Indonesia-based insurtech firm Qoala has successfully raised $7.5 million in a recent funding round, led by European investment firm responsAbility Investments AG.
The round, which also saw participation from Appworks and existing investors Eurazeo and Indogen, was part of the company’s Series B+ fundraiser. Qoala plans to use the capital to expand its product and geographic reach in emerging markets in Southeast Asia, with a focus on improving insurance accessibility and affordability.
Qoala’s goal is to democratize insurance by using an omnichannel presence and new product development. The company currently operates in Indonesia, Malaysia, and Thailand, offering various insurance and takaful protections that can be accessed through the Qoala app or website.
The firm has already paid out over $30 million in claims to its customers through partnerships with insurers across its three markets.
Harshet Lunani, Qoala’s Founder and CEO, said the recent funding would enable the firm to further simplify insurance ownership by advancing its product offerings and experience, strengthening its position for sustainable growth in the region.
Qoala has managed to double its volume of gross written premiums since its last funding round in May 2022, alongside strengthening its market presence in the region.
Its emphasis on technology has also shortened its go-to-market speed and improved product experience, leading to an 85% year-on-year increase in the average commission payout in 2022, coupled with the company’s in-house upskilling programs.
Ruzgar Barisik, on behalf of responsAbility’s financial inclusion private equity practice, said Qoala’s growth throughout the pandemic indicates that its omnichannel approach can distribute insurance to parts of the population that are currently not served by the incumbents or have not been previously insured.
In addition to its financial contributions, Qoala also empowers the public with financial literacy across various offline and online platforms. The company provides job opportunities to more than 60,000 agents and additional revenue streams to over 65 businesses, contributing positively to the economy.
Access to insurance has been a key element in promoting financial inclusion, as it contributes to a country’s balanced and sustainable economic growth and development. With its recent funding, Qoala plans to further promote financial inclusion in emerging markets in Southeast Asia.