Fuse Gets Funding from the eWTP Fund and Saratoga
Insurtech startup Fuse has announced that it has received additional funding in its series B (extended series B) funding round from eWTP Technology and Investment Fund, CE Innovation Capital (CEIC), and PT Saratoga Investama Sedaya Tbk. (Saratoga).
“We are very excited to welcome eWTP, CEIC, and Saratoga as our investors as they are leaders in their respective sectors. We look forward to the valuable experiences that will be gained from them,” said Fuse CEO Andy Yeung in a press release, Thursday (16/9/2021).
This funding from the eWTP Fund is the first step for eWTP to enter Indonesia as one of the largest economies in the Southeast Asia region. Last month, the company secured funding led by GGV Capital with participation from the past investors.
eWTP Targets Startups in Developing Countries
eWTP was founded with startup investment targets in developing countries. So far, eWTP has invested in India, Vietnam and Thailand, with $600 million in funds under management since 2018.
Jiang Dawei, Partner and CFO of eWTP, said, “As a market leader in Indonesia’s insurtech, Fuse has a unique value proposition that can empower traditional sales channels by connecting various insurance companies that have been scattered with a large network of agents and providing comprehensive insurance products for agents/brokers.
“Fuse has also demonstrated the ability to leverage innovative and cutting-edge insurance products from other countries to create a unique competitive advantage. Therefore, we see Fuse as a strong regional player in Southeast Asia in the near future,” said Jiang.
Fuse was founded in 2017 and is operated by two industry veterans, Andy Yeung and Ivan Sunandar. They already have more than 60,000 agent partners and have worked with more than 30 insurance companies in the field with more than 300 insurance products on the platform.
The total GWP (Gross Written Premium) which reached more than 50 million US dollars or Rp720 billion in 2020 made Fuse the largest insurtech company in Indonesia.
Fuse seeks to resolve trust issues among the 97 percent of Indonesians who do not have insurance. Xiaolin Zheng, Partner of CEIC, said, “Fuse has a competitive advantage in omnichannel distribution and technological innovation.
Investors Confident that Fuse will Develop Well
Fuse has also correctly positioned itself with the ‘To Agent’ model which has increased the efficiency of the insurance supply chain in a digital and innovative form.
“We believe Fuse is on the right track to scale up its long-term business. The low penetration of insurance products in Indonesia has also resulted in promising growth prospects and increased demand from consumers during the pandemic,” said Xiaolin.
Therefore, investors have high confidence in Fuse’s growth in the next phase. Michael WP Soeryadjaya, President Director of Saratoga, explained that investing in Fuse is expected to be an excellent opportunity for Saratoga to strengthen its portfolio in the digital technology sector.
“This sector shows great potential for growth, driven by the rapid growth in the use of digital technology and financial inclusion in Indonesia. As a leader in the insurtech sector in Indonesia, Fuse can provide better solutions and access for people to choose the right insurance product,” said Michael.
Insurtech startups are indeed gaining high traction during the pandemic. The achievements of startups from Indonesia are then replicated when they enter the regional market. This step was also taken by Fuse’s competitors, such as PasarPolis and Qoala.
PasarPolis has also spread its wings to Thailand and Vietnam. This startup claims to have processed more than 300 million policies by the end of August 2021. PasarPolis has also pocketed additional series B funding earlier this year of IDR 70 billion from IFC.
In addition to the two players, there is Qoala who has also pocketed series A funding worth IDR 209 billion led by MDI Ventures through the Centauri Fund.