IBISA, an insurtech company specializing in climate resilience, has successfully raised $3 million in a recent funding round to enhance its parametric insurance solutions for weather-related risks in Asia and Africa.
The funding round was spearheaded by The Acumen Resilient Agriculture Fund (ARAF) and Equator, with additional participation from Asian Development Bank Ventures (ADBV) and existing investors, including Ankur Capital.
Focus on Parametric Insurance
IBISA announced that the new investment will be used to improve the accessibility of parametric insurance. According to the Food and Agriculture Organization of the United Nations, extreme weather events inflict annual damages ranging from $10 billion to $15 billion on the global agriculture sector.
Utilizing satellite and actuarial technologies, IBISA’s parametric insurance products aim to provide financial resilience to regions vulnerable to climate impacts. Since establishing a local presence in India in 2023, the company has concentrated its efforts there.
IBISA offers a variety of climate-related insurance products, such as agricultural insurance, typhoon coverage, and loan protection for financial institutions. Among its notable offerings is heat stress insurance for dairy farmers in India, which is now being extended to Bangladesh.
CEO Maria Mateo on Expansion
IBISA CEO Maria Mateo stated that the new funding will support the development of additional products and further expansion into emerging markets.
“From the beginning, IBISA has operated with great agility as product innovators, efficiently bringing these products to market. This is what drives us. This is our DNA. Now, we are entering the industrialization phase of our journey. With the backing of this fundraising effort and the support of both existing and new investors, our goal is to amplify our product offerings, expand within our current markets, and explore new markets,” she said.
Leadership in the Funding Round
ARAF, a $58 million impact fund focused on building climate resilience for smallholder farmers, co-led the funding round. Sponsored by Acumen and supported by various partners, ARAF targets equity investments in agricultural enterprises that support climate adaptation.
“We’re honored to co-lead this investment round in IBISA with Equator and excited to partner with a world-class entrepreneur like Maria,” said ARAF Managing Director Tamer El-Raghy. “African farmers are among the most negatively impacted by climate change, and the need for low-cost parametric insurance products is crucial for these farmers to be able to absorb climate shocks. IBISA’s cutting-edge technology helps develop affordable insurance products for these farmers. This investment is an invaluable addition to ARAF’s portfolio, and we look forward to supporting IBISA’s regional growth.”
Equator, a venture capital firm with operations in Nairobi, Lagos, London, and Colorado, also co-led the funding round. The firm invests in technology-enabled, early-stage ventures in the energy, agriculture, and mobility sectors in Sub-Saharan Africa.
“Investing in IBISA aligns with our strategy to back innovative ventures providing critical climate adaptation products and services. IBISA’s technology and business model specifically enable it to scale access to a broad range of affordable parametric insurance products across emerging markets,” said Equator Managing Partner Nijhad Jamal.
Industry Challenges
Beyond natural disasters, the insurance industry faces potential threats from space storms, which could disrupt radio communications, power grids, spacecraft, and satellite navigation, resulting in greater losses than catastrophic events, according to a recent report.
IBISA is poised to make significant strides in the parametric insurance sector, leveraging new investments to bolster climate resilience in vulnerable regions across Asia and Africa.
