Insurtech startup PolicyStreet banks $1.8m in series A money

Malaysia-based insurtech startup PolicyStreet said it has raised US$1.8 million in series A investment in a round led by existing backer KK Fund.

The investment round also saw participation from another Singapore VC fund, Spiral Ventures. PolicyStreet gained the support of both international and local angel investors through equity crowdfunding platform PitchIN, according to a statement.

The PolicyStreet team / Photo credit: PolicyStreet

Launched in 2017, PolicyStreet’s online platform enables consumers and businesses to choose and purchase insurance policies based on their needs. It also uses a hybrid offline-to-online operating model to communicate insurance complexities to its customers.

In 2019, the company obtained approval from the Central Bank of Malaysia to become a financial adviser and Islamic financial adviser, allowing it to work with over 35 insurers and offer more than 1,000 insurance products.

With the new funds, the startup plans to further improve its product, increase sales and marketing efforts, and expand into other emerging markets in the region. PolicyStreet co-founder and CEO Yen Ming Lee told Tech In Asia that the company is currently looking into entering Indonesia as well as Indochina within the next six to 12 months.

“Covid-19 has increased the awareness and need to have adequate insurance protection, which has accelerated the business demand for PolicyStreet,” said KK Fund general partner Koichi Saito.

Lee said that the firm has seen a shift in the type of insurance products its users are searching for and buying amid the pandemic, moving from travel insurance to medical policies. The chief exec also noted that the company has seen its sales for the first quarter grow by 580% year over year.

Since its inception, PolicyStreet claims to have reached roughly 225,000 customers, selling 36,000 policies worth roughly US$832.8 million. Its partners include Great Eastern, Allianz, Zurich, AXA, and Manulife.

With its Southeast Asian expansion plans, it is primed to go up against other startups such as B Capital-backed CXA, Gojek’s GoSure, AMTD-backed PolicyPal, and Singtel-backed Igloo (formerly Axinan).