Insurtech startup MTek raises $3M in debt and equity
mTeka Kenyan insurtech and digital insurance platform has received an additional financial commitment from Finclusion Group, an Africa-focused fintech platform, totaling $3m (KSh340m) in debt and equity .
This increased collaboration aims to accelerate mTek’s entry into the Kenyan market by making continuous platform upgrades and expanding its customer base.
Ms. Bente Krogmann, CEO of mTek, noted that the investment represents a watershed moment for the company and a sign of pan-African investors’ confidence in the insurtech’s mission, business strategy and philosophy.
Ms. Krogmann noted that with this investment, mTek would be able to begin its growth in Kenya by opening 25 Finclusion Group branches where agents will be trained.
The funds will be used to help the company develop fully digital, market-ready insurance products that are both accessible and affordable for the uninsured. Over the next two years, mTek hopes to expand further into six African countries.
Finclusion Group is an African fintech platform that develops a complete neo-banking service for its customers.
The Finclusion Group is present in South Africa, Eswatini and Namibia in Southern Africa, and Kenya and Tanzania in East Africa, and offers access to earned wages, BNPL, and a direct credit offer, between other services.
Mr. Nuy said that the Group is committed to achieving financial inclusion on the African continent through new technologies and major investments that can facilitate long-term change, by identifying and responding to current demands and market futures. mTek’s platform has increased transparency in the insurance and telehealth industries, and they are excited to join in the technology that provides paperless insurance for the first time in Africa.
Nuy noted that because health financing reforms in Kenya have attracted interest from both public and private sector actors, they are adopting a long-term strategy for this investment.
The “one stop shop” invented by mTek, a ready-to-use holistic insurance technology offering, is replicable across the continent. They are excited to take the lead in this process.
Insurtech has triggered changes in the insurance industry. With the introduction of technology, the industry has made huge gains in assurance inclusion, quality improvement, experience enhancement, innovative products and other aspects in the part of the rapid expansion of online insurance.
Insurtech is rapidly gaining traction as a major driver of industrial innovation. New applications in many business processes, from pricing and underwriting to distribution and claims, have flourished in insurtech, and the industry’s innovation capabilities have grown exponentially.
This is a market that has attracted national and international investment. Investors have taken notice of mTek and the company can now expand its product advertising services to cover the uninsured.
Don’t miss the important articles of the week. Subscribe to techbuild.africa weekly digest for updates.