Online loaning companies might be beginning to feel the heat of the coronavirus pandemic in Southeast Asia, however investors’faith in digital insurance start-ups stays unflinching
in the region. Jakarta-based Qoala has raised $13.5 million in its Series A funding round, the one-year-old start-up stated Tuesday. Centauri Fund, a joint venture between funds from South Korea’s Kookmin Bank and Telkom Indonesia, led the round.
Sequoia India, Flourish Ventures, Kookmin Bank Investments, Mirae Property Endeavor Investment, Mirae Possession Sekuritas and existing financiers MassMutual Ventures Southeast Asia, MDI Ventures, SeedPlus and Bank Central Asia’s Central Capital Ventura took part in the round, which pushes the startup’s to-date raise to $15 million.
Qoala deals with leading insurance companies including AXA Mandiri, Tokio Marine, Great Eastern to use clients cover against phone screen damage, e-commerce logistics and hotel-quality checks. The startup says it provides customized products to clients and relieves the burden while making claims by enabling them to upload pictures.
The startup maintains partnership with several e-commerce companies including Grabkios, JD.ID, Shopee and Tokopedia and hotel and travel booking companies PegiPegi and RedBus.
It utilizes machine discovering to discover scams claims. It’s a win-win scenario for consumers, who can make claims easily and have more cost effective and sachet insurance coverage items to buy, and for insurance providers, who can reach more clients.
Qoala processes more than 2 million policies every month, up from 7,000 in March last year. The startup said it is dealing with insurance products to cover health and peer-to-peer classifications. The startup, which utilizes about 150 people currently, prepares to double its headcount in a year.
“As a reasonably brand-new entrant in the space we are happy to partner with leading international financiers whose remarkable idea management as well as functional experience will enable us to keep our ingenious edge. This genuinely shows the community’s belief in what Qoala is attempting to attain– humanizing insurance and making it economical and available to all,” said Harshet Lunani, creator and president of Qoala, in a statement.
Kenneth Li, managing partner at Centauri Fund, said Qoala’s multi-channel approach has the prospective to open Indonesia’s untapped insurance industry.
“Our thesis determined that Indonesia has a substantially low gross written premium (GWP) to GDP ratio in comparison to other emerging countries, coupled with the large growing middle class in requirement of more security in their monetary planning which enables tremendous potential for the insurance sector to take off in Indonesia through ingenious proposals,” he included.
According to one price quote (PDF), Southeast Asia’s digital insurance coverage market is presently valued at $2 billion and is anticipated to grow to $8 billion by 2025. Recently, Singapore-based Igloo extended its Series A funding round to add $8.2 million to it.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.