Qoala Announces IDR 713,3 Billion Series C Funding Led by PayPal Ventures and MassMutual Ventures

Startups insurtech Qoala announced that it has closed series C funding worth $45 million or equivalent to IDR 713,3 billion. The round was led by PayPal Ventures and MassMutual Ventures with support from MUFG Innovation Partners, Ohana Holdings, and previous investors including Flourish Ventures, Eurazeo, and AppWorks.

Previously Qoala managed to close series B funding last year with a total value of $70,5 million (in two rounds). With the additional fresh funds that have just been obtained, the range of equity funding that the company has recorded has reached $139,5 million or the equivalent of IDR 2,2 trillion.

Through the additional capital obtained, Qoala is committed to increasing the business embedded insurance (B2B2C) in Southeast Asia through accelerated technology development (application of AI in various lines), improving the experience of customers, partners and agents. Qoala also wants to explore new product variants and channels on its agent platform by exploring strategic acquisitions and cross-sector partnerships.

"Led by the unwavering dedication of our incredible team and the trust placed in us by investors, this series C funding demonstrates the market's confidence in our strategy and mission. Our mission to democratize insurance remains steadfast, and with this new cash injection, we are better prepared to drive innovation and impact lives and livelihoods," said Qoala Co-Founder & CEO Harshet Lunani.

Qoala business growth

The company stated that since 2022 Qoala has recorded gross premium growth of 2,5x and has processed 60% of total claims internally. Early business growth was largely supported by the diversification of partnership channels which had implications for the rapid increase in the number of business partners. The company's profitability metrics are also claimed to continue to experience an upward trend, surpassing GWP growth, and this shows the company's commitment to sustainable financial performance.

Throughout 2023, Qoala will successfully process 115 thousand claims and reach 45 thousand new customers. This is also supported by the variety of insurance products sold on its marketplace portal, and supported by more than 60 thousand+ marketing partners. From the start, one Qoala's important value proposition on the digital agency system that is owned. Through the innovations introduced, Qoala has succeeded in increasing insurance accessibility and the claims process for the public more efficiently.

"We have been extremely impressed with Qoala's incredible growth since our first investment in 2019. The team's consistent hard work and high performance is evident in their position as a market leader. We are proud to continue their support as they continue to redefine industry standards and drive financial inclusion in this region," said MassMutual Ventures Managing Partner Ryan Collins.

In Indonesia, Qoala faces a number of competitors, including Fuse, Igloo, PasarPolis, and Lifepal. Throughout 2022, Fuse issued more than 150 million insurance policies and recorded gross premium income of more than IDR 3 trillion. While Lifepal is just now acquired Roojai Group in early 2024.

Qoala's next plan

One of the next development focuses is to significantly improve the agent experience and operational efficiency by further increasing the use of generative AI. This investment will enable Qoala to enhance and expand the platform insurtech existing ones, ensuring staying at the forefront of technology and reducing time to market.

Additionally, Qoala is dedicated to developing tools that support its insurance partners in enhancing their capabilities in underwriting, claims processing and fraud detection, thereby strengthening its commitment to innovation and excellence in the industry.

"By positioning itself as the solution of choice for platforms serving traditional consumers and agents, Qoala provides consumers across Southeast Asia with much-needed tools to address persistent protection gaps," said PayPal Ventures Principal Alexandros Bottenbruch.

Apart from Indonesia, currently Qoala also operates in Malaysia, Vietnam and Thailand. This expansion is supported by a strategy of strategic partnerships and acquisitions. In Thailand, they operate by acquiring startups insurtech local Fairdee.

In the midst of uncertain macroeconomic conditions, in the middle of last year Qoala also reduced the number of its team to 80 people in Indonesia and Malaysia. It was stated that this step was taken to increase synergy within and across each department and business unit so that it is efficient and sustainable.