IBISA, the global climate insurtech, has successfully closed a $3 million funding round, with the proceeds set to go towards scaling its parametric insurance solutions for weather-related risks in Asia and Africa.
The round was led by The Acumen Resilient Agriculture Fund (ARAF) and Equator, alongside the Asian Development Bank Ventures (ADBV) and existing investors including Ankur Capital.
It has been revealed that this strategic investment is intended to enhance IBISA’s capacity to deliver accessible parametric insurance products.
According to estimates from the Food and Agriculture Organisation of the United Nations, global agricultural losses due to extreme weather events range between $10 billion – $15 billion annually.
In response to this, IBISA is aiming to address these challenges by offering simple and efficient parametric insurance products to help those affected by the climate crisis.
By leveraging satellite and actuarial technologies, the organisation designs and operates parametric insurance products that promote financial resilience in regions where communities are the most vulnerable to the impacts of extreme weather events.
The company has particularly focused on India, since establishing a local presence there in 2023.
Currently, IBISA offers a wide range of climate coverages tailored to meet the needs of multiple stakeholders worldwide. These include agricultural-focused insurance products, as well as typhoon insurance, and loan protection for financial institutions.
As well as this, IBISA has also developed a heat stress product insurance initially designed for dairy farmers, primarily in India, which is now being expanded into other countries, such as Bangladesh.
This vast amount of funding will enable IBISA to build more products and expand further into emerging markets.
Maria Mateo, CEO of IBISA, commented: “Since the beginning at IBISA, we have functioned with great agility as product innovators and bringing these products to market efficiently. This is what drives us. This is our DNA. Now, we are entering the industrialisation 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.”
Tamer El-Raghy, Managing Director of ARAF, said: “We’re honored to co-lead this investment round in IBISA with Equator and excited to partner with a world-class entrepreneur like Maria. African farmers are among the most negatively impacted by climate change and the need for low-cost parametric insurance products is a must-to-have for those farmers to be able to absorb a climate shock and IBISA’s cutting-edge technology helps developing low-cost insurance products for those farmers. This investment is an invaluable addition to ARAF’s portfolio and we look forward to supporting IBISA’s regional growth.”
Nijhad Jamal, Managing Partner of Equator, added: “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.”
Thitirat Sittakaradej of ADB Ventures commented: “IBISA’s cutting-edge approach leverages satellite data analytics and advanced risk modeling to make parametric insurance accessible and affordable for climate-vulnerable communities. In Asia and the Pacific, where increasingly frequent climate events often go uninsured, there is a growing need for platforms like IBISA that deliver fit-for-purpose solutions designed to seamlessly integrate with distribution channels. We are excited to support IBISA in its mission to advance climate risk insurance, a crucial way of fostering meaningful climate resilience in the region.”
Ritu Verma, Managing Partner at Ankur Capital, said: “It’s been an exciting journey working closely with IBISA over the last two years, as they leveraged their deep technical expertise in parametric insurance to scale their offerings and launch innovative new products to insure vulnerable communities and small businesses against adverse climate events. We look forward to continuing our support to IBISA’s vision of transforming climate insurance across Asia, Africa and the Pacific.”
