexpected financial shocks. They work towards this by providing simple, useful, and affordable health and life insurance products to emerging market consumers for as little as USD $2 on flexible monthly payment plans. To date, Turaco has insured over 70,000 people and paid over 2,000 claims in an average turnaround time of less than 3 days.
This latest investment will be used to drive growth in their current locations (Kenya and Uganda) and facilitate the business’ expansion into new markets early next year. The capital will also support the testing of new products and channels to drive accelerated impact.
About Turaco
Turaco is an inclusive micro-insurtech startup that frees people from the fear of financial shocks. The company works through sector‑agnostic partnerships with local businesses to design and distribute simple and useful health and life insurance products to their end‑users in emerging markets. Presently, Turaco has a footprint in Kenya and Uganda where they offer low‑cost insurance cover in a bid to actualize its audacious vision of insuring a billion people within the next 25 years, doubling the current global standing. For more information, visit www.turaco.insure.
About Novastar Ventures
Novastar manages venture funds dedicated to finding and growing the “new stars” of East and West Africa. Novastar backs early and growth-stage businesses led by entrepreneurs with the character, capability, and ambition to transform markets and sectors. Novastar has the scale and flexibility to tailor support to the company’s stage of development. Novastar has invested as little as $100,000 in unproven business models with high potential. Following initial small funding rounds, Novastar can then fuel the rapid growth stage of portfolio companies with more than $6 million through multiple capital rounds.