MALI – Insurtech start-up OKO, a provider of inclusive agricultural insurance to secure farmers’ income across Africa, has closed a seed investment of US$1.2 million led by Newfund and ResiliAnce.
Mercy Corps Venture, Techstars, ImpactAssets and RaSa also participated in the round.
The start-up headquartered in Mali and operates in Uganda, uses satellite data and mobile payments to create automated insurance products for farmers whose fields are affected adversely by weather occurrences primarily droughts and floods.
With the new funding, OKO aims to strengthen its presence in Mali and Uganda and expand its offerings to more African markets, starting with Ivory Coast.
“Agriculture is by far the largest source of occupation in Africa, with an estimated 33 million farms. And yet, farmers are deprived from basic financial services like insurance and loans.
“We are using technology to solve this issue and secure the income of those farmers,” said Simon Schwall, founder of OKO.
The company already has approximately 7,000 paying customers in Mali and compensated more than 1,000 farmers last year, who were affected by floods.
The start-up’s customers typically grow maize, cotton, sesame or millet and OKO works with agro-industries to help them with their sustainability goals and secure their relationships with suppliers.
Successful pilots were completed with ABInBev and Touton in Uganda.
“Agriculture is by far the largest source of occupation in Africa, with an estimated 33 million farms. And yet, farmers are deprived from basic financial services like insurance and loans.”Simon Schwall – Founder of OKO
The pilot program convinced Augustin Sayer, partner at Newfund, to support OKO, “We believe recent advancement in iOT and data availability will lead to the rise of parametric insurance in Africa for the benefit of the local populations. Simon and his team have built solid bases in Mali from which OKO can now expand in new countries and offer new insurance products.”
OKO takes pride in being the most inclusive crop insurance available and all farmers need to connect to OKO is a phone (no smartphone required), dial a short code to obtain more information and pay through mobile money services.
To achieve this level of accessibility, the company partners with mobile operators.
“OKO has taken full benefit of the Orange Money platform to provide a service that is both innovative and inclusive” says Aicha Touré, CEO of Orange Money in Mali.
Daniel Block from Mercy Corps Ventures added: “While other micro-insurance for farmers exist, we were impressed by OKO’s ability to partner with a Pan-African operator like Orange and establish a direct consumer link, which allows for an exciting opportunity to drive deeper user engagement and expand to a suite of insurance products for rural farmers in the future.”
The service offered by OKO is supported by regulators and has won both the Fintech Showcase Award by the Alliance for Financial Inclusion, representing financial regulators of emerging countries, and the SME award from ITU, the telecommunication governing body.
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