Luxembourg-based start-up IBISA has raised seed capital in an undisclosed amount from Ankur Capital, an India-based early-stage venture capital fund focused on transformative technologies in deep and climate technologies.
With these new funds, the start-up now plans to expand its operations across the country with operations in Odisha, Karnataka, Telangana for coverage against excessive rainfall, excessive wind speed and drought.
The agri-insurtech startup claims to be on a mission to empower players in the agriculture value chain with innovative weather insurance solutions.
IBISA was founded in 2019 and started operating in India with DHAN Foundation to provide parametric drought insurance in Tamil Nadu.
Speaking on the investment, 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 time-consuming manual processes, making it impractical for developing markets where small-scale farming is the norm, and parametric insurance has historically been unviable due to lack of detailed climate datasets. 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.
According to 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 climate change occurring on a large scale, most of these smallholder farmers are vulnerable to unforeseen climatic conditions that damage crops.
IBISA pointed out that there are no insurance solutions to address these issues, but there is a huge gap between the cost of insurance and the willingness to pay premiums and the suitability of insurance products. existing insurance and farmers’ needs.
Verma added, “Agriculture is an integral part of our societal and economic infrastructure. The impact of the war in Ukraine on food prices and food security seriously highlights the importance of global agriculture. And yet, the support is not there.
“With IBISA, we sought to create technology that would help reduce costs for those active in the insurance business. Find a way to responsibly protect farmers in the event of extreme weather conditions, by significantly reducing distribution and operating costs, which makes it affordable for many groups in the value chain.And that is no small challenge.But we are already seeing results.