Nigerian Insurtech Startup Curacel Raises $3M In Seed Funding To Expand Into North Africa

curacel

The top provider of insurance infrastructure in Africa, Curacel, has raised $3 million in seed money to launch innovative technological solutions that will power the continent’s next-generation insurance experiences. The company’s expansion into North Africa will also be assisted by the new finance.

Tencent, AAF Management, Elefund, Blue Point Capital Partners, Pioneer Fund, Olive Tree Capital, Y Combinator, James Park, CEO of Fitbit, Olugbenga ‘GB’ Agboola, CEO of Flutterwave, Babs Ogundeyi, CEO of Kuda, and other strategic investors were all part of the seed funding round. Elefund also invested in Sure and Flutterwave. As part of the financing, senior executives from Covergenius, Zopper, and Pie Insurance will also join Curacel’s advisory board.

“We are bullish on the potential of the right technology in the right places to close the protection gap across Africa and emerging markets. It is an exciting time for us as we secure the capital to deliver the vision and onboard the people who have built these technologies at scale in more mature markets, and we are looking forward to delivering more technology solutions to drive up insurance inclusion,” Henry Mascot, CEO and co-founder of Curacel, said. 

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The new capital will allow the business to expand its services across North Africa, beginning in Egypt and Morocco, and further establish its footprint elsewhere on the continent.

Why The Investors Invested

Working with more than 20 insurers and more than 5,000 service providers in 8 different nations throughout the continent, Curacel has handled claims totaling more than $100 million. Curacel had a 600% rise in transaction volume and a 500% increase in revenue in 2022.

Omar Darwazah, Managing Director and General Partner at AAF Management, said “at less than 3%, the insurance penetration rate in Africa is one of the lowest in the world, presenting an incredible market opportunity for Henry and the team at Curacel to bridge that insurance gap. We are excited to participate in the company’s Seed round and join Curacel’s mission in building easy-to-use technology solutions for insurers to distribute their products on the continent.”

Serik Kaldykulov, General Partner at Elefund, said “Africa remains a relatively untapped market when it comes to insurance and technology presents the best opportunity to reach new users and deliver excellent services. Curacel has built a suite of solutions and an impressive track record of success that makes us very excited to be supporting them on their mission to use technology to drive up insurance inclusion in Africa.”

A Look At What The Startup Does

By providing them with simple-to-use technological solutions that have been especially created to increase insurance inclusion on the continent, Curacel makes it simpler for insurers to market their policies, simplify their claims processes, and drive revenue growth. With the help of Grow, Curacel’s embedded insurance product, more than 100 banks, fintechs, logistics providers, and other tech-enabled businesses, including ALAT (Nigeria’s first digital bank), Providus, PalmPay, Float, and others, are now able to boost their recurring revenues by providing digital insurance products that are seamlessly integrated into their current goods and services, fostering much-needed insurance penetration and client loyalty.

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Leading insurers including AXA Mansard, Liberty Health, Old Mutual, and Jubilee Health all use Curacel’s technology, which leads the market, to enhance the speed and accuracy of their claims processes. The company’s AI-powered infrastructure enables real-time claim submission and processing, allowing insurers to process up to 10 times more claims while cutting their claims cycle by more than 70%.

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

Nigerian Insurtech Startup Curacel Secures $450k Pre-seed Funding

Curacel, a Lagos-based AI-powered platform for claims processing and fraud management in Africa has raised $450,000 in pre-seed funding which would help the company to achieve its aim of being Africa’s leading provider of embedded finance technology for insurance.

Curacel Co-founder and CEO, Henry Ifeanyi Mascot
Curacel Co-founder and CEO, Henry Ifeanyi Mascot

“We are excited to have these investors on board and we are looking forward to partnering with them to drive our vision of improving insurance inclusion across Africa. At Curacel, we are uniquely positioned to safeguard livelihoods and increase the quality of life through our unique, market-leading products and services,” Curacel Co-founder and CEO, Henry Ifeanyi Mascot said. 

Here Is What You Need To Know

  • This round of investment was led by Atlantica Ventures and Consonance with participation from Kepple Ventures and other African angel investors.
  • Curacel’s expansion across Africa will be aided by the latest funding. 
  • Curacel also plans to launch Curacel Money, a cash advance programme that will make it easier for healthcare providers to access working capital to help them deal with financial difficulties.

Why The Investors Invested

Co-founded in 2019 by former Global Head — Technology, Media & Telecom Group at the IFC, Aniko Szigetvari, Atlantica Ventures is a VC based in Washington DC, United States. In January 29, it led a $20 million Series B round in Kenyan logistics startup Sendy. ‘‘We are searching for the next generation of African entrepreneurs,’’ the VC notes on its website. “We are investors that provide capital to early stage companies in addition to growth support, guided by our decades of experience and global relationships.’’

“The African insurance market represents a significant growth opportunity and we are delighted to be partnering with Curacel to drive growth in this sector. There is an opportunity to create an entirely new market of products and services here and we look forward to supporting the team to improve health outcomes across the continent,” said IK Kanu, Partner at Atlantica Ventures. 

For its part, investor Consonance Investment Managers has been very active on the African startup scene. Headquatered in Mauritius, but operating from Lagos, its notable investments include its $2 million co-investment in Ethiopian edtech startup Gebeya; its $1 million participation in the Nigerian healthtech company Lifestore in February this year; its co-funding in another Nigerian startup VerifyMe. Other notable startups on its portfolio include MDaas Global; She Leads Africa; Curacel, among others.

“We believe the Curacel team has what it takes to be market leaders and we are excited to support them. They have a great product and we are delighted to be coming on board at this early stage,” Mobolaji Adeoye, Managing Partner at Consonance added.

Japanese VC Kepple Africa Ventures, active since 2019, has invested in car listing platform AutoChek, Kenya’s UTU Tech, among others. 

Read also: Japanese Venture Capital Firm Uncovered Fund Launches New $15m Fund For African Startups

A Look At What Curacel Does

Founded in 2017 by Henry Ifeanyi Mascot, Curacel’s AI-powered platform enables insurers to automate claims seamlessly and also track fraud, waste and abuse (FWA). AXA Mansard, Liberty Health, and Old Mutual are among the insurtech startup’s clients, as are more than 800 hospitals in Nigeria, Ghana, and Uganda. By the end of 2021, it aims to grow into ten new African countries.
African insurers lose over $12 billion per year due to fraudulent, inefficient, and abusive claims.

Curacel’s flagship CLAIMS platform serves as a link between primary care hospitals and Africa’s insurance providers, using advanced artificial intelligence to ensure that insurance companies only fund claims for necessary services, drugs, and patient therapies.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer