Nigerian insurtech startup Curacel, an AI-powered platform for claims processing and fraud management in Africa, has secured US$3 million in seed funding to roll out new solutions and support its expansion into North Africa.
Formed in 2017, Curacel automates the insurance claims process, allowing staff to process claims volumes quickly and efficiently, and automatically vets claims to detect fraud, waste and abuse.
Having begun life as an electronic health information management system, the startup has developed into an insurtech infrastructure company that helps insurers and partners in Africa and other emerging markets increase the reach and functionality of insurance through cloud-based tools and APIs.
A participant in the Winter 2022 cohort of Silicon Valley’s prestigious Y Combinator accelerator, Curacel last year launched a new product called Grow, to support more effective distribution of insurance to millions of Africans through partners like Barter by Flutterwave, Float, Payhippo and other leading technology companies. It also enables seamless embedding of insurance in customer user journeys.
The startup has now raised US$3 million in seed funding to roll out new technology solutions designed to power the next generation of insurance experiences in Africa. The investment will also support the company’s expansion into North Africa.
Investors in the round include Tencent, AAF Management, Elefund, Blue Point Capital Partners, Pioneer Fund, Olive Tree Capital and Y Combinator, as well as James Park (CEO of Fitbit), Olugbenga “GB” Agboola (CEO of Flutterwave), Babs Ogundeyi (CEO of Kuda) and other strategic investors. Top executives from Covergenius, Zopper and Pie Insurance will also join Curacel’s advisory board as part of the round.
With Grow, Curacel’s embedded insurance product, more than 100 banks, fintechs, logistics companies and other tech-enabled companies are empowered to increase their recurring revenues by offering digital insurance products that are seamlessly embedded into their existing products and services, driving much-needed insurance penetration and customer loyalty.
Leading insurers like AXA Mansard, Liberty Health, Old Mutual and Jubilee Heath also leverage Curacel’s market leading technology to improve the efficiency and accuracy of their claims processes. The company’s AI-powered infrastructure means claims can be submitted and processed in real-time, helping insurers to reduce their claims cycle by more than 70 per cent and process up to 10 times more claims.
Curacel has processed more than US$100 million worth of claims, working with more than 20 insurers and more than 5,000 service providers in eight countries across the continent. In 2022, Curacel grew its transaction volume by 600 per cent and increased its revenue by 500 per cent. Starting with Egypt and Morocco, the new funding will enable the company to roll out its services in North Africa and deepen its presence in other parts of the continent.
“We are bullish on the potential of the right technology in the right places to close the protection gap across Africa and emerging markets. It is an exciting time for us as we secure the capital to deliver the vision and onboard the people who have built these technologies at scale in more mature markets, and we are looking forward to delivering more technology solutions to drive up insurance inclusion,” said Henry Mascot, CEO and co-founder of Curacel.