The Jakarta Post
Qoala, an insurance technology start-up, has secured US$13.5 million in its first round of financing from major investors Sequoia India, Flourish Ventures and Mirae Asset Venture Investment.
The Series-A investment round was led by Centauri Fund, a joint venture between South Korea’s Kookmin Bank and state-owned telecommunication giant Telkom Indonesia, Qoala announced Tuesday.
Existing investors also participated, including Bank Central Asia’s Central Capital Ventura, MDI Ventures, Surge, MassMutual Ventures Southeast Asia and Seedplus.
“Through this funding, we will invest further in technology, human resources and brand in support of our strategy to give the best service to customers, platform partners and insurance companies,” Qoala cofounder Tommy Martin wrote in a press statement.
The Jakarta-based company intends to double its number of employees to 300 next year, Tommy said. After its first year of operations, Qoala handles 2 million policies per month, up from 7,000 policies in March 2019.
Indonesia’s insurance industry has struggled to boost its penetration rate as it floats around low single digits for years at around 3 percent today, yet the growing Indonesian middle class presents as a big opportunity.
“Looking at the rapid growth of the middle class, the need for insurance and financial planning will also increase. Therefore, we are certain [that,] through relevant innovation, the insurance sector in Indonesia can develop rapidly,” said Kenneth Li, managing partner of Centauri Fund.
The middle class, which accounts for half of all household spending in the country, has booked average consumption growth at 12 percent annually since 2002, according to World Bank data.
Qoala, which provides insurance coverage for tourism, fintech, retail and logistics, as well as employee healthcare, is currently cooperating with insurers providing COVID-19-related services for consumers and small and medium enterprises (SMEs) across Indonesia.
The platform has partnered with digital platforms that range from Tokopedia and Shopee to Investree and Mitra Adi Perkasa (MAP) Group. It is supported by more than 20 insurance companies, including AXA Mandiri, Adira Insurance and Great Eastern.