In Southeast Asia, insurtech firm PasarPolis reported significant revenue growth in fiscal year 2023 while AirAsia’s parent company Capital A announced a partnership with Ant International.
PasarPolis records significant growth
Indonesia-headquartered insurtech firm PasarPolis has reported a 2x revenue increase since its last funding round until 2023 and a positive gross margin since its inception in 2015. The company raised $12 million in a bridge funding round in December 2022 from various investors including UK-based equity investor Leapfrog Investment and Indonesia-focused Intudo Ventures.
The fiscal year saw a 250% growth in Gross Written Premium (GWP), surpassing 2 billion policies issued.
“Our primary aim extends beyond merely boosting revenue; we’re focused on enhancing the economics across all our business lines. Over the next four years, we anticipate revenue growth at a compound annual growth rate (CAGR) of 50%. Additionally, we plan to fully underwrite all our products within this period, to significantly enhance our EBITDA margin,” said Cleosent Randing, founder of PasarPolis in a statement.
Another key driver for the business is strengthening the Managing General Agent (MGA) model, through which the firm will play a pivotal role in offering additional products to customers and providing value to partners like Shopee, GoTo, and Home Credit, Randing added.
In 2023, PasarPolis witnessed triple-digit percentage growth in agency revenue and insurance product sales through its underwriting partner each month. Additionally, the company has expanded into Southeast Asian markets like Vietnam and Thailand.
PasarPolis has issued over 1 billion policies to date and has raised over $59 million as the first insurtech company backed by three Indonesian unicorns, including Gojek, Tokopedia, and Traveloka.
Ant International, Capital A team up
Ant International and Capital A Berhad, the parent company of AirAsia, have joined forces to explore integrating local payment methods and offering payment orchestration services on Capital A’s platforms. They also aim to collaborate on digital marketing and sponsorship initiatives to boost business expansion.
This partnership encompasses collaboration between Ant International’s Alipay+ cross-border payment solutions, marketing technologies, and digitalization tools, along with payment orchestration services, and various business segments under Capital A, including AirAsia, the travel platform AirAsia MOVE, and the financial application BigPay.
AirAsia MOVE and BigPay are partnering with Ant International to integrate Alipay+ e-wallets into their payment systems, potentially incorporating various wallet tech solutions and developing mini-programs within the Alipay+ ecosystem.
Furthermore, BigPay will join Alipay+ as a partner wallet, enabling its 1.5 million users to make seamless international payments.
