Karri, a South African fintech company that provides digital payment infrastructure for schools, is expanding beyond transaction services with the launch of an education insurance product aimed at protecting school fee payments for children until the age of 18.
Founded in 2017, Karri began with a pilot involving four schools in the Western Cape and has since expanded across thousands of schools throughout Africa. The platform enables schools to collect payments for activities such as lunches, trips and other expenses through a mobile application that manages payment collection, reconciliation and reminders.
The move into insurance reflects an effort to address a problem tied directly to education affordability and payment continuity. According to Karri CEO Doug Hoernle, the idea emerged from personal calculations around long term education costs.
“It was unnerving. That’s manageable while I’m here and earning. But after two close friends of ours, both parents, died in a freak accident last year, I couldn’t ignore a question I’d been avoiding: if I were gone tomorrow, my kids would have a roof over their heads and grandparents who love them. But their education? That’s a different story,” he said.
Karri said existing solutions did not align with how families manage education expenses today, leading the company to develop a dedicated product for school fee continuity.
“What we found was a category full of life policies that take months to pay out, funds tied up in estates while school fees go unpaid, and products designed for a world that no longer exists. Nothing built for how modern families actually live. So we built it,” Hoernle said.
The new offering, called Karri Cover, is underwritten by Guardrisk, a South African insurance provider. According to the company, funds are placed into a children’s trust managed by professional trustees and distributed directly to schools from the beginning of the claim process.
Karri said the product also includes a conversion mechanism for customers who do not claim during the policy period.
“And if you don’t claim, it converts into life cover for your family, plus a lump sum for your child at 18,” said Hoernle. “Last week, I was proud to be the first customer. Today, I’d like to share this with you. If you have children in school or heading there soon, this was built for you.”
The launch represents a broader shift among fintech companies extending beyond payments infrastructure and into adjacent financial services built around existing customer ecosystems.
