In February of last year, Lami Technologies, a Kenyan insurtech, announced its intention to acquire Bluewave, another startup in the insurance sector, with the aim of expanding its product range and entering new African markets. However, recent revelations indicate that the deal ultimately fell through several months later.
According to exclusive information obtained by TechCrunch, when Lami publicly disclosed the acquisition, it was operating under a two-year “strategic partnership agreement.” Adelaide Odhiambo, the founder of Bluewave, clarified that the groundwork for an acquisition had been laid, contingent on the success of Lami’s fundraising campaign, which gained momentum around the same time. Lami subsequently secured a $3.7 million seed extension led by Harlem Capital.
Odhiambo, now serving as the head of partnerships at Lami, disclosed that the terms of the deal, including the acquisition cost, underwent changes, leading her to withdraw from the agreement in August of the same year. During this period, Bluewave had licensed its technology to Lami and had onboarded partners and employees as per the terms of the initial agreement.
While Lami chose not to comment on the matter, Odhiambo explained that Bluewave had entered the negotiations with a genuine intent to finalize the deal. Unfortunately, disagreements on commercial terms prevented an agreement on the acquisition. Nevertheless, the strategic partnership agreement, which Odhiambo mentions is now reaching its conclusion, was retained.
Lami, founded in 2018 by Jihan Abass (CEO) and joined by Roy Perlot (CFO) in 2020, operates an end-to-end digital insurance platform with an API that enables businesses across various sectors to create customized insurance solutions. On the other hand, Bluewave, established in 2016, developed an online platform allowing clients to access micro-insurance products through diverse channels such as USSD, SMS, WhatsApp chatbots, and web applications.
At the time of the proposed acquisition, Abass expressed plans for Lami to integrate with Bluewave’s platform, enhancing its B2B2C offerings. The collaboration aimed to leverage Bluewave’s reach for scaling into new markets, including Malawi and the Democratic Republic of Congo.
Odhiambo confirmed that the two-year agreement with Lami is set to conclude in January 2024. When asked why she allowed the agreement to run its course, Odhiambo explained that she had initiated valuable partnerships and did not want to disrupt those relationships. Bluewave is now preparing to relaunch, having signed partnerships with aggregators, including Mobile Network Operators and banks, to distribute micro-insurance products in various countries within the East and Southern Africa regions.
