In the rapidly evolving landscape of online commerce, the integration of ancillary services, particularly insurance, has become a pivotal factor for businesses aiming to enhance customer experience. The challenge lies in presenting these offerings at the most opportune moment during the purchasing process, ensuring that customers are inclined to invest that extra dollar to enhance their transaction.
As e-commerce continues to flourish, companies that facilitate the connection between service providers and product distributors are witnessing a surge in interest from both consumers and investors alike. A notable player in this arena, a Singapore-based firm, recently announced the successful closure of a $147 million Series C funding round, achieving a remarkable valuation of $2.1 billion.
This announcement follows a previous funding round six months ago, where the company secured approximately $100 million, led by a prominent investment group, with contributions from various notable investors. The latest funding round also saw participation from significant entities, including a major Japanese corporation and a Portuguese investment firm, further solidifying the company’s financial backing.
Founded in 2020 by an industry expert, the company specializes in embedded insurance solutions, seamlessly integrating protection products into the customer purchasing journey. With a robust B2B2C model, the firm has rapidly attracted substantial funding and now boasts connections with around 700 distribution partners and over 230 insurers, offering a diverse range of more than 6,500 products globally.
As part of its Series C funding strategy, the company is embarking on a joint venture with a leading corporation to deliver comprehensive embedded insurance products and services to partners across Asia.
The newly acquired funds will be directed towards enhancing research and development capabilities, particularly in the realms of data analytics and artificial intelligence, as well as expanding operations in regions such as Africa and North America.
While the number of distribution partners and insurers has remained relatively stable compared to figures from three years ago, the company reports a significant increase in total annualized quoted premiums, rising to approximately $60 billion as of April this year, up from around $55 billion in May 2023.
In recent years, a wave of embedded insurtech startups has emerged, driven by the shift towards online shopping and the need for insurers to adapt to changing consumer behaviors. However, the company faces competition not only from traditional insurers but also from tech-savvy players in the market. The CEO emphasizes the importance of ‘coopetition,’ advocating for collaborative efforts to bridge the protection gap and expand insurance access for customers worldwide.
The company’s diverse investor portfolio includes major insurers and has established partnerships with renowned brands across various industries, further enhancing its market presence and capabilities.