MICROCAPITAL BRIEF: Insurtech PasarPolis of Indonesia Raises $5m in Equity from International Finance Corporation (IFC) for Microinsurance

Indonesia-based insurance technology (insurtech) firm PasarPolis recently raised USD 5 million in equity from the International Finance Corporation (IFC), a member of the World Bank Group. The firm plans to use the fresh funds “to develop infrastructure to connect insurers, digital platforms and customers unserved by the traditional insurance sector” during and after the COVID-19 pandemic. The size of the stake IFC is taking has not been disclosed.

PasarPolis was founded in 2015 by Cleosent Randing, who remains the firm’s CEO. In addition to Indonesia, PasarPolis provides insurance in Thailand and Vietnam. The firm’s offerings include protection for: (1) customers’ online purchases; (2) small businesses’ inventory in case of damage or loss; and (3) the health of ride-share drivers and passengers in case of accidents. PasarPolis is also a licensed insurance broker, allowing it to sell products such as vehicle and health insurance for 30 insurers.

PasarPolis is headquartered in Jakarta and issued approximately 650 million policies during 2019. It has served 35 million customers since its founding in 2015. In addition to IFC, the investors in PasarPolis are the Indonesian venture capital firms Alpha JWC Ventures, East Ventures and Intudo Ventures; three Indonesian firms active in transportation, Gojek, Tokopedia and Traveloka; US-based LeapFrog Investments; Japan’s SBI Investment; and Chinese technology firm Xiaomi.

Founded in 1956, IFC offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of June 2020, IFC reported total assets of USD 95.8 billion.

The World Bank Group is a multilateral organization whose goal is “to end extreme poverty and promote shared prosperity in a sustainable way.” As of 2021, it has 189 member nations. The group encompasses: (1) IFC; (2) the International Bank for Reconstruction and Development and the International Development Association, which make up the World Bank; (3) the Multilateral Investment Guarantee Agency; and (4) the International Centre for Settlement of Investment Disputes. During the 12 months ending June 2020, the World Bank Group disbursed funds totaling USD 54 billion.

By Aakansha Shenoy, Research Associate

Sources and Additional Resources

IFC press release
https://pressroom.ifc.org/all/pages/PressDetail.aspx?ID=26179

PasarPolis homepage
https://pasarpolis.io

Alpha JWC Ventures homepage
https://www.alphajwc.com/

East Ventures homepage
https://east.vc/

Gojek homepage
https://www.gojek.com/

Intudo Ventures homepage
https://www.intudovc.com/

LeapFrog Investments homepage
https://leapfroginvest.com/

SBI Investment webpage
https://www.sbigroup.co.jp/english/company/group/sbinvestment.html

Tokopedia homepage
https://www.tokopedia.com/

Traveloka homepage
https://www.traveloka.com/