PayPal provides $47 million in financing to Indonesian insurance startup Qoala | TechCrunch

PayPal Ventures’ latest investment in an Indonesian startup Provide personal insurance products covering a variety of risksincluding accidents, damaged phone screens and flight cancellations for more than 5 million customers.

Kula The five-year-old startup said Wednesday it had raised $47 million in a new round of funding co-led by PayPal Ventures and MassMutual Ventures. MUFG Innovation Partners, Omidyar Network, and existing backers Flourish Ventures, Eurazeo, and AppWorks also participated in this Series C funding round, bringing Qoala’s total funding since inception to more than $130 million.

Headquartered in Jakarta, Qoala is an insurtech platform that partners with top local insurance companies and e-commerce companies to provide customers with personalized and affordable products. It sells insurance coverage covering cars, motorcycles, property, personal accident, travel and health. through its website and apps as well as offline events.

Although Indonesia is the fourth most populous country in the world, its insurance penetration rate is relatively low. According to the Indonesian Financial Services Authority, Indonesia’s insurance penetration rate is less than 4%, which is lower than the global average.

There are many reasons for low penetration, including limited awareness of insurance products, low disposable income among a significant portion of the population, and lack of trust in insurance companies. The Insurance Development Institute also said that Indonesia’s insurance industry is highly fragmented and has many small companies, leading to increased competition and declining profit margins, which poses risks to the growth and penetration of the industry.

The startup also relies on a network of more than 60,000 employees, which it calls “agents” or marketers, to sell insurance, streamline the claims process through image uploads, and use machine learning to detect fraud and expand A range of services that benefit both clients and insurance companies. Get convenient, cost-effective insurance solutions.

The startup said it processed more than 115,000 claims last year and added 45,000 new users, serving a total of more than 5 million customers. Qoala also counts Peak XV as its supporter, and in addition to its home country, it also operates in the Indonesian market in Malaysia, Thailand and Vietnam.

Qoala revealed that its total written premiums have soared 2.5 times since 2022 and that the startup now handles up to 60% of claims internally, without disclosing specific figures.

Qoala co-founder and CEO Harshet Lunani said the new round of financing “demonstrates the market’s confidence in the startup’s strategy.” Impacting lives and livelihoods,” he said in a prepared statement.

Qoala plans to use the new funding to explore strategic acquisitions and partnerships, as well as promote artificial intelligence in its pipeline.

Alexandros Bottenbruch, head of PayPal Ventures, said in a statement: “What Qoala has achieved in a short period of time is commendable. By positioning itself as a consumer-facing platform and the solution of choice for traditional agents, Qoala is serving customers across Southeast Asia. consumers with much-needed tools to address persistent protection gaps.”

PayPal Ventures is no stranger to Indonesia. Support Gojek in 2020.

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