Digital Takaful Innovator Ouch! Raises US$1.16 Million and Expands Regulatory Sandbox Operations

Ouch!, Malaysia’s digital takaful operator has successfully raised RM5 million (approximately US$1.16 million) in a recent funding round led by PPB Ventures Sdn Bhd. Notably, Ouch! has also received a one-year extension from Bank Negara Malaysia (BNM) to continue its operations within the Regulatory Sandbox, allowing the startup to refine its digital takaful offerings.

The new funding will enable Ouch! to expand its market presence, enhance its technology infrastructure, and drive product innovation. Shazy Noorazman, Chief Executive Officer of Ouch! Protect Bhd expressed that the investment will help the company address critical protection gaps for Malaysians, particularly for young families, as it works towards securing a DITO license from BNM.

With Malaysia’s takaful market experiencing growth—evidenced by a 7.55% increase in Family Takaful gross contributions, totaling nearly RM9 billion (approximately US$2.1 million). 

The Malaysian Takaful Association highlights that around 30 million Malaysians remain underserved in terms of financial coverage, emphasizing the startup’s mission to establish a secure digital platform that caters to the needs of all Malaysians.

Ouch! plans to invest the recent funding to expand its market share, enhance its technology infrastructure, and drive product innovation to achieve these objectives. A primary goal is to transition from a third-party core system to a proprietary, independent system, which will streamline operations and provide greater flexibility in offering digital takaful products. 

Additionally, the company is working towards obtaining a Digital Insurance and Takaful Operator (DITO) license from Bank Negara Malaysia (BNM), enabling it to provide a wider range of Shariah-compliant financial protection products.

Shazy Noorazman, CEO of Ouch! Protect Berhad expressed enthusiasm about the support from PPB Ventures, stating, “We are thrilled with the support from PPB Ventures as we push forward with our mission to redefine financial protection in Malaysia through Shariah-compliant, digital-first takaful solutions.” He added that the sandbox extension and DITO license will be crucial for enabling Ouch! to offer more personalized and accessible takaful solutions tailored to the needs of Malaysians, particularly young families.

Ouch! plans to initiate another fundraising round later this year to meet the minimum capital requirements for this license. 

Founded in September 2019, Ouch! aims to make the insurance experience straightforward, from purchasing plans to claims and policy management, offering solutions across life, home, travel, and motor insurance through an app-based platform that emphasizes transparency and ease of use.

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