Indonesia-based insurtech startup Fuse announced today it has secured $25 million of Series B extension round as it plans to enter more countries, including Thailand and Vietnam in Southeast Asia. The startup has closed three funding rounds of Series B within the past six months, bringing the company’s total raised to more than $70 million.
The fresh capital was led by an undisclosed global fintech fund, with participation from existing investors East Ventures, GGV Capital, eWTP and Emtek.
Launched in 2017, Fuse connects insurance companies with multiple distribution channels and partners to make insurance services accessible and affordable through its technology. Fuse uses mobile applications to offer an agent-focused service, B2A (Business to Agent/Broker). The Fuse Pro app enables agents and broker partners to maximize choices for their customers. The startup also has B2C and B2B2C (micro insurance and financial institute), which provides digital small-ticket size insurance products, distributing insurance products cost-effectively to end customers by partnerships with e-commerce channels like Tokopedia.
Southeast Asia’s rapidly growing digitally savvy middle class that is expected to grow to 350 million consumers with $300 billion in disposable income makes the region an attractive market for insurtech companies. The pandemic accelerated the digital transformation in the insurance industry, one of the most conservative sectors. Fuse plans to tap into the huge and underpenetrated insurance industry in other countries in Southeast Asia, where more than 70% of Southeast Asia’s population is connected to the internet.
“We deeply believe that digital insurance transformation can help more people get protection with insurance, and hopefully, the insurance penetration rate can increase substantially in the coming years in Indonesia as well as Southeast Asia,” said Andy Yeung, CEO of Fuse.
Fuse claims it currently has more than 60,000 marketers or agent partners using the Fuse Pro mobile app. More than 40 insurance companies, including general and life insurance companies, use Fuse’s platform to offer over 300 insurance products for partners or end customers. The company has exceeded $70 million in gross written premium (GWP) for the first three quarters of 2021. The company said it has the largest GWP in Indonesia and Southeast Asia.
The company has more than 460 employees, with branch offices in Indonesia, Vietnam and China.
“We are very glad to be recognized by a leading global fintech fund which had looked into most insurtech players in Southeast Asia and decided to invest in Fuse. We are very excited to get access and insights from other fintech and insurtech portfolio companies in this global network. The strong interest of global investors reconfirms our current ecosystem approach — using Fuse’s technology platform to make insurance more accessible for Southeast Asia’s underpenetrated population,” Yeong said.