MyCover.ai Secures $1.25M Pre-Seed Funding to Expand Across Africa

13 Jun 2024

MyCover.ai Secures $1.25M Pre-Seed Funding to Expand Across Africa

MyCover.ai, an insurtech startup aiming to revolutionize Africa's insurance landscape, has successfully closed a $1.25 million pre-seed funding round. The funding will be utilized to strengthen internal operations, invest in proprietary technology, and strategically expand into other African markets. Ventures Platform led the pre-seed round, with participation from Founders Factory Africa and TechStars, the latter being a follow-on investor after MyCover.ai's involvement in the 2022 Toronto Accelerator program.

Adebowale Banjo, CEO, and co-founder of MyCover.ai, emphasized the current challenges faced by the insurance industry in Africa, including fragmentation and inefficiencies that hinder distribution and adoption. The startup aims to address these issues head-on and provide affordable, accessible, and frictionless insurance products to customers across the continent.

MyCover.ai's mission is to improve insurance access and provide financial security to Africans. With over 50% of African countries having insurance penetration rates below 2%, the startup's suite of products is designed to bridge this gap and tackle issues like inadequate coverage and poor customer experience.

The company operates through three crucial touchpoints: underwriting and product development, distribution, and insurance claims. By offering an open insurance API that integrates with leading insurance companies, MyCover.ai provides over 30 personalized insurance products that can be embedded into other businesses' platforms. This collaboration ensures faster and cost-effective distribution, access to customer utilization data, simplified onboarding and policy management processes, and opportunities to reach new customer segments.

With strong partnerships and a wide range of products, including the B2B platform MyCoverGenius, MyCover.ai is transforming the insurance industry in Nigeria and beyond. The African insurance market is projected to grow significantly, and MyCover.ai's innovative approach positions them as a catalyst for change.

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