IBISA, an Agri-InsurTech whose mission is to provide innovative weather insurance, has raised seed money.
A report of Entrepreneur revealed that the capital was raised from Ankur Capital, an early-stage venture capital fund focused on transformative technologies in deep and climate technologies.
Founded in 2019, IBISA started operations in India to provide parametric drought insurance in Tamil Nadu.
Now the company is expanding its operations in India with operations in Odisha, Karnataka and Telangana for coverage against excessive rainfall, wind speed and drought.
IBISA builds, distributes and operates climate insurance solutions for agriculture in a profitable, scalable and innovative way. Configurable parametric weather insurance with affordable premiums and fast payouts is in a digitized and transparent platform.
According to some reports, 70% of the world’s food supply comes from smallholder farmers and more than 50% of India’s workforce works in agriculture and related sectors which contributes only 20% of India’s GDP. India.
With extreme weather events linked to climate change occurring more frequently and in more unpredictable ways, smallholder farmers are more vulnerable than ever. Although insurance solutions are available, it is often claimed that they are not adequate because they are not affordable or do not meet the needs of farmers.
Ritu Verma, Partner at Ankur Capital, said, “Unavailability of data has hampered the growth of the agricultural insurance industry in developing countries for decades. Legacy crop insurance involved lengthy manual processes, making them impractical for developing markets where small farms are the norm, and parametric insurance was never viable due to lack of sets detailed climate data.
“We are delighted to partner with IBISA to transform the scale of parametric insurance options available in countries like India with a large addressable market.”
Late last year, IBISA raised €1.5 million in a funding round led by InsurTech Gateway. Other strategic co-investors also participated in the round, including Rockstart’s AgriFood fund.
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