Indonesia’s Kitabisa to receive $5m from IFC

Indonesia-based Kitabisa is set to receive an equity investment of up to US$5 million from global financial institution International Finance Corporation (IFC).

The online crowdfunding platform plans to expand its business to include Shariah insurance offerings at affordable costs, according to a disclosure on the IFC website. The insurance product will target the middle to lower-income segments.

Kitabisa CEO Muhammad Alfatih Timur / Photo credit: GenT

“Through an end-to-end digital business model, development of unique and affordable products, and a focus on increasing consumer awareness of insurance, Kitabisa will tackle some of the key barriers to insurance access in Indonesia,” IFC wrote.

The organization is listing the status of the investment plan as “pending approval”. Tech in Asia Indonesia has reached out to Kitabisa for comments.

In 2021, the company collaborated with insurtech startup PasarPolis to launch Kitajaga, a life insurance platform. Kitabisa is also working with Asuransi Takaful Keluarga to present Shariah insurance products, which are known in Indonesia as tabarru.

With tabarru, funds deposited by Shariah insurance participants are used to assist other participants in the event of a certain risk. Asuransi Takaful Keluarga acts as the manager of the funds purchased through the Kitajaga platform.

The Kitajaga launch came a few months after the country’s Financial Service Authority (OJK) closed down the operations of Saling Jaga because it lacked an insurance license. Saling Jaga was a mutual aid initiative launched by Kitabisa to help communities get health assistance amid the Covid-19 pandemic.

A version of this article was originally published by Rangga Naviul Wafi on Tech in Asia Indonesia.

See also: Full-stack insurtech is taking over SEA