Cassava raises $4m in pre-seed round
By Jeph Ajobaju, Chief Copy Editor
Cassava has raised $4 million to expand its microinsurance digital platform, in the largest pre-seed round for an African insurtech firm and second-largest for a Nigerian startup after Nestcoin.
Nestcoin recently received $6.45 million to support customer acquisition and growth as well as develop the product and the technology stack.
Cassava funding round was led by Target Global based in Berlin with participation by foreign venture capitalists (VCs) and angel investors such as Entrée Capital, Oliver Jung, Tom Blomfield, Ed Robinson, and Brandon Krieg.
Other local investors include
- Uche Pedro (BellaNaija founder)
- Babs Ogundeyi and Musty Mustapha (Kuda founders)
- Shola Akinlade (Paystack co-founder)
- Olugbenga “GB” Agboola (Flutterwave co-founder)
- Honey Ogundeyi (Edukoya founder)
- Opeyemi Awoyemi (Jobberman co-founder)
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Providing affordable insurance
“Our mission is to provide affordable insurance for Nigerians and other Africans and we are happy to have raised these funds from an exciting group of investors.
“With less than 1 per cent of the country insured, Nigeria (with Africa) is an untapped insurance market.
“We want to address the barriers that hinder adoption and add value to consumers across the country,” said Cassava founder and CEO Bode Pedro, per Nairametrics.
Ricardo Schäfer, a partner at Target Global, commended Pedro and his team for recognising an opportunity to address long-standing problems for many Nigerians and Africans.
“We are excited to support their mission to make insurance more accessible. Cassava has the potential to transform the lives and livelihood of millions of people,” Schafer said.
In the view of Avi Eyal, General Partner at Entrée Capital, “the Cassava team has developed a unique and disruptive product that we believe has the potential to transform Africa’s insurance market.”
About Cassava
Cassava says it has more than 66,000 customers, with $16 million in insurance coverage, and works with reinsurance partners who guarantee a refund when claims are paid as a licensed microinsurance underwriter.
It also generates funds off subscription fees.
Pedro, a veteran entrepreneur, has built many successful companies – including Veda Technology, one of Nigeria’s premier computer hardware manufacturers.
He leverages artificial intelligence and behavioural science to deliver changing claims and benefits products starting with income protection and health insurance.