mTek Secures $3M in Funding to Provide Seamless Health Insurance Cover for Kenyans
mTek, a Kenyan insurtech startup that offers paperless insurance through its platform, has secured a $3 million funding round from Finclusion Group. This follows in the wake of a $1.50 million investment.
The insurtech startup has had sustained and attractive growth since its start in 2020, tripling its customer base and gross written premium every quarter with its 100% paperless insurance.
mTek has collaborated with over 35 Kenyan underwriters to deliver a better and more transparent experience for its clients while purchasing and renewing insurance policies.
The funding is in loans and equity funds, which will accelerate mTek’s growth and expansion in the Kenyan market.
Bente Krogmann, Chief Executive Officer of mTek, describes the investment as a watershed moment for the company, demonstrating Pan-African investors’ belief in the insurtech’s mission, business model, and philosophy.
“With this funding, we will be able to launch our Kenyan growth through 25 Finclusion Group branches where we will train agents.” In addition, the financing will assist us in developing completely digital, market-ready insurance options that are both accessible and cheap to the uninsured. “We intend to grow into six African countries over the next two years,” he said.
Timothy Nuy, Chief Executive Officer of Finclusion Group, commented on the round, stating that mTek’s ability to offer paperless insurance addressed a critical market pain point while noting the startup’s continued growth and customer value-addition aligns perfectly with the fintech platform’s vision and expansion model.
“As a Group, we are dedicated to fostering financial inclusion on the African continent through new technology and large investments that can create long-term change, identifying and addressing current and future market demands.” “mTek’s platform has enabled increased transparency in both the insurance and telehealth industries, and we are thrilled to work with such technology that enables paperless insurance in Africa for the first time,” Nuy said.
“As health financing reforms in Kenya have peaked stakeholder interests from 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 a replicable nation on the nation, the continent over. We look forward to playing a lead role in that process,” he added.
According to a 2019 survey commissioned by the People’s Health Movement Kenya (PHM-Kenya), up to 51% of Kenyans lack health insurance. As part of mTek’s goal of reaching one million customers through its innovative insurance offering in the next two years, which would help narrow the insurance gap in the East African country, the insurtech firm has an audacious plan to achieve one million consumers through its revolutionary insurance offering by 2024.