Oko co-founder Lokhandwalla departs as startup hit by USAID cuts secures new funding

By Henry Gale

July 10 - (The Insurer) - Climate insurance startup Oko has received funding to continue operations after its projects were hit by cuts at the U.S. Agency for International Development, its departing co-founder Shehzad Lokhandwalla said in a LinkedIn post on Thursday.

Oko, which provides parametric drought and rainfall insurance policies in several African countries in partnership with insurers including Allianz, told The Insurer in February that it was seeking investment and considering a sale after its USAID funding was frozen.

However, co-founder and CTO Lokhandwalla said on Thursday: "Oko despite the difficulties with the recent USAID funding cut is still continuing with the help of new investments and grants and is gaining some traction thanks to the resilience of the team.

"In an effort to keep resources lean, this resignation was the least I could offer for the survivability of the company."

Lokhandwalla started Oko in 2018 alongside co-founder and CEO Simon Schwall. Schwall said in February the company had insured more than 31,000 unique farmers and paid $329,000 in indemnities.

Oko was among the companies supported by USAID's Climate Finance for Development Accelerator. The initiative awarded funds to private sector enterprises to develop and scale new solutions for climate adaptation that could become self-sustaining in the future.

Oko was working on three USAID-funded projects before U.S. President Donald Trump paused most foreign aid spending in a January 20 executive order pending a review. The U.S. administration said in March it had cancelled more than 80% of all USAID programs.

In a statement to The Insurer in February, a state department spokesperson said aid programmes that serve U.S. interests would continue, but those not aligned with the country's national interests would not.