An Indonesian insurtech startup, Qoala, has announced securing $47 million in a new round co-led by PayPal Ventures and MassMutual Ventures.
Qoala co-founder and chief executive Harshet Lunani confirmed the funding in a statement on Wednesday and disclosed that the funding will help widen the startup’s market footprint.
According to information obtained by News.ng, Qoala’s total fundraising since its founding has exceeded $130 million. Omidyar Network, MUFG Innovation Partners, and Flourish Ventures participated in the Series C funding, and previous supporters included Eurazeo, AppWorks, and Flourish Ventures.
According to the Jakarta-based business, over 5 million users can purchase personal insurance products from them that cover a range of risks, such as phone screen damage, accidents, and ticket cancellations.
Harshet Lunani and Tommy Martin cofounded the startup in 2018 to partner with big companies, including e-commerce and travel platforms, to enhance customer experience through unique and innovative insurance products.
The fourth most populous country in the world, Indonesia, has a relatively low insurance penetration rate.
According to the Indonesian Financial Services Authority, the nation’s insurance penetration rate is lower than the global average at less than 4%.
This poor penetration can be attributed to several factors, including low disposable income among a significant portion of the population, a lack of knowledge about insurance products, and a lack of trust regarding insurance companies.
The Insurance Development Institute also notes the extremely fragmented insurance market in Indonesia to be home to a large number of small businesses, a factor that raises rivalry, lowers profit margins, and jeopardizes the sector’s growth and penetration.
Lunani said the new funding “demonstrates market confidence” in the startup’s strategy.
“Our mission to democratize insurance remains steadfast, and with this new infusion of funds, we are better equipped than ever to drive innovation and impact lives and livelihoods,” he said in a prepared statement.
PayPal Ventures, the corporate venture arm of global payments giant PayPal, had earlier led a $24 million Series B funding in Cologne-based fintech start-up NX Technologies.
The venture was joined by Seaya Ventures, Walter Ventures and existing investor Motive Ventures in the funding round.