Cheltenham-headquartered MicroEnsure has raised $10.4m (£6.2m) from its existing investors, as well as securing new funding from Sanlam Emerging Markets and AXA.
The business is a provider of micro-insurance, a popular way to attract low-income clients as it enables them to buy insurance products easily and in a cost-effective manner.
Such plans offer protection to individuals who have little savings and are tailored specifically for lower valued assets and compensation for illness, injury or death.
MicroEnsure said it has experienced an 88 per cent surge in the number of clients served in the past five months and now covers 7.6 million people across Africa and Asia. It hopes to reach 12.7 million clients by the end of 2014.
Richard Leftley, the company's chief executive, said: "MicroEnsure is delighted to have Sanlam Emerging Markets and AXA invest in the group and join Telenor, IFC, Omidyar Network and Opportunity as strategic investors.
"Sanlam and AXA's underwriting capacity and skills will be critical additions to our existing investors as we continue to expand rapidly and reach millions of low and middle-income families in new territories."
In parallel with this investment, the Telenor Group has taken equity in the MicroEnsure Group through a conversion of debt and by merging its 51 per cent shareholding in the MicroEnsure Asia joint venture with MicroEnsure Holdings Ltd.
Heinie Werth, chief executive of Sanlam Emerging Markets at Sanlam, said: "Our partnership with MicroEnsure will complement us well on the high volume, low premium micro insurance side for both life and non-life products where we will be the preferred insurance underwriter.
"In addition, MicroEnsure overlaps our footprint across Africa and India with future opportunities in Malaysia. We regard the company as the ideal partner through which to extend our micro-insurance offering."
Laurent Clamagirand, chief investment officer at AXA, added the firm was happy to take part in the rapid expansion of MicroEnsure.
"Usually investors either maximise risk-adjusted returns or donate to maximise social impact. Our impact investment policy is designed to balance both outcomes. Our investment in MicroEnsure perfectly illustrates this commitment," he said.
Legal advice was provided by Dorsey & Whitney (Europe) and financial advice was provided by James Cowper Corporate Finance.
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Source Newsco Insider
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