PolicyStreet, a Southeast Asian digital insurance platform, has raised $6 million in a Series A round led by Altara Ventures, Auspac, and Gobi Partners, a company executive confirmed to DealStreetAsia.
DealStreetAsia had reported last week, based on ACRA filings accessed by DATA VANTAGE, that PolicyStreet had closed a fresh investment round.
With the fresh funds, Malaysia-based PolicyStreet hopes to expand into new markets in Southeast Asia, address protection gaps, and provide more creative insurance products.
The company recently secured an in-principle approval for a General Insurance and Reinsurance licence from the Malaysian Labuan Financial Services Authority. The permit will allow PolicyStreet to create and underwrite insurance products.
Founded in 2017 by former insurance and finance professionals Yen Ming Lee, Wilson Beh, and Winnie Chua PolicyStreet says it advances inclusive insurance in Southeast Asia.
The company aims to simplify the insurance buying and policy management experience through its digital platform. It is an approved Financial Adviser and Islamic Financial Adviser from Bank Negara Malaysia. It currently works directly with 40 life and general insurance and takaful (Islamic insurance) providers in Malaysia offering various insurance products and services.
The latest funding follows a series of strategic partnerships that PolicyStreet has recently forged. In the auto insurance segment, the company is working with regional digital platforms such as AirAsia Money and Carro (through its subsidiary myTukar) in Malaysia. It has also partnered with FoodPanda in providing coverage to its delivery partners.
“We are excited to have the capability to introduce new sachet-based and on-demand insurance products with our new licence to power up the insurtech ecosystem, while continuing to provide value to all our existing customers in Southeast Asia,” said PolicyStreet CEO and co-founder Yen Ming Lee.
Dave Ng, General Partner at Altara Ventures, concurred, “We believe in the potential of embedded digital insurance platforms to flip the existing model, and put customers in the centre. We have a strong conviction in the PolicyStreet team to bring innovation and advancement in digital insurtech to our region.”
Altara Ventures is a venture capital firm focused on early-stage tech investments. The firm is led by general partners with extensive experience in founding, operating and investing in technology startups in Southeast Asia and globally.
PolicyStreet last raised $1.8 million in a Series A funding round in June last year, led by returning investor KK Fund and joined by Spiral Ventures. The startup also secured funding through the equity crowdfunding platform PitchIn as part of the round.
Fintech, which includes insurtech, was the hottest sector for investments in Southeast Asia by deal volume in Q2 2021, according to a recent DATA VANTAGE report. There were 61 PE-VC deals in the fintech space in the three-month period that cumulatively raised $1.03 billion. Of this, two were insurtech deals that together raised over $180 million.
Singapore-headquartered insurtech firm Bolttech was the largest fundraiser among fintech firms in Q2 2021, raising $180 million in a round that valued it at over $1 billion. The funding was led by the private investment firm Activant Capital Group.