Indonesia-based insurance technology company PasarPolis has closed a $54 million Series B funding round backed by financial services investors LeapFrog Investments and SBI Investment, VC firms Alpha JWC and Intudo Ventures, as well as the Chinese consumer electronics giant Xiaomi.
The company’s Series A investor Go-Ventures, the VC arm of the Indonesian ride-hailing company Gojek, also participated in the round, PasarPolis said in a statement on Wednesday. The oversubscribed round marks the largest Series B funding for an insurtech firm in the Southeast Asian region, the statement added.
Established in 2015, PasarPolis started its journey as an aggregator of insurance products. It has since transformed into a provider of affordable insurance solutions, by utilising big data and algorithms and partnering with insurance companies. The company sells a variety of insurance products covering health, vehicle, accident, property, travel, and life.
In May last year, the startup announced plans to expand to Thailand and Vietnam.
Since its Series A financing in 2018, PasarPolis claims to have seen its monthly policies issued grow more than 80 times, and it is now working with four times as many partners as before.
In 2019, PasarPolis issued more than 650 million policies to first-time consumers, ride-hailing drivers, delivery couriers, and online SME merchants who previously had limited access to insurance policies. PasarPolis’ partnership with over 30 premier insurance companies in Southeast Asia ensures it can develop tailor-made products for different types of consumers.
With the new funding, PasarPolis will be able to advance its AI technology, leveraging big data to build tailor-made insurance products for the digital ecosystem. It also plans to penetrate deeper in the countries it operates in by expanding its fast-growing agency business that already has 10,000 agent partners in Indonesia.
“We believe that by working together with these globally-renowned investors, we will be able to accelerate the penetration of insurance in the region by further expanding access to fast, inclusive, and affordable insurance plans,” said PasarPolis founder and CEO Cleosent Randing in the statement.
LeapFrog Investments will accelerate PasarPolis’ commitment to make insurance widely available for emerging consumers. Meanwhile, Xiaomi shares PasarPolis’ vision to create a more holistic and easily accessible insurance through mobile-first insurance technology, according to the statement.
“There is huge potential for positive social impact. This is thanks to a seamless experience, particularly enjoyable among first-time buyers of insurance who use the digital ecosystem, digital payments, and operate mobile-only businesses. As part of our investment, LeapFrog Investments will focus on helping PasarPolis improve its consumer insights and product innovation capabilities, and expansion in other markets,” said Fernanda Lima, partner, LeapFrog Investments.
PasarPolis competes with startups like Qoala, which 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 another deal in the sector, Singapore-based Axinan raised an undisclosed Series A+ round led by InVent, the corporate venture arm of Thai-listed Intouch Holdings.
