PasarPolis Received Series-B Funding of IDR 798 Billion
PasarPolis received Series B funding of USD 54 million or around IDR 798 billion. Investors involved in this funding round include LeapFrog Investments and SBI Investment, venture capital firms Intudo Ventures and AlphaJWC, and Xiaomi.
In addition, investors in the Series A round also participated in this year’s funding round. The company claims that the investment value achieved is the largest Series B funding in Southeast Asia for insurtech startups.
“With the support of LeapFrog Investments as the world’s leading private equity firm, the global company Xiaomi, and other investors with their respective expertise, we will continue to advance the industry through innovation and best service to society,” said Cleosent Randing, Founder and CEO at PasarPolis. official statement.
Good growth amid the pandemic and challenging economic conditions have strengthened PasarPolis’s bargaining position in this sector. Cleosent said that PasarPolis had recorded a policy sales growth of more than 80 times since the Series A funding in August 2018.
In addition, said Cleosent, the number of PasarPolis strategic partners also increased fourfold in the same period. The proceeds from the funding will be used for research and development of protection products according to the needs of the community based on artificial intelligence technology and Big Data.
Expand Agent Network and Investors’ Role
The company also seeks to increase insurance penetration in its operating countries by expanding its agent network which is claimed to have reached 10,000 agents. Currently, the insurance penetration rate in Southeast Asia is still low, which is around 3.6 percent.
Cleoscent is optimistic that PasarPolis will be able to increase insurance penetration in Southeast Asia including Indonesia through “expanding public access to insurance products that are inclusive, affordable, and efficient.”
LeapFrog Investments as a global leader in the impact investing sector will support the company’s commitment to providing the widest possible access to insurance. Meanwhile, Xiaomi will assist PasarPolis in presenting insurance in a more holistic and easy way with the concept of “mobile-first insurance”.
In 2019, PasarPolis has issued more than 650 million policies for people who have not or rarely use insurance services, including online motorcycle taxi drivers, delivery couriers, and online MSME players.
Through collaborations with more than 30 leading insurance companies in Southeast Asia, PasarPolis develops products that suit various needs of society. “In the long term, we will build an insurtech company that continues to deliver services that are more efficient, faster, sustainable, and loved by all,” Cleosent said closing his statement.
There Has been an Increase in Demand for Insurance during the Pandemic
Consumers started shopping online during the corona pandemic. The high demand for e-commerce services has a positive impact on the insurance startup (insurtech) PasarPolis. PasarPolis founder and CEO Cleosent Randing said the demand for freight insurance increased during the coronavirus pandemic.
“People sending goods need to be insured. This is also driven by the use of e-commerce, which has also increased,” he said during a virtual press conference, Wednesday (2/9). PasarPolis is indeed focused on providing insurance solutions according to partner needs (tailor-made).
With Tokopedia and other e-commerce, for example, this startup provides goods protection insurance. Based on research by Facebook and Bain & Company, the number of digital service consumers in the country is predicted to increase from 119 million in 2019 to 137 million this year.
The increasing demand for e-commerce services and the number of digital consumers during the pandemic had a positive impact on insurance needs. “During the Covid-19 era, public awareness of buying insurance has increased,” said Cleosent.
Even so, Cleosent said that the demand for insurance in PasarPolis always increases every year. Compared to 2018, the increase was 80 times last year.
In 2019, PasarPolis issued more than 650 million policies. This service is provided to online motorcycle taxi drivers, goods delivery couriers, and online MSME players, and others. While the increase in demand this year, Cleosent did not submit the data.