Igloo raises $36m, eyes profitability by 2024

Photo credit: Igloo

Igloo, a Singapore-based insurtech company, announced that it has raised US$36 million in a pre-series C funding round led by French investment firm Eurazeo.

Igloo’s valuation has jumped 50% with the new funding, the company said without specifying the figure. This round, which also saw participation from La Maison and Openspace Ventures’ OSV+, has brought Iglo’s total raised to over US$100 million.

In an interview with Tech in Asia, Igloo CEO and co-founder Raunak Mehta said that the company – formerly known as Axinan – will use the fresh funds to support its acquisition efforts next year as well as to strengthen its data infrastructure.

Cost of expansion

The investment follows Igloo generating a 44% year-on-year increase in revenue to S$5.1 million (US$3.8 million) in 2022, according to regulatory filings.

However, Igloo grew its net loss to US$11.4 million, up 57% compared to 2021. Its cashflow used in operating activities widened to US$11.8 million from US$7.2 million the year before.

Mehta said the losses mainly came from a 25% increase in the company’s workforce at the time, causing expenses for employee compensation to shoot up.

“The losses swelled up this much because of the non-cash expenses, which are attributed to employee stock options,” Mehta explained, adding that Igloo is committed to providing stock options to every employee in the company.

Despite the loss, last year was a “fairly landmark year” for Igloo, he added.

For one, its business took off in Vietnam, where it launched a new product offering called Ignite by Igloo, an AI-powered productivity enhancement platform for sales intermediaries. This is also available in Indonesia.

Igloo also recently rolled out Weather Index Insurance, a blockchain-based parametric insurance product for farmers in Vietnam and other markets across Southeast Asia.

Despite being a recent addition, Vietnam has quickly become one of Igloo’s largest markets, Mehta said. Igloo also operates in Thailand, Malaysia, China, India, and the Philippines.

Profitable growth

Igloo is not planning to hit the brakes on expansion just yet. The company said it is looking at acquisition opportunities and expanding its workforce by 20% across various sectors, all while striving to achieve profitability by next year.

“We expect gross margins to have a significant increase in 2023 over 2022 and, at the same time, to keep our operational expense in check,” Mehta said.