Indonesian insurtech platform Qoala has announced raising a total of $47 million in its Series C funding round anchored by PayPal Ventures, the corporate venture arm of payments giant PayPal; and US-based insurer MassMutual.
The funding round was also backed by MUFG Innovation Partners, Ohana Holdings, and existing investors such as Flourish Ventures, Eurazeo, and AppWorks.
DealStreetAsia reported in December that Qoala had raised fresh funds from PayPal Ventures, MassMutual, and other investors via convertible notes which converted into Series C shares.
Qoala’s filings with Singapore’s Accounting and Corporate Regulatory Authority (ACRA) in December showed that PayPal is extending a loan of $15 million to Qoala while MassMutual is subscribing to notes worth $10 million.
The close of Series C funding comes about a year after Qoala closed a $7.5 million Series B+ round. It had previously raised $65 million in a Series B round led by Eurazeo in May 2022.
The latest investment brings Qoala’s total capital raised to date to over $130 million.
Qoala was founded in 2018 by Harshet Lunani, the founder and former CEO of digital investment platform Kelola; and Tommy Martin, who has previously worked at Traveloka and insurance broker PT Mitra Jasa Pratama.
It focuses on retail insurance, which includes protection for cars, bikes, homes, and health. It also distributes insurance products on digital platforms such as Shopee, Traveloka, DANA, Redbus, JD.ID, and Kredivo.
Per the announcement, Qoala will use the fresh funds to expand its embedded insurance business (B2B2C) across Southeast Asia. The company also seeks to integrate artificial intelligence across all channels, among others.
“Our mission to democratise insurance remains steadfast, and with this new infusion of funds, we are better equipped than ever to drive innovation and impact lives and livelihoods,” said Lunani.
The insurtech firm earned revenue of $7.35 million in the financial year ended December 31, 2022, per its latest financial statement filed with ACRA. Meanwhile, its net loss more than doubled to $22.3 million.
The company laid off around 80 employees in Indonesia and Malaysia in August. It said the move would help it “improve synergies within and across each of its departments and business units to lead a more efficient and sustainable business”.
The insurance market in Indonesia remains largely untapped. According to Statista, the insurance penetration rate in the archipelago stood at approximately 2.7% at the end of 2022. Insurtech startups seek to bridge the gap but face an uphill task.
