ICMIF member IBISA, a climate insurtech company, announced this week it has closed a USD 3 million funding round to scale its parametric insurance solutions for weather-related risks in Asia and Africa. The round was led by The Acumen Resilient Agriculture Fund (ARAF) and Equator, alongside the Asian Development Bank Ventures (ADBV) and existing investors including Ankur Capital. This strategic investment will empower IBISA to make parametric insurance more accessible.
According to the UN Food and Agriculture Organisation, the global cost of extreme weather events on agriculture is currently estimated to be between USD 10-15 billion annually. In response to the growing severity and frequency of these events, IBISA aims to provide simple and efficient parametric insurance products to help those affected by the climate crisis. Leveraging innovative satellite and actuarial technologies, IBISA designs and operates parametric insurance products that promote financial resilience in regions where communities are the most vulnerable to the impacts of extreme weather events. The company is placing a special emphasis on India, since establishing a local presence there in 2023.
Currently, IBISA offers a suite of innovative climate coverages tailored to meet the needs of multiple stakeholders worldwide. These include agricultural-focused insurance products, as well as typhoon insurance, and loan protection for financial institutions. Additionally, IBISA has developed a groundbreaking heat stress product insurance initially designed for dairy farmers, primarily in India, that is currently being expanded in other countries, such as Bangladesh.
IBISA says the funding will enable it to build more pioneering products and expand further into emerging markets.
Maria Mateo, CEO of IBISA said: “Since the beginning at IBISA, we have functioned with great agility as product innovators and bringing these products to market efficiently. This is what drives us. This is our DNA. Now, we are entering the industrialisation phase of our journey. With the backing of this fundraising effort and the support of both existing and new investors, our goal is to amplify our product offerings, expand within our current markets, and explore new markets.”
ARAF and Equator led this funding round. ARAF is an impact fund dedicated to building the climate resilience of smallholder farmers which targets equity investments in agricultural businesses that support climate adaptation. Equator is a venture capital firm which invests in technology-enabled, early-stage ventures in agriculture, energy and mobility sectors in Sub-Saharan Africa.
Tamer El-Raghy, Managing Director of ARAF said: “We’re honoured to co-lead this investment round in IBISA with Equator and excited to partner with a world-class entrepreneur like Maria. African farmers are among the most negatively impacted by climate change and the need for low-cost parametric insurance products is a must-to-have for those farmers to be able to absorb a climate shock and IBISA’s cutting-edge technology helps developing low-cost insurance products for those farmers. This investment is an invaluable addition to ARAF’s portfolio and we look forward to supporting IBISA’s regional growth.”
Nijhad Jamal, Managing Partner of Equator, added: “Investing in IBISA aligns with our strategy to back innovative ventures providing critical climate adaptation products and services. IBISA’s technology and business model specifically enable it to scale access to a broad range of affordable parametric insurance products across emerging markets.”
Photo shows: IBISA team
