Insurtech startup Qoala bags $13.5 million series A funding-the amount said to be the largest raised among Indonesian insurtech players to date.
The round was led by Centauri Fund - a joint venture between South Korea’s Kookmin Bank and Telkom Indonesia. Participating in the round are new investors including Sequoia India, Flourish Ventures, Kookmin Bank Investments, Mirae Asset Venture Investment and Mirae Asset Sekuritas, as well as existing investors, namely BCA’s Central Capital Ventura, MDI Ventures, Surge, MassMutual Ventures Southeast Asia, and SeedPlus.
The fresh injection will be allocated to invest further in technology, human capital, and brand, to allow better services towards Qoala’s customers, platform partners, and insurance companies. Qoala is also working with insurance companies to provide services for customers and SMEs across Indonesia infected by COVID-19.
Qoala aims to revolutionize insurance and make insurance claims simple. The startup provides customers with seamless photo-based claiming process assisted by machine learning, and reduces insurers’ costs and risk using digital fraud detection. So far, its services have been expanded to five core industries, namely tourism, fintech, retail, logistics, and employee healthcare.
It collaborates with more than 20 leading insurance companies, including AXA Mandiri, Tokio Marine, Great Eastern, ACA, Adira, and BRI Life, in developing new insurance products such as flight delay, hotel quality-checks, e-commerce logistics, phone screen damage, and so on, and sells them to end customers through a wide network of ecosystem partners.
Qoala partners with ecommerce brands such as GrabKios, JD.ID, Shopee, and Tokopedia; travel booking platforms PegiPegi and RedBus; and retail company MAP Group.
The Jakarta-based company was founded by Harshet Lunani and Tommy Martin in 2019. It has grown from processing 7,000 policies per month in March 2019 to more than 2 million policies per month today. Seeing the company’s rapid growth, Qoala plans to double its staff to 300 next year to maximize services.
Last May 2019 it had previously secured a $1.5 million seed funding led by accelerator program Surge of Sequoia Capital India.
To note, insurance penetration rate in Indonesia hit less than 2% of about 265 million population. Rapid growth of mobile users and middle-income class provide a promising opportunity for insurtech in Indonesia.