Following a recent $1.50 million (KSh 170 million) investment that enabled Kenyan citizens to gain greater, real-time access to health insurance and other general insurance products, Kenyan insurtech and digital insurance platform mTek has secured an additional investment commitment totaling $3 million (KSh 340 million) — through both debt and equity.
“With this investment, we will be able to commence our expansion within Kenya through 25 Finclusion Group branches where we will offer agents trainings. The investment will help us to create fully digital, market-ready insurance offerings that will be both easily accessible and affordable for the uninsured. We hope to be able to further expand into six African countries over the next two years,” Bente Krogmann, Chief Executive Officer of mTek said, adding that the investment is a milestone for the organisation and demonstrates Pan-African investors’ faith in the insurtech’s purpose, business model, and philosophy.
The investment aims to speed mTek’s entry into the Kenyan market by continuously improving the platform and expanding its customer base.
Why The Investors Invested
The startup has recorded some considerable traction since it was founded. mTek claims it has seen sustained and impressive growth since launching its platform in 2020, tripling its customer base and gross written premium every quarter to date through its breakthrough 100 percent paperless insurance. In addition, the insurtech has worked with over 35 Kenyan underwriters to provide its clients with a better and more transparent experience while obtaining and renewing insurance policies.
“As a Group, we remain committed to driving financial inclusion on the African continent through innovative technology and also significant investments that can broker lasting change, identifying and addressing market needs, both present and future. mTek’s platform has allowed for greater transparency in both the insurance and telehealth industries and we are pleased to partner with such technology that delivers — for the first time — paperless insurance in Africa,” Finclusion Group Chief Executive Officer, Mr. Timothy Nuy, said, adding that mTek’s capability to offer paperless insurance addressed a critical market pain-point, while noting that mTek’s continued growth and customer value-addition aligns perfectly with the fintech platform’s vision and expansion model.
“As health financing reforms in Kenya have peaked stakeholder interests from the both the public and private sector, we take a long-game approach to this investment. The ‘one stop shop’, the holistic plug and play insurance tech offering pioneered by mTek is replicable nation on nation, the continent over. We look forward to playing a lead role in that process,” Nuy added.
Finclusion Group is an African-focused fintech platform that is developing a full-service neobank product for its users. Finclusion Group now offers, among other things, earned-wage access, BNPL, and a direct credit offering, with offices in South Africa, Eswatini, and Namibia in Southern Africa, and Kenya and Tanzania in East Africa.
A Look At What The Startup Does
mTek, founded in 2020, is a digital internet insurance platform that offers the insurance business a totally paperless ecosystem. Through digital transformation, the insurtech company is focused with levelling the playing field by making insurance more approachable. Customers can use their smart devices to buy insurance directly from the insurer, compare insurance policies, and file claims.
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As part of its objective to provide insurance to the uninsured, mTek expects to reach one million users through its revolutionary insurance offering by 2024.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh