Qoala Laid Off 80 Employees in Indonesia and Malaysia
Nevertheless, Qoala emphasized that its financial position is still monitored to be strong, and the contribution margin at the group level is still positive
Startups insurtech Qoala announced business efficiency which resulted in the termination of employment (PHK) of 80 employees in Indonesia and Malaysia. This was conveyed by the company through an official statement on July 31, 2023.
In the official statement, it was written that, "This step was taken to increase synergies within and across every department and business unit to lead a more efficient and sustainable business going forward. This decision was further motivated by a two-year comprehensive review of our organizational structure, which identify areas of redundancy and highlight the need for strategic adjustments."
Qoala also disclosed several initiatives to provide financial and professional support to ease this transition, such as appropriate payments and severance pay, additional compensation, extended insurance, repatriation support, letters of recommendation, and additional disbursement of leave for pregnant employees.
Regarding business efficiency, Qoala also emphasized that its current financial position is still strong, and the contribution margin at the group level is still positive. This business still provides runway enough to continue growing while significantly increasing the company's unit economy.
Last March, Qoala just completed an addition series B funding more than IDR 112 billion. When totaled with series B funding in May 2022 yesterday of $65 million, Qoala's total revenue for this round was $72,4 million (over IDR 1,09 trillion).
Currently, Qoala is committed to its business units and market presence in its operational areas. "By affirming our aim to improve the quality of life through affordable and accessible insurance, we are doubling down on our efforts to make a positive impact on the lives of our customers," he concluded.
Insurtech in Indonesia
In sector insurtech, This difficult time is not only felt by Qoala. Not long ago, one of the agency business players insurtech, Futuready, announced the closure of its operational business in Indonesia. Founded in 2016, Futuready offers brokerage services that help customers determine insurance products in a transparent manner.
According to data from the Financial Services Authority (OJK), literacy finance for sector perinsurancean in Indonesia has increased from 15,8% of 2016 to 19,40% in 2019. Furthermore, iinclusion sector finance perinsurancean shows a lower increase, ie by 1,05% of 12,1% of 2016 to 13,15% of 2019.
Quoted from the OJK website, the development of insurtech in Indonesia is said to be still not too high when compared to fintech, especially online lending platforms. According to OJK data as of March 2023, there are only two companies listed in the IKD insurtech cluster, including Qoala and YukTakaful.
Currently, there are many types of insurtech businesses that are developing from insurance management to processing, sales, data management and more. In Indonesia, there are several startups insurtech new ones that have started operating, such as Bang Jamin. Founded in 2022, the company managed to secure funding from Northstar and BRI Ventures.
Additionally, startups insurtech others such as Rey Assurance also announced new funding worth more than IDR 63 billion led by the Trans-Pacific Technology Fund. The company also added new protection products, namely ReyCare, ReyCard, and ReyFit to complement the health protection card that was launched earlier, including outpatient and inpatient benefits.
Through the various innovations presented in the insurtech sector, it is hoped that simpler insurance product systems and operations will be created so that they can be more affordable to the wider community, especially the lower middle class.