Qoala raises another $7.5m, targets profitability in 3 years

Team Qoala in Malaysia / Photo credit: Qoala

Indonesian insurtech startup Qoala announced that it has raised US$7.5 million in a series B extension round led by Europe’s responsAbility Investments. Existing investors Eurazeo and Indogen as well as new investor AppWorks also participated in the round.

The startup declined to comment on its valuation, but VentureCap Insights currently pegs it at US$310 million following the fundraise.

Founded by Harshet Lunani and Tommy Martin in 2018, Qoala distributes retail insurance products such as home, health, and vehicle coverage through its omnichannel platform.

The firm also offers microinsurance products through partnerships with Traveloka, Dana, Shopee, Kredivo, and Investree, among others.

Besides Indonesia, Qoala operates in Thailand, Malaysia, and Vietnam. The company said that it has a network of 8 million customers, 60,000 agents, and 75 insurers.

CEO Lunani told Tech in Asia that the startup sees huge potential in retail insurance, where concentration risk is lower than corporate insurance. This is particularly relevant in emerging markets in Southeast Asia, where insurance accessibility and affordability are prevailing challenges.

Qoala said that its customers have benefited from over US$30 million in claims to date.

According to Lunani, the startup currently has a positive contribution margin in Indonesia and Thailand. It expects to become profitable in the next three years.

In 2021, Qoala acquired Thailand-based FairDee to enter the market.

However, given the current economic climate, the company noted that it is currently prioritizing unit economics over market expansion in the near future.

“The key is to understand that people need insurance to unlock their potential,” Lunani said. “When you’re well-insured, you think more of the upside than the downside.”

See also: How Indonesian insurtech is changing the game