Online credit companies may feel the heat of the coronavirus pandemic in Southeast Asia, but investor confidence in digital insurance startups remains steadfast in the region.
Jakarta-based company Qoala raised $ 13.5 million in its Series A financing round, the one-year startup said on Tuesday. The Centauri Fund, a joint venture between funds from South Korean Kookmin Bank and Telkom Indonesia, led the round.
Sequoia India, Flourish Ventures, Kookmin Bank Investments, Mirae Asset Venture Investment, Mirae Asset Sekuritas and existing investors MassMutual Ventures Southeast Asia, MDI Ventures, SeedPlus and Bank Central Asia’s Central Capital Ventura took part in the round, which increases the startup’s previous increase to $ 16.5 million.
Qoala works with leading insurers such as AXA Mandiri, Tokyo Marine, and Great Eastern to provide customers with protection against damage to phone displays, e-commerce logistics, and hotel quality checks. The startup offers its customers personalized products and relieves the customers by allowing them to upload pictures.
The startup maintains a partnership with several e-commerce companies, including Grabkios, JD.ID, Shopee and Tokopedia as well as the hotel and travel booking companies PegiPegi and RedBus.
It uses machine learning to identify cases of fraud. This is a win-win scenario for customers who can easily claim and buy cheaper insurance products and sachet insurance, and for insurers who can reach more customers.
Qoala processes more than 2 million policies every month, compared to 7,000 in March last year. The startup said it was working on insurance products to cover the health and peer-to-peer categories. The startup, which currently has around 150 employees, plans to double its number of employees in one year.
“As a relatively new entrant, we look forward to working with leading global investors whose tremendous thought leadership and operational experience enable us to maintain our innovative edge. This really shows the ecosystem’s belief in what Qoala wants to achieve – humanizing insurance and making it accessible and affordable for everyone, ”said Harshet Lunani, founder and CEO of Qoala, in a statement.
Kenneth Li, managing partner of the Centauri Fund, said that Qoala’s multi-channel approach has the potential to open up Indonesia’s undeveloped insurance industry.
“Our thesis showed that Indonesia has a significantly low gross written premium (GWP) to GDP ratio compared to other emerging markets, along with the large growing middle class that needs more security in their financial planning, which has immense potential for the insurance sector in To start Indonesia with innovative proposals, ”he added.
According to one estimate (PDF), the digital insurance market in Southeast Asia is currently estimated at $ 2 billion and is expected to grow to $ 8 billion by 2025. Last week, Singapore-based Igloo expanded its Series A financing round by $ 8.2 million.