Agri-insurance startup IBISA has raised an undisclosed amount in its seed funding round from Ankur Capital.
Luxembourg-based IBISA was founded in 2019 by Maria Mateo Iborra, Jean-Baptiste PLEYNET, and Annette Houtekamer, It is an insurtech startup focused on providing weather based insurance to smallholder farmers in India.
Initially it focused on providing drought-based insurance coverage to farmers in Tamil Nadu, but currently it provides coverage against excess rainfall, excess wind speed and drought to farmers in Odisha, Karnataka and Telangana.
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“Farming is an integral part of both our societal and economic infrastructure. The impact that the war in Ukraine is having on food prices and food security seriously underscores the importance of global agriculture. And yet the support isn’t there. With IBISA, we sought to create technology that would help reduce costs for the active players in the insurance space. Finding a way to responsibly protect farmers in the event of extreme weather, by slashing distribution and operating costs, making it affordable to many groups in the value chain. And it’s no small challenge. But we’re already seeing results. A small evidence of our success is the fact that when the Philippines was hit by Typhoon Odette in Dec 2021, our insurance partner, CLIMBS was able to do payouts within 10 days after the typhoon hit Philippines with IBISA’s weather protection coverage in place,” said Maria Mateo Iborra, CEO & co-founder, IBISA.
Apart from India, the company has operations in New Zealand, Guatemala, Senegal, Philippines and other African countries.
“The unavailability of data has hampered the growth of the agricultural insurance industry in developing countries for decades. Legacy crop insurance involved long manual processes making them impractical for developing markets where smallholder farming is the norm, and parametric insurance has historically been unviable due to the lack of detailed climate-related datasets”, said, Ritu Verma, Partner at Ankur Capital.
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The startup is in talks with several large lenders, food processors and agritech customers across different geographies to mitigate their credit risk against default, mitigate their supply chain risks and enhance their sustainability practices in agriculture and strengthen farmer relations with smallholder farmers in India and abroad.
IBISA builds, distributes and operates Climate Insurance Solutions for agriculture in a cost-efficient, scalable and innovative way.