Malaysia-based digital insurance platform PolicyStreet has raised US$6 million (RM 25 million) funding in a Series A round. Altara Ventures-backed by an investor and businessman, Koh Booh Hwee, Gobi Partners, and Auspac Investment Management led the funding round.
The startup raised funding earlier during the peak of the COVID-19 pandemic last year in June through PitchIN, Spiral Ventures, and KK Fund. It was the largest amount raised from an equity crowdfunding platform in the country.
The new funding round coincided with the startup securing in-principle approval for a collective General Insurance and Reinsurance license from the financial regulator for Financial Center and Labuan International Business, Labuan Financial Services Authority.
PolicyStreet becomes the second InsurTech to be granted the license. This license will allow PolicyStreet to underwrite general risks and reinsurance as it aims to expand its footmark and key partnerships in the region with this fresh infusion of funds.
It also aims to double up its marketing efforts and technological capabilities to offer a better variety of insurance products to meet the increasing demand and address the protection gaps.
According to Yee Ming Lee, CEO and Co-founder of PolicyStreet, “We are truly proud to have Altara, Auspac, Gobi and the Leong family’s belief in our vision. We are excited to introduce new sachet-based and on-demand insurance products with our new license to power up the digital ecosystem, while continuing to provide value to all our existing customers in South East Asia. With a very seasoned and experienced team of investor partners, PolicyStreet.com is convinced that our new investors will be able to help us grow to be the leading insurtech in the region.”
Allen Cheong, CEO of Auspac Investment Management, said that he is “impressed with how the management team of PolicyStreet has scaled up its market presence in Malaysia within the last few years”. Similarly, Thomas Tsao, founding partner and chairperson of Gobi Partners, praised the startup’s “multiple strategic partnerships”.
PolicyStreet was founded in 2017 by former finance and insurance professionals; Wilson Beh, Yeh Ming Lee, and Winnie Chua. The InsurTech platform makes buying insurance simple and affordable with transparency. The users can buy insurance policy directly from PolicyStreet.com.
Central Bank of Malaysia had granted Islamic Financial Advisory and Financial Advisory approval to the startup in 2019. This enabled the company to work with 40 takaful and insurance providers in aggregating, sourcing, customizing and advising consumers on the best insurance products per their needs.
PolicyStreet is also working in the auto insurance segment along with a subsidiary of Carro in Malaysia, myTukar, and AirAsia Money. The company also has a tie-up with Foodpanda to offer coverage to delivery riders.