Rwandan insurtech startup Eden Care, which offers affordable, accessible and personalised health coverage to businesses and their employees, is the only African company far confirmed as a participant in the S23 batch of the renowned Silicon Valley-based Y Combinator accelerator.
Founded in 2021, Eden Care is a licensed digital health insurance company, backed by the two largest reinsurers in Africa – Zep Re and Africa Re. The startup provides employers with one platform through which they can manage all of their employees’ health and wellness needs.
The startup raised pre-seed funding last year, and has now added to that pot after becoming the first ever Rwandan company selected for Y Combinator, which played a role in the early days of companies like Airbnb, Coinbase and Dropbox, among others.
Disrupt Africa reported last year the accelerator had increased its standard deal size to US$500,000. Until now, YC invested US$125,000 for seven per cent equity, but under its new standard deal it will now also invest an additional US$375,000 on an uncapped SAFE with “Most Favoured Nation” (MFN) terms.
“Being accepted into Y Combinator is an extraordinary validation of the hard work and dedication our team has invested in our vision and to be part of changing the narrative on startups in Africa,” said Moses Mukundi, founder and CEO of Eden Care. “We are excited to utilise this opportunity to further optimise our technology and accelerate our mission of revolutionising health insurance across Africa.”
The number of African startups taking part in Y Combinator has steeply declined over the last few batches. Y Combinator’s alumni features continental royalty such as Flutterwave, Paystack and Kobo360 (not to mention Cowrywise, MarketForce, Kudi, WaystoCap, WorkPay, Healthlane, Trella, 54gene, CredPal, NALA and Breadfast), and African participation peaked with the W22 batch, when 24 startups from the continent took part.
However, there were only seven in S22, and three in W23. Thus far, of the 91 startups revealed so far for the S23 batch, Eden Care is the only African venture.
Y Combinator occupies an ambiguous position within Africa’s startup ecosystem, but is lauded by entrepreneurs for the positive impact it has on their businesses.
