Lami, a Kenyan insurtech raises an additional $3.7m to scale offerings

Kenyan insurtech Lami Technologies set out to enhance insurance penetration in Kenya and the rest of Africa by launching its first product in 2020. It started along this route by developing and distributing an end-to-end digital insurance platform and API that enabled firms from other industries to generate bespoke insurance solutions for their consumers.

With its API platform gaining traction in the insurance industry, the business intends to deliver digital solutions that will digitize agents and brokers, assisting them in streamlining their operations – allowing them to reach a more extensive customer base and sell online. These goals also include helping established insurers to digitize as innovation continues to influence the industry.

On a quest to overcome Africa’s 3% insurance penetration barrier, the insurtech has raised a US$3.7 million seed extension to develop its insurtech product across Africa, increasing the total seed raised by the insurtech to $5.5 million. The fundraising followed an initial $1.8 million round led by seed-stage investment firm Accion Venture Lab, in which AAIC, Consonance, P1 Ventures, Acuity Ventures, The Continent Venture Partners, and Future Africa participated.

Harlem Capital, an early-stage venture firm that invests in seed-stage tech-enabled enterprises headed by minority and female founders led the extension. Early-stage venture capital firm Newtown Partners, as well as Peter Bruce-Clark, a partner at New York’s research-driven venture capital firm Social Impact Capital, Caribou Honig and Jay Weintraub of InsureTech Connect, a networking platform for insurtech innovators, and senior members from Exotix Advisory, a corporate finance and M&A boutique focused on emerging and developing markets, participated in the round.

Jihan Abass, the company’s founder and CEO, said Lami would utilize the additional funding for business development, product and technology development, and expansion into other countries such as Egypt, Nigeria, and Uganda. The API provided by the firm enables companies such as banks to sell digital insurance products to their consumers. Lami has also connected its API with over 15 businesses from various industries, including logistics, e-commerce, banking, and finance.

Among Lami’s partners is the buy now, pay later company Lipa Later, which it supports through payment default insurance for financed products. The insurtech also collaborates with Sendy to provide freight carriers in East Africa (Kenya, Uganda, and Tanzania) with per-trip transit insurance and Kwara to make insurance products available to over 60,000 SACCO (credit union) members. Other clients include Jumia, an e-commerce platform, MarketForce, a retail B2B and end-to-end distribution network, and Stanbic Bank Insurance, which leverages Lami’s technology to power bancassurance products.