Indonesian insurtech startup Qoala snags $65m Series B funding led by Eurazeo

Qoala CEO Harshet Lunani (left) and COO Tommy Martin.

Indonesia-based insurtech startup Qoala has snagged $65 million in a Series B funding round led by European investment firm Eurazeo with participation from existing investors, including Sequoia Capital India, Flourish Ventures, KB Investment, MassMutual Ventures, MDI Ventures and SeedPlus.

New investors, such as BRI Ventures, Daiwa PI Partners, Indogen Capital, Mandiri Capital Indonesia and Salt Ventures, also participated in the round.

The company had raised $13.5 million from Centaury Fundclaims in its Series A financing round in April 2020.

Qoala will use the fresh investment to boost growth in its operating markets as well as to enhance its tech and product capabilities. The startup will also add 250 team members this year, focusing on establishing an engineering and product management hub in Gurugram, India. Moreover, it plans to grant employees with equity compensation and give them the right to acquire shares in the company.

“Qoala stands out amongst the insurtech companies due to its diverse team, which has been able to deliver rapid growth with promising unit economics despite the pandemic,” said Tara Reeves, managing director at Eurazeo.

Founded in 2018, Qoala focuses on retail insurance, which includes protection for cars, bikes, home and health. It also distributes insurance products on digital platforms such as Shopee, Traveloka, Dana, Redbus, JD.ID, and Kredivo.

Last year, Qoala had expanded its business to Thailand and Malaysia. “Our business in Thailand has also already grown three times since we joined forces with FairDee [Qoala acquired Thai insurtech firm FairDee for an undisclosed sum] in February 2021, which gives us confidence in our expansion capability,” said Qoala co-founder and COO Tommy Martin.

Insurance technology, or insurtech, comprises various digital tools and platforms, including aggregators and marketplaces that provide access to insurance products for consumers. Insurance penetration in Indonesia is currently abysmally low at 2%, which represents an untapped opportunity for digital insurance providers like Qoala to thrive.

Besides Qoala, other significant players in this space include PasarPolis, Fuse, LifePal and Igloo. The sector also saw several major deals recently, such as Fuse’s $25-million funding in December 2021 and Lifepal’s $9-million round last August. More recently, Shopee’s parent company Sea Group has been reported to be acquiring insurance company Asuransi Mega Pratama.

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