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PaddyCover

Pay-as-you-go insurance platform for underserved markets in Nigeria and Africa

Distribution & Sales Startup Seed
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Overview

PaddyCover is an embedded insurance distribution platform for insurers and digital businesses operating in Nigeria and across Africa. The company operates a B2B2C model, serving as a technology and distribution layer between established insurance carriers and end customers in low- to medium-income segments. Its platform enables partners to design, configure, and distribute bespoke insurance products through multiple channels including USSD, mobile apps, web, and agent networks.

The core product is an insurer-agnostic API that allows partner insurers and customer aggregators to configure pay-as-you-go policy structures with flexible payment schedules -- weekly or monthly installments -- rather than requiring annual upfront premiums. PaddyCover also provides an agent financing platform that lets agents front premium costs on behalf of customers and collect repayments over time, lowering the initial barrier to policy purchase. Product lines include health, home content, auto, life, motorcycle, and personal accident insurance.

Founded in 2018, PaddyCover targets the large underserved insurance market in Nigeria, where microinsurance penetration among adults is approximately 0.2%. By 2023, the company had grown to over 12,000 active policies and reported revenue growth from USD 22K in 2020 to USD 60K in 2021. The company received USD 200K in pre-seed funding from Catalyst Fund and Catapult: Inclusion Africa in January 2023, as part of a climate-resilience cohort.

Products & Services

Insurer-Agnostic API Platform

A REST API that enables partner insurers and digital businesses to design and distribute customized insurance policies at scale. Partners can configure coverage types, premium structures, and payment schedules for their specific customer base without being locked into a single insurer.

Key Features

  • Configurable pay-as-you-go premium structures (weekly or monthly)
  • Multi-channel distribution (USSD, mobile app, web, agent portals)
  • Bespoke policy design for partner-specific customer segments
  • Integration with existing insurer systems

Target Users: Insurance carriers, customer aggregators, digital platform operators

Agent Financing Platform

A platform enabling insurance agents and brokers to finance premium payments on behalf of customers. Agents front the initial premium cost and recover payments from customers in installments, removing the financial barrier of upfront payment.

Key Features

  • Agent-fronted premium financing
  • Customer installment repayment tracking
  • Integration with pay-as-you-go policy engine

Target Users: Insurance agents and brokers in Nigeria

Pay-As-You-Go Consumer Insurance Products

A range of retail insurance products distributed through partner channels and direct channels (USSD, mobile, web, agents):

Key Features

  • Health insurance (from approximately NGN 3,500/month)
  • Home content insurance (from approximately USD 0.60/month)
  • Auto / comprehensive car insurance (from approximately NGN 150/week)
  • Life insurance
  • Motorcycle insurance
  • Personal accident insurance

Target Users: Low- to medium-income consumers in Nigeria and Africa

At a Glance

Founded
2018
Headquarters
Lagos, Nigeria
Employees
11-50
Funding
Seed

Category & Focus

Category
Distribution & Sales
Subcategories
Embedded Insurance API Distribution Platform Microinsurance
Insurance Verticals
Health P&C Personal Life & Annuity Specialty/E&S
Target Customers
Carriers, Consumers, Agents/Agencies

Customers

  • Nigerian insurance carriers (unnamed underwriting partners)
  • Solar home system providers (distribution channel partners)
  • Customer aggregators and digital platforms (embedded distribution partners)

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Last updated: 2026-06-23