Kenyan InsurTech Lami expands the seed round ahead of international expansion efforts

by James · August 2, 2022

Kenya-based InsurTech startup Lami Technologies has raised $3.7 million in its seed extension round as it looks to expand across Africa.

Harlem Capital, an early stage venture firm targeting technology startups with minority and women founders, served as lead investor.

Commitments also came from Newtown Partners, Social Impact Capital partner Peter Bruce-Clark, InsureTech Connect’s Caribou Honig and Jay Weintraub and more.

Funds from the round will help Lami strengthen its business, product and technology development, as well as expand into Egypt, Nigeria and Uganda.

Lami raised $1.8 million in the first round last year. The capital was provided by Accion Venture Lab, Consonance, P1 Ventures, Acuity Ventures, The Continent Venture Partners and Future Africa.

Founded in 2018, Lami aims to solve the problem of low insurance uptake in Africa, which it claims is driven by the slow pace of innovation in the sector, which has left the continent with slow and traditional paper-based systems.

The aim is to bridge the gap through technologies that make insurance affordable through bitesize premiums.

As an example, the partnership with logistics startup Sendy led to the development of a cover that insures goods per trip, with premiums starting at $0.21 for goods worth $85. The product covers items worth up to $7,600 and claims can be processed in less than one week.

The startup is currently working with underwriters in different markets to create an all-risk cover for buy-now, pay-later transactions. This insures against payment default through death, disability, loss of job and many other conditions.

Speaking about the investment in Lami, Harlem Capital principal Gabby Cazeau said: “We believe the next wave of fintech will integrate financial products and services such as insurance into a customer’s shopping experience.

“Lami’s approach to serving people through strategic partners in e-commerce and finance is the best way to build trust with users and deliver insurance in a seamless, accessible way to Africans across the continent. Lami’s impressive growth to date shows that this resonates with customers and has a strong trajectory as they expand across the continent.”

Earlier this year, Lami acquired Bluewave Insurance Agency, an InsurTech startup leveraging mobile technology to reach underserved populations, tapping into Africa’s insurance gap. Through the acquisition, Lami hopes to increase its presence in Africa.