Nigerian insurtech startup, MyCover.ai, has raised a $1.25 million pre-seed round to support its internal operations and tech talent.
Ventures Platform led the round, with participation from Founders Factory Africa and TechStars.
Adebowale Banjo (CEO), Alexander Igwe-Ifendu (CPO), and Fred Ebho (CTO) founded MyCover.ai in 2021 to provide an open insurance API that allows businesses to embed insurance into their existing products and services.
The company says it addresses challenges the African insurance market faces, including a lack of access, insufficient coverage, high insurance costs, and poor customer experience when dealing with insurance processes.
It addresses these challenges by operating across three crucial touchpoints: distribution, underwriting and product development, and insurance claims.
It streamlines the claims process for insurance companies and end users. It also integrates with insurance companies like Hygeia, Leadway, Sovereign Trust, AIICO Insurance, and Allianz via an open insurance API and offers over 30 customised insurance products.
Other companies and innovators can use this open insurance API to integrate these insurance products into their platforms.
The startup works with insurance companies to ensure the distribution of its products through its API.
MyCover.ai claims it makes it simple for startups and companies to integrate insurance into their offerings via its API and Software Development Kit (SDK). Doing so enables seamless insurance offerings to customers and, ultimately, increases revenue.
Since its launch, MyCover.ai claims to have generated over $1 million in gross written premiums through alliances with 30 insurance companies nationwide.
What’s more, the startup plans to use the funds to strategically expand its operations into additional African markets and invest in its proprietary technology.