PasarPolis bags US$ 5M in equity finance

Indonesia-headquartered insurtech startup PasarPolis announced in February 2021 that it has raised US$ 5M in equity finance from International Finance Corporation (IFC), a fragment of the World Bank Group.

The startup will use proceeds from the funding round to back its mission to increase insurance usage and literacy across Indonesia, Vietnam and Thailand in 2021. Commenting about the same, PasarPolis Founder and CEO Cleosent Randing said from an industry perspective, Vietnam and Indonesia have similar features in their insurance market, with Thailand having a comparatively higher awareness of insurance. He added that there are multiple things that they have implemented in Indonesia that they can implement in these countries as well. 

Pasarpolis was founded in 2015 and is a leading insurtech startup focusing mainly on microinsurance. It strives to continually develop trailblazing technology to streamline and accelerate the insurance process from policy purchase right until retrieving claims. It claims to be having over 30 million users, which is almost 11 per cent of Indonesia’s population. The startup considered the figure a notable achievement as the country’s general insurance penetration rate is still less than four per cent. It also stated that 90 per cent of its users are first-time buyers of insurance products with 40 per cent of policyholders being workers in the informal sector.

Statements from the investors:

PasarPolis and IFC specified that together they would continue and fortify PasarPolis’ goal to democratize insurance more broadly, through the development of micro-insurance products that are inexpensive and in accord with the needs of the society. Randing said, “We see this as a strategic partnership as it involves more than just funding. We are working together with world-class partners to achieve our mission.”

Assistant Minister for Financial Services and Capital Market Policy and Regulation at Indonesia’s Ministry of Finance, Arif Baharudin said the low infiltration rate of insurance products gives insurance companies an excellent opportunity to flourish. He also noted that the development of insurance would be driven by social insurance in the future. He pointed out various reasons that prevent financial inclusions in Indonesia, from financial literacy and access to financial services to consumer protection.

He was quoted to say, “Digitalisation plays a crucial role in tackling these challenges.”

In September 2020, PasarPolis raised US$ 54M in a Series B funding round from investors such as LeapFrog Investments, SBI Investment, Alpha JWC, Intudo Ventures, Go-Ventures and Xiaomi.

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