Luxembourg-headquartered climate insurtech company IBISA has raised $3m in funding, boosting its efforts to scale its solutions tailored for weather-related risks in Asia and Africa.
The funding round was led by the Acumen Resilient Agriculture Fund (ARAF) and venture capital firm Equator, specialising in energy, agriculture, and mobility. Asian Development Bank Ventures (ADBV) and existing investors, including Ankur Capital, also took part in securing the funds.
“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.”
Maria Mateo, CEO of IBISA.
The funding will allow IBISA to continue developing its coverages, which include agricultural-focused insurance products as well as typhoon insurance and loan protection for financial institutions. The insurtech has also developed a heat stress product insurance initially designed for dairy farmers, primarily in India, that is now being expanded in other countries, such as Bangladesh.
Event-based insurance for vulnerable regions
IBISA, which stands for Inclusive Blockchain Insurance using Space Assets, deals in parametric insurance. This type of coverage pays out the insurer in case of a predefined event, like a natural disaster, rather than indemnifying the actual loss incurred. The Luxembourg-headquartered company uses satellite data analytics and risk modelling to design and operate its insurance products. It targets regions in Africa and Asia where communities are most vulnerable to extreme weather events and has put an emphasis on its activities in India since establishing its presence there in 2023.
