WorldCover Raises $6 million Fund to Provide Insurance for Smallholder Farmers

G-Core Labs

WorldCover has raised a sum of $6 million Series A fund to help support smallholder farmers in emerging countries in Africa. The company reduces the risk of farming for smallholder farmers with the use of satellite imagery, on-ground sensors, mobile phones and data analytics to provide crop insurance protection.


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WorldCover is a for-profit organization that sells affordable crop insurance to farmers in developing worlds and is headquartered in New York. They use data analytics metrics to assess the level of damage and if approved, sends an insurance payment via mobile money. The company have served over 30,000 farmers across Uganda, Ghana, and Kenya. They currently offer insurance for rainfall risks and looks to include tropical storms and other adverse conditions in the insurance program. The crop insurance program provides access to credit facilities for farmers and family members.

Farmer creates an account on the USSD mobile app, inputs region, crop type and determines how much insurance they intend to purchase. Kenyan farmers make payments using M-PESA, while Ghanaians make use of the MTN Mobile money. In case of adverse weather conditions, the farmers can receive between five times to fifteen times the premium they paid by filing a claim on the mobile app. The insurance policies are funded by external investors through a marketplace, adding diversified returns and social impact to farmer’s portfolio.

They intend to branch out to India, Mexico, Brazil and Indonesia. They will use the funds to update the app to include advice to smallholder farmers in addition to the insurance offering.

 

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