PayPal Ventures recently invested in an Indonesian startup that offers personal insurance products for over 5 million customers, covering various risks such as accidents, phone screen damage, and ticket cancellations.
Qoala has raised $47 million in a new funding round led by PayPal Ventures and MassMutual Ventures, among others. The startup, based in Jakarta, partners with local insurers and e-commerce companies to provide customizable and affordable insurance products.
Despite Indonesia being the fourth most populous country globally, the insurance penetration rate there remains below 4%, lower than the global average. Factors contributing to this include limited awareness, low income levels, and a fragmented insurance industry.
Qoala simplifies the insurance process through its website, app, and network of agents, while using machine learning to enhance fraud detection. It has processed thousands of claims and added new users, reaching a total of over 5 million customers across multiple countries.
The startup’s gross written premiums have increased significantly and it plans to use the funding for strategic acquisitions, partnerships, and AI integration.
PayPal Ventures, already invested in Indonesia, sees Qoala as a solution for the protection gap in Southeast Asia, praising its impact and innovation in the insurance industry.
Qoala’s success in a short period of time has garnered praise from investors like PayPal Ventures, who also invested in other Southeast Asian startups like Gojek.
