The investment, which is proposed to be made in the form of preferred shares, will be the first publicly-known funding for Pasarpolis since it raised a Series A funding round from Indonesian unicorns Gojek, Traveloka and Tokopedia in 2018.
Established in 2015, Pasarpolis started its journey as an aggregator of insurance products. It has since transformed into a provider of insurance solutions with affordable premiums by utilizing big data and algorithms and through its partnership with insurance companies.
The company sells a variety of insurance options covering health, vehicle, accident, property, travel and life.
In May last year, the startup announced plans to expand its business outside its home market, beginning with Thailand and Vietnam.
IFC says it expects the investment will help Pasarpolis expand its coverage of risks related to e-commerce, covering risks that are essential for the development of Indonesia’s digital economy and helping businesses and consumers safely and confidently transact online.
“This investment will help Pasarpolis to continue to grow its capacity to provide coverage for ride-hailing drivers and passengers, and also develop other kinds of insurance for owners and users of vehicles beyond the ride-hailing sector,” IFC said in the disclosure.
Earlier this year, Pasarpolis teamed up with Gojek to launch a feature called GoSure that embed basic third-party liability protection and coverage for drivers and passengers, and also offers additional policies for more extensive protection for drivers and their vehicles.
Having witnessed the rise of payment and P2P in the last few years in Indonesia, insurtech is anticipated to be one of the sub-sectors of fintech that would garner increasing interest in the coming years.
In Indonesia, Pasarpolis operates in the same space as startups like Qoala, while conventional insurance firms have also started to double down on digitalizing their products and services.
Southeast Asian insurtech startup Qoala last month closed its $13.5-million Series A round led by Centauri Fund, a joint venture between funds from South Korea’s Kookmin Bank and Telkom Indonesia.
In other recent deals in the same sector in the region, Singapore-based Axinan raised an undisclosed sum in a Series A+ round led by InVent, the corporate venture arm of Thai-listed Intouch Holdings.