In less than two years following its successful Series A fundraising round, insurtech startup PolicyStreet has recently obtained a substantial amount of US$15.4 million (equivalent to RM67 million) in its series B funding led by Khazanah.
Dana Impak, a key component of Khazanah’s Advancing Malaysia strategy, is an allocation of RM6 billion spanning five years. Its primary objectives are to enhance Malaysia’s economic competitiveness, foster national resilience, and generate socioeconomic benefits for Malaysians.
On a mission to deliver impact
In a statement, it was revealed that Khazanah’s investment in PolicyStreet aligns with its Future Malaysia Programme, which aims to foster the local startup ecosystem encompassing entrepreneurs, startups, venture capital, and corporate venture programs through collaborations with both domestic and international partners.
The Future Malaysia Programme focuses on investing in companies that possess sustainable business models capable of generating socioeconomic impact for Malaysia. PolicyStreet, as an example, falls under this category, requiring the infusion of risk capital.
Dato’ Amirul Feisal Wan Zahir, the managing director of Khazanah, stated, “Our investment in PolicyStreet aims to enhance insurance penetration within the unserved and underserved segments, promoting inclusivity and providing improved financial protection, thereby enhancing household resilience and financial well-being.”
To ensure socioeconomic impact across all its investments, Khazanah has applied its impact assessment framework, known as the SEMARAK Initiative, during the evaluation process of this investment.
Khazanah’s impact thesis is based on the notion that innovative insurance solutions offered by insurtech companies like PolicyStreet provide accessible and meaningful coverage to individuals who have been historically underserved. This, in turn, contributes to enhancing financial protection, household resilience, and promoting financial well-being for Malaysians.
Strengthening its technology and capabilities
Yen Ming Lee, the CEO and co-founder of PolicyStreet, expressed the company’s dedication to empowering underinsured businesses and consumers through accessible insurance solutions.
PolicyStreet’s recent fundraising round received significant support from various local and international investors, including Altara Ventures, Gobi Partners, and Spiral Ventures.
With the newly acquired funds, the insurtech startup plans to enhance its technological infrastructure and underwriting capabilities. Their primary focus is to expand their on-demand underwriting policies, making insurance coverage more accessible. This strategic move will enable them to tap into underserved and underinsured audience segments in Malaysia and the wider region.
Altara Ventures’ General Partner, Dave Ng, expressed pride in PolicyStreet’s accomplishments, noting that the company experienced fivefold growth in 2022 and achieved a sum insured of over US$6 billion while serving more than five million customers. As the lead investor in PolicyStreet’s Series A round, Altara Ventures is doubling down on their support for the team and eagerly looks forward to assisting the company’s regional expansion efforts.
Established in 2017 by Yen Ming Lee, Wilson Beh, and Winnie Chua, PolicyStreet operates as a comprehensive insurtech company, offering digital and personalized insurance solutions to both consumers and businesses.
In 2019, PolicyStreet obtained Financial Adviser and Islamic Financial Adviser licenses from Bank Negara Malaysia (BNM), enabling them to collaborate with over 40 insurance and takaful providers to provide financial advice, education, and claims support to their customers.
Furthermore, in 2021, PolicyStreet acquired Reinsurer and General Insurer licenses from the Labuan Financial Services Authority (LFSA), further solidifying their presence in the industry.
Learn more about PolicyStreet here.
More info at:
Malaysia-based PolicyStreet bags $15.3m from sovereign fund (techinasia.com)
Khazanah kumpul RM67 juta dilabur dalam PolicyStreet (bharian.com.my)
M’sian insurtech PolicyStreet bags US$15.3 mil in Series B funding (vulcanpost.com)
Khazanah invests in PolicyStreet to enhance protection for Malaysia’s underserved market | The Star