Digital Insurance Company, Casava Secures $4M Startup Fund to Provide Affordable Services

A digital insurance firm in Nigeria, Casava has raised a pre-seed fund of $4 million to furnish Nigerians with affordable and accessible insurance services.

Investors King reports that Casava which was launched in 2021 is Nigeria’s first 100 percent digital insurance company.

It was established with the aim to make insurance affordable and accessible for income earners with the use of technology, behavioural science, and empathy. 

Investors King gathered that Target Global led the $4 million pre-seed funding. Other participants are Entrée Capital, Oliver Jung, Monzo founder Tom Blomfield and Stash founders Ed Robinson and Brandon Krieg. African founders such as Uche Pedro (founder of BellaNaija), Babs Ogundeyi and Musty Mustapha (co-founders of Kuda), Shola Akinlade (co-founder of Paystack), Olugbenga “GB” Agboola (co-founder of Flutterwave), Honey Ogundeyi (founder of Edukoya), Opeyemi Awoyemi (co-founder of Jobberman), amongst others.

Founder and CEO of Casava, Bode Pedro stated that the company was set up to provide affordable insurance for Nigerians and other Africans.

He said, “we are happy to have raised these funds from an exciting group of investors. The new funds will support customer acquisition and growth, as well as further development of the product and the technology stack. Casava already has more than 66,000 customers, with US$16 million in insurance coverage. 

“With Casava Income Protection, subscribers can insure their income with an easy-to-use subscription that starts from as little as US$1 a month, and get paid monthly for six months if they lose their job, fall sick or become disabled. Subscribers can also add on Casava Health, which enables access to more than 1,000 doctors on telemedicine and 900 hospitals across Nigeria.” 

Dissecting the digital mode of the system, Pedro said, “consumers can subscribe to Casava’s insurance products directly via the website, mobile app or WhatsApp. We will also be working with fintech and digital partners to embed insurance products into their offerings, accessing over 500,000 financial service agents to reach customers across the country. Casava will empower these agents to offer insurance and earn commissions from their customers on a recurring basis.”  

He maintained that the insurance sector has remained untapped in Nigeria with less than one percent of its citizens insured despite its great potential.

The CEO added that Casava insurance company is set to look into the hindrances to the adoption of insurance and add value to the society. 

Commending the digital insurance initiative, Dr. Ricardo Schafer, a partner at Target Global said Casava had recognised a great opportunity to address a long-lasting challenge in Nigeria and Africa.

“We are excited to support their mission to make insurance more accessible. One of the first of their kind in the region, Casava has the potential to transform the lives and livelihood of millions of people,” he said.