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Uganda’s Turaco Acquires MicroEnsure Ghana in a Bid to Expand Accessible Insurance Across Africa

September 20, 2023

MicroEnsure Ghana, a pioneering microinsurance company, is set to undergo a transformative change following its acquisition by Africa’s leading tech-enabled affordable insurance provider, MicroEnsure. The acquisition, which comes as part of MicroEnsure’s long-term vision to extend straightforward and accessible insurance coverage to a billion individuals globally, will see the company rebranded as Turaco Ghana while retaining the expertise and leadership of its current team.

This strategic move expands Turaco’s operational reach to four key African markets, including Kenya, Uganda, Nigeria, and now Ghana, bolstering its active policies by an impressive 25 percent. This development is expected to bring significant benefits to both new and existing customers, with enhanced tech-driven processes aimed at reducing claim turnaround times and optimizing service offerings.

Furthermore, this acquisition opens doors for Turaco to strengthen partnerships with industry incumbents and forge a strategic reinsurance alliance with MIC Global, a renowned leader in micro-reinsurance globally.

Ted Pantone, Co-founder & CEO of Turaco, expressed enthusiasm about the deal, stating, “This deal marks a significant milestone for our growth and expansion strategy for Africa and a strategic move to drive innovation into a market that has one of the continent’s highest insurance coverage rates. We are excited about the opportunity of building on the 15-year legacy of MicroEnsure and leveraging our customer-centric tech solution to provide affordable and accessible cover. Turaco Ghana is a fantastic team with lots of enthusiasm and most importantly, expertise for this next chapter, which we’re confident will make this transition period seamless for our partners and customers.”

Ghana, as per 2021 census data, boasts one of the highest insurance coverage levels in Africa, with more than 60 percent of its population holding either the National Health Insurance Scheme (NHIS) or private health insurance. However, millions of Ghanaians still lack access to healthcare, with over 10 percent facing significant financial hardships due to yearly health expenses. Those who do have insurance often grapple with complexities and slow claims processing.

Leona Abban, General Manager of Turaco Ghana, reflected on the company’s history of pioneering microinsurance in Africa, stating, “As a pioneer of microinsurance in Africa, we focused on making an impact while providing affordable insurance to low-income customers. Over our 15-year history, our inclusive approach has benefited 3 million Ghanaians with the safety net of being insured. As we move into this next growth phase as Turaco Ghana, we look forward to leveraging our in-market experiences to improve our approach further and capture additional segments of the market that have historically been excluded.”

Turaco Ghana, previously known as MicroEnsure, has been a trailblazer in microinsurance intermediation in Ghana. It was the first to introduce mobile insurance through partnerships with Tigo in 2012 and Airtel in 2013, serving a substantial customer base of 3 million. In 2020, the company extended insurance protection to 4,000 Micro, Small, and Medium Enterprises in Ghana, offering comprehensive life and business protection in collaboration with the United Nations Capital Development Fund. Turaco also launched a health protection plan for Vodafone Ghana customers in the same year.

Harry Croydon, Co-Founder & COO of MIC Global, expressed confidence in the acquisition, stating, “I am delighted to partner with Turaco as they take over management and operations of MicroEnsure Ghana (now Turaco Ghana). We are confident that our micro-insurance products and the unique Turaco model will drive continued success in providing millions of customers the insurance safety net they need.”

Turaco, launched in 2019, stands out with its technology-driven approach to make affordable insurance more accessible. Operating on a B2B2C model, Turaco forges partnerships with tech-enabled mass-market companies, including telecommunications, banks, and fintech firms, to seamlessly integrate insurance into their offerings. This white-labelled approach allows partners to bundle insurance with their core products or services, streamlining premium collection through existing payment processes. Thanks to proprietary algorithms, Turaco ensures that claims are processed swiftly, with a commitment to completing claims within three days.

Liquid Intelligent Technologies Improving Connectivity, Driving Intra-African Digital Trade

Through its active partnerships, Turaco has developed customized insurance packages, covering various aspects such as medical, life, assets, and vehicles, reaching over 1,300,000 individuals across Nigeria, Kenya, Uganda, and now Ghana. This acquisition is poised to propel Turaco further on its mission to provide essential insurance coverage to underserved populations throughout Africa.

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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

Turaco: First Mover in Ugandan Insurtech Landscape with First Underwriting License

August 23, 2023

In a significant leap for the Ugandan insurtech scene, Turaco, a prominent player in the African insurance technology sector, has clinched the distinction of becoming the first insurtech company in Uganda to secure an underwriting license. This groundbreaking achievement comes with a pledge to spearhead the provision of accessible and straightforward microinsurance offerings, aimed at bridging the insurance gap for underserved communities across Uganda. This milestone aligns seamlessly with Turaco’s global ambition of extending insurance coverage to an impressive one billion individuals.

Under the umbrella of “Turaco Microinsurance,” the company is poised to develop and distribute uncomplicated insurance products tailored to the specific risks faced by mass-market customers. Impressively, these policies will kick off at an astonishingly low UGX1,000 per month. Distinguishing itself through a customer-centric approach, Turaco Microinsurance vows to present terms and conditions so succinct that they can be encompassed within just three SMS messages. Even individuals unfamiliar with insurance will be empowered to comprehend their policies and the extent of their coverage.

In its role as an underwriter, Turaco Microinsurance is set to revolutionize the enrollment process by seamlessly integrating with distribution partners’ systems through APIs. This integration will empower customers to access insurance coverage at the mere touch of a button. Notably, the company is committed to expediting claims processing, with claims slated to be paid out within hours. This efficiency is expected to foster a new level of trust both in insurance products and the broader insurance industry.

Turaco Microinsurance Company stands as the Ugandan arm responsible for underwriting within the Turaco Group, an all-encompassing Pan-African embedded insurtech endeavor. This larger initiative is dedicated to fostering financial resilience in emerging markets through affordable and straightforward health and life insurance options designed for underserved populations. Since its establishment in 2019, Turaco has already made its presence felt in Kenya, Uganda, and Nigeria.

Turaco license — Hon. Evelyn Anite (left) the State Minister of Finance for Investment, Hamza Mutebi (centre), the Turaco Microinsurance Company General Manager and Bernard Obel, the Insurance Regulatory Authority (IRA) Director Supervision. Credits: Turaco

By partnering with leading mobile network operators, technology-enabled companies, and microfinance institutions, Turaco has been able to effectively distribute accessible insurance products to its customer base. Remarkably, individuals can secure insurance coverage with premiums starting as low as USD1 per month. The company’s claims processing time, clocking in at less than three business days, ensures that policyholders receive their rightful compensation promptly. Thus far, Turaco has successfully insured over a million lives and facilitated the settlement of more than 15,000 claims.

Hamza Mutebi, the General Manager and Principal Officer of Turaco Microinsurance Company, articulated the significance of this achievement during the official launch. “Today marks a monumental achievement for Turaco,” Mutebi stated, highlighting the journey from their origins as an agency to their current status as an underwriting entity. This license acquisition paves the way for the creation and dissemination of affordable and accessible products, thus enabling Turaco to extend its reach to even more underserved individuals while harnessing technology for efficient claims processing.

Bernard Obel, the Director of Supervision at the Insurance Regulatory Authority (IRA), emphasized the necessity of innovation in microinsurance. He underlined how microinsurance targets a demographic often unfamiliar with insurance concepts and stressed the need for insurers to craft easily comprehensible products. Turaco’s pivotal role in expanding insurance accessibility to the mass market through strategic distribution was acknowledged. He expressed the regulatory body’s commitment to collaborating with Turaco and the insurance industry at large to develop products, define governance, and establish service standards.

The dire consequences of health emergencies for low-income households in Africa were also highlighted. Limited financial resiliency frequently renders these households vulnerable to unforeseen medical costs, often plunging them into poverty. Shockingly, over 14 million low-income households are pushed into poverty annually due to health-related expenses. In Uganda, more than 15% of the population faces catastrophic health expenses each year. Unfortunately, insurance adoption remains low, with a mere 2% of individuals in sub-Saharan Africa being insured, and less than 1% of Ugandans holding insurance coverage.

Turaco Microinsurance aspires to leverage its triumphant technology-driven insurance distribution model to bolster insurance penetration in Uganda. The company plans to blend Turaco’s user-friendly policy sign-up process and expedited claims processing via WhatsApp with its newfound underwriting capacity, enabling the creation of innovative and affordable insurance products.

In a landscape characterized by limited insurance coverage and understanding, Turaco’s acquisition of the underwriting license is set to be a transformative step. As it forges ahead with its mission of insuring one billion lives in Africa, Turaco’s pioneering strides will likely serve as an inspiration to other players in the industry to prioritize innovation, accessibility, and simplicity in the realm of microinsurance.

Turaco license Turaco license

Why Nigeria’s Moniepoint is Going to Kenya and What It Means for the Fintech Space

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

How Africa-Focused Insurtech Startup Turaco Attained 1M Active Customers in 4 Years

June 20, 2023

In an impressive feat, Turaco, the African insure-tech company committed to providing affordable insurance solutions, has announced that it has surpassed a significant milestone of insuring over 1,000,000 lives four years after it was founded in 2019. With a $10 million Series A funding secured in September 2022, Turaco has leveraged this investment to achieve rapid growth. Operating in Nigeria, Kenya, and Uganda, Turaco has successfully offered a much-needed safety net against financial shocks to mass market consumers.

Ted Pantone, the CEO and Co-Founder of Turaco

This remarkable achievement includes 350,000 new customers who joined Turaco’s insurance program within the last three months. This surge in customer uptake can be attributed to the company’s recent partnership with Airtel Money Uganda and Prudential Uganda. The overwhelming response underscores the demand for Turaco’s innovative and customer-centric products and approach. The Airtel Hospital Sente product, designed to be user-friendly and accessible, offers a simple two-step USSD sign-up process and ensures an average turnaround time of 15 hours for claims processing and payment.

To understand the significance of Turaco’s milestone, one must consider the alarming statistics in Africa. Every year, an estimated 89 million Africans face catastrophic health events, often spending up to 10% of their income on a single incident. Shockingly, these health emergencies push 14 million Africans into poverty annually. One of the contributing factors is the lack of insurance coverage, as less than 2% of individuals in East and West Africa have access to insurance. Turaco is determined to bridge this gap by expanding access to affordable and straightforward insurance products.

Turaco’s key strategy lies in forming partnerships with leading tech-enabled companies, including M-KOPA, Paga, One Acre Fund, and Vision Fund. Through these collaborations, Turaco designs white-labeled insurance products, allowing customers to sign up and pay for insurance while purchasing other goods or services. This strategic approach has proven successful, as Turaco achieves a conversion rate of over 50% when selling insurance through these partnerships. By addressing price points and ensuring a frictionless and efficient distribution model, Turaco has created a value proposition that resonates with customers and meets their specific needs.

Ted Pantone, the CEO and Co-Founder of Turaco, expressed his excitement about surpassing the 1 million customer mark, emphasizing the impact it has on individuals and communities. He said, “This number represents 1,000,000 individual mothers, fathers, children, and community members that have access to better healthcare and improved financial resiliency as a result of Turaco insurance. We are excited to continue on our path to 1 billion people insured.”

Turaco’s sustainable business strategy has facilitated its expansion, with operations now established in Uganda and Nigeria. The company is actively seeking further partnerships to accelerate the adoption of mass market insurance across Africa. The collaboration with pay-as-you-go firms like M-KOPA, ride-hailing platforms such as SafeBoda, fintech companies, and microfinance institutions allows Turaco to offer insurance bundled with their main products or services through API integration. Customers can secure life, asset, medical, and auto insurance for as little as $0.2.

Pantone emphasized the demand for insurance among Africans and the importance of designing and selling products with a focus on affordability and a seamless customer experience. He stated, “Demand is not the issue. People actually really want to buy insurance if it’s designed appropriately for them from a price point value proposition, and if it’s sold in a frictionless, efficient manner. So, most of our innovation is really around the distribution model. That’s really the key we are fixing to make it really easy for people to say yes, and then pay for insurance.”

In summary, here are the key strategies that enabled Turaco achieve this milestone:

Strategic Partnerships: Turaco formed partnerships with influential tech-enabled companies, including Airtel Money Uganda, Prudential Uganda, M-KOPA, Paga, One Acre Fund, and Vision Fund. These collaborations enabled the design of white-labeled insurance products, allowing customers to easily sign up and pay for insurance while purchasing other products or services.

Customer-Centric Approach: Turaco’s commitment to customer satisfaction is evident in its innovative and simplified processes. The two-step USSD sign-up process and the average 15-hour turnaround time for claims processing and payment have resonated well with customers, highlighting the company’s dedication to providing simple and user-friendly experiences.
Addressing Urgent Needs: Turaco identified the pressing issue of catastrophic health events affecting 89 million Africans annually, leading to significant financial burdens and pushing 14 million individuals into poverty each year. By offering affordable and accessible insurance products, Turaco addresses these needs and empowers individuals with better healthcare and improved financial resilience.
API Integration with Partners: Turaco leveraged API integration to collaborate closely with partners such as PayGo firms like M-KOPA, ride-hailing platforms like SafeBoda, fintech companies, and microfinance institutions. By bundling insurance with their primary goods or services, Turaco significantly expanded its reach and achieved a high conversion rate, as low as $0.2, for life, asset, medical, and auto insurance.
Innovative Distribution Model: Recognizing the limited insurance penetration in Africa due to outdated procedures and excessive paperwork, Turaco revolutionized the distribution model. By employing disruptive technology and efficient sales processes, Turaco ensured a frictionless and efficient experience for customers, enabling a higher acceptance rate and driving demand for insurance products.

While insurance penetration in Africa remains below 3%, the emergence of insurtech companies like Turaco signifies a turning point for the industry. Traditional insurers have relied on outdated procedures that involve agents and extensive paperwork, limiting their reach and hindering product acceptance. However, disruptive technologies and innovative products introduced by insurtechs like Turaco are revolutionizing the market, promising a brighter future for insurance coverage in Africa.

Turaco customers

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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

Kenya-based Insurance Platform Turaco Raises $10M In Series A Funding Round

September 16, 2022

Through its B2B2C business strategy, Kenyan insurtech company Turaco has been able to tap into a wide pool of prospective clients in its markets, offering insurance to a population that has never consumed it before. As a result, it has acquired $10 million in Series A equity capital.

AfricInvest, through its Cathay Africinvest Innovation Fund (CAIF), and Novastar Ventures are leading the fundraising round. Enza Capital, Global Partnerships, Zephyr Acorn, Operator Stack, Asi Ventures Limited, and Push Ventures all participated, bringing the total amount of capital raised by Turaco to $13.3 million.

“We want to insure a billion people in the next 25 years and that’s what we’re building towards. It’s an audacious goal in every way and I can’t even really describe how to get there, but I have a clear vision of insuring 100 million people. Getting to that next stage of growth means working with some of the largest brands in the world. We have the right mix of talent, ambition, technology and vision to get us there. But it’s a long road ahead of us for sure,” Ted Pantone, Turaco co-founder and CEO, said.

Why The Investors Invested

The insurtech business asserts that it has acquired over 500,000 consumers, 268,000 of whom are active. Since 2020, its user base has expanded 300 percent. Pantone attributes their development to their business strategy and value offer, which works for both partners and end customers, according to him.

“As the insurance penetration in Sub-Saharan Africa remains below 3%, one of the lowest rates globally, we believe Turaco has developed the tools and know-how to fill this gap and reach low-income earners with products adapted to their needs, thus being a critical part of the push to help shield the most disadvantaged from unforeseen financial burdens and shocks,” AfricInvest and co-head of CAIF Partner Yassine Oussaifi, said in a statement.

A Look At What Turaco Does

Powered by a sustainable business strategy, the firm, which now has operations in Uganda and Nigeria, has entered its expansion phase and is seeking further partnerships in order to accelerate the adoption of mass market insurance in Africa.

Ted Pantone and Peter Gross co-founded Turaco following their employment at MIC Global (Micro-Ensure), a tech-enabled embedded insurance company.

“Insuring a billion people is what I want to do for the rest of my life, and this is both socially impactful, as well as commercially scalable,” he said.

Partners of Turaco, such as PayGo firms (M-KOPA), ride-hailing platforms (SafeBoda), fintechs, and microfinance institutions, can package insurance with their main goods or services via API integration.

The insurtech collaborates closely with each partner to “create and sell its white-labeled insurance products.” Customers pay as little as $0.2 for life, asset, medical, and auto insurance.

“We get typically north of a 50% conversion rate when we sell into these partnerships, because the value proposition really makes sense. And people are very aware of the risks like having medical emergencies and needing to clear that hospital bill. Demand is not the issue. People actually really want to buy insurance if it’s designed appropriately for them from a price point value proposition, and if it’s sold in a frictionless, efficient manner. So, most of our innovation is really around the distribution model. That’s really the key we are fixing to make it really easy for people to say yes, and then pay for insurance,” said Pantone.

Below 3% insurance penetration in Africa is partly related to the sector’s delayed acceptance of innovation. To sign up new clients, many insurers rely on old procedures requiring agents and copious amounts of paperwork, which limits their consumer reach and hinders the acceptance of their products. However, a turning point is imminent as insurtechs such as the Kenyan insurtech Turaco deliver disruptive new technology and products to the market.

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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://insightsbyexpert

One Year After Raising $1.2m, Kenyan Insurtech Startup Turaco Secures $2m

November 12, 2020

In December last year, Kenya’s Turaco, a digital insurance startup announced it has successfully raised $1.2m seed investment from investors Gan Ventures, Mercy Corps Ventures and Musha Ventures. Less a year after, the startup has followed it up with yet another US$2 million seed funding to further grow and scale its operations in Sub-Saharan Africa.

Turaco chief executive officer (CEO) Ted Panton — Turaco *chief executive officer (CEO) Ted Panton*

“We are thrilled to partner with Novastar Ventures and all of our other great investors to help build Turaco to the next stage of growth. Our vision is to insure a billion people in the next 25 years. Investors like these will help propel us to that reality,” said Turaco co-founder and chief executive officer (CEO) Ted Pantone.

Here Is What You Need To Know

This round was led by Novastar Ventures, with participation from previous investors such Mercy Corps Ventures, Musha Ventures, GAN Ventures as well as Zephyr Acorn, and some angel investors who have previously invested in Turaco.
Turaco will use the funding to drive growth in its current locations of Kenya and Uganda, and facilitate expansion into a third market next year.
The financial support will also facilitate development of the next stage of Turaco’s proprietary technology and recruitment of key hires to position the business for continued growth in 2021.

Why The Investors Invested

Obviously, by breaking down the complex issues around insurance, Turaco is solving an important social problem. This is perhaps why the investors invested.

Co-founder Ted Pantone noted this in the press release on the investment last year saying that Turaco was “blessed” to be able to choose from a group of investors with different specialities.

“These range from social impact and value alignment to industry understanding and connections in Silicon Valley,’’ he said.

“In our next round of funding, we are looking for additional value-aligned investors who have the capacity to support us in our vision to insure a billion people.”

One of the lead investors Mercy Corps Ventures is notable for investing in social startups with the talent, drive and technical skills to design products and services to positively impact people in fragile places and emerging markets.

‘‘Mercy Corps Ventures (MCV) makes equity or convertible debt investments in and support these bold new ventures. We look for ventures pioneering solutions in financial services, agriculture, last-mile logistics, and youth employment. We’re an early source of capital for these ventures, which we then follow up with a significant investment of our time and expertise. That includes close consultation, technical support, and leveraging Mercy Corps’ global network of 5,000 staff across 44 countries, and the many relationships we’ve built across the private and public sector,’’ the VC noted on its website.

GAN Ventures, a VC recently launched in January 2017 is also notable for investing in startups regardless of where they are. The VC has already invested in startups across Lincoln, Nebraska; Los Angeles, California; Des Moines, Iowa; Cairo, Egypt; Wellington, New Zealand; Buenos Aires, Argentina, among others.

Turaco funding Turaco funding

A Look At What Turaco Does

Launched in 2008, Turaco was the idea of Peter Gross who during his eight years working in financial services in sub-Saharan Africa (precisely Kenya and Uganda) saw time and time again how individuals with health issues would simply avoid going to the doctor for as long as possible, growing sicker and sicker.

The Turaco idea is based around the concept of a “nano-loan” — a tiny, short-term loan of hard cash. Customers would be pre-approved for nano-loans of $10-$25, accessible when they are sick or injured and need to pay for a medical service. The money is sent to them, often in the form of mobile money, so they can immediately seek care.

The customer then pays back the loan, plus $2-$10, over a period of four weeks. While they’re paying back the loan they also receive access to telemedicine services and hospital insurance.

To date, Turaco has insured over 70,000 people and seen almost 2,000 claims paid in an average turnaround time of less than three working days, and it plans to scale this impact after securing US$2 million seed investment.

Turaco works in partnership with other businesses to deliver the packages to its customers.

“We learned how to design a product that is good for the customer without costing them an arm and a leg,” says Gross.

Turaco’s subscription model enables consumers to opt in for automated medical policy renewals which are bundled with their existing payments. The startup says it has insured more than 30 000 users in Kenya and Uganda.

In June 2019, Turaco was selected to join the Catalyst Fund‘s fintech accelerator programme along with three other Africa-focused and one Brazilian startup receiving between $50 000 and $60 000 in non-equity funding.

In 2018, Turaco received a $40 000 grant from Villgro Kenya.

Currently based both in Atlanta and Africa, Gross, based offshore is the Head of Product while his co-founder and CEO Ted Pantone is permanently based in Nairobi, Kenya.

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

Ethiopian Edible Oils Business Turaco Raises US$22m Growth capital From Proparco

June 11, 2020

Turaco, the Ethiopian edible oils company and owner of the brand name Tena Oil, has a new funding from the French development financial institution Proparco and the South Africa-based Ethos Mezzanine Partners. The business has announced a US$22 million investment from both investors.

Chief Investment Officer, and Chairman of the Board of Turaco, Saad Aouad

“We are extremely proud of how our companies have matured to become manufacturers of the leading brands in Ethiopia in their respective sectors, as well as the tremendous growth rates that have been achieved so far,” said 54 Capital PE Advisors’ Chief Investment Officer, and Chairman of the Board of Turaco, Saad Aouad.

Here Is What You Need To Know

With the new investment, Turaco will fund the expansion of its manufacturing operations, carried on by Health Care Food Manufacturers SC and ZAK Ethiopia Manufacturing & Trading Plc.
Some of the capital will also be applied to upgrading these facilities to meet IFC performance standards relating to Environmental, Health, Safety and Governance.
According to a press-release by Proparco, the deal was structured and arranged by African Alpha Investment Partners.

Why The Investors Invested

“We are very excited to invest in Turaco’s Ethiopian FMCG manufacturing business. The growth prospects for the business, and the chance to invest in this management team, alongside 54 Capital and Proparco, offers us a unique opportunity to support economic growth, development and job creation in the Ethiopian private sector,” Phillip Myburgh, Managing Partner at Ethos Mezzanine Partners said.

Being Proparco’s first mezzanine transaction in Ethiopia, Geoffrey Coombs, Senior Investment Officer at Proparco said:

“Investing in the development of emerging states such as Ethiopia is a key strategic priority for Proparco, and we are proud to support Turaco in its expansion.

“Turaco’s ambitious growth strategy will support job creation, the development of local agribusiness, import substitution and economic growth in the country,” he added.

Brad Koen, Co-founder and Director of African Alpha Investment Partners, and board member of Turaco applauded Ethos and Proparco for undertaking the transaction during a time when there is an on-going global COVID-19 pandemic.

“We are excited to see 54 Capital and its portfolio of Ethiopian companies, now receiving the support it deserves from large leading institutional investors such as Ethos Mezzanine Partners and Proparco. It will undoubtedly help to propel Turaco on to even greater heights,” said Brad.

“And we salute the management of Turaco’s operations in Ethiopia for establishing market-leading manufacturing infrastructure, business processes and systems that have delivered quality and affordable locally manufactured products to Ethiopians throughout the COVID-19 crisis,” he stated.

A Look At What Turaco Does

Turaco is a holding company managed by 54 Capital PE Advisors, which holds a portfolio of FMCG assets in Ethiopia. The business, manufactures and sells edible sunflower and soya oil under the brand name Tena, as well as soaps and detergents and personal care products, including laundry soaps and perfumed toilet soaps, under the brand names 555 and Aura.

“It is our vision to improve the lives and livelihood of the communities we serve, by providing world class products and services for current and future generations, and we look forward to delivering that vision with our new financing partners,” Chairman of the Board of Turaco, Saad Aouad said.

Turaco has embarked on a bold expansion strategy, materially increasing the capacity and effectiveness of its subsidiaries’ production facilities, as well as expanding their range of product offerings, to meet growing demand for its market-leading brands in Ethiopia.

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.

Kenyan Digital Insurance Startup Turaco Raises $1.2m Seed Investment

December 13, 2019

The degree of funding this year for Kenyan startups has been quite significant. Digital insurance startup Turaco seems to be closing off the year with a $1.2-million seed investment which it intends to use to further scale its operations across Africa.

Here Is The Deal

Although this round of funding was concluded in September 2019, Turaco founders CEO Ted Pantone and Peter Gross, announced in a statement that the investors who contributed to the seed round include Gan Ventures, Mercy Corps Ventures and Musha Ventures.
Turaco hopes to use the investment to announce it presence in new markets and further develop its ongoing pilots and partnerships with businesses and fintech companies.
Turaco is also looking at entering one or two new markets in East and West Africa next year.

Why The Investors Invested

Obviously, by breaking down the complex issues around insurance, Turaco is solving an important social problem. This is perhaps why the investors invested.

Co-founder Pantone noted this in the press release on the investment saying that Turaco was “blessed” to be able to choose from a group of investors with different specialities.

“These range from social impact and value alignment to industry understanding and connections in Silicon Valley,’’ he said.

“In our next round of funding, we are looking for additional value-aligned investors who have the capacity to support us in our vision to insure a billion people.”

One of the lead investors Mercy Corps Ventures is notable for investing in social startups with the talent, drive and technical skills to design products and services to positively impact people in fragile places and emerging markets.

‘‘Mercy Corps Ventures (MCV) makes equity or convertible debt investments in and support these bold new ventures. We look for ventures pioneering solutions in financial services, agriculture, last-mile logistics, and youth employment. We’re an early source of capital for these ventures, which we then follow up with a significant investment of our time and expertise. That includes close consultation, technical support, and leveraging Mercy Corps’ global network of 5,000 staff across 44 countries, and the many relationships we’ve built across the private and public sector,’’ the VC noted on its website.

GAN Ventures, a VC recently launched in January 2017 is also notable for investing in startups regardless of where they are. The VC has already invested in startups across Lincoln, Nebraska; Los Angeles, California; Des Moines, Iowa; Cairo, Egypt; Wellington, New Zealand; Buenos Aires, Argentina, among others.

A Look At What Turaco Does

Launched in 2008, Turaco was the idea of Peter Gross who during his eight years working in financial services in sub-Saharan Africa, saw time and time again how individuals with health issues would simply avoid going to the doctor for as long as possible, growing sicker and sicker.

The Turaco idea is based around the concept of a “nano-loan” — a tiny, short-term loan of hard cash. Customers would be pre-approved for nano-loans of $10-$25, accessible when they are sick or injured and need to pay for a medical service. The money is sent to them, often in the form of mobile money, so they can immediately seek care.

The customer then pays back the loan, plus $2-$10, over a period of four weeks. While they’re paying back the loan they also receive access to telemedicine services and hospital insurance.

Turaco works in partnership with other businesses to deliver the packages to its customers.

“We learned how to design a product that is good for the customer without costing them an arm and a leg,” says Gross.

Turaco’s subscription model enables consumers to opt in for automated medical policy renewals which are bundled with their existing payments. The startup says it has insured more than 30 000 users in Kenya and Uganda.

In June, Turaco was selected to join the Catalyst Fund‘s fintech accelerator programme along with three other Africa-focused and one Brazilian startup receiving between $50 000 and $60 000 in non-equity funding.

Last year Turaco received a $40 000 grant from Villgro Kenya.

Currently based both in Atlanta and Africa, Gross, based offshore is the Head of Product while his co-founder and CEO Ted Pantone is permanently based in Nairobi, Kenya.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world