Southeast Asia Insurtech Funding Drops 61% With Deals Sparse

Insurtech investment in Southeast Asia has contracted sharply, with total funding falling to US$193m in 2024 from US$495m in 2023, according to data from Tracxn, a private market intelligence platform.
The decline also represents a 21% drop from 2022's total funding of US$245.6m.
Regional Overview
“The region's ability to attract major global corporations and maintain its standing as a burgeoning tech hub underscores its potential to boost growth in the region”
The decline mirrors global venture capital trends, as investors respond to increased borrowing costs and economic uncertainty. Late-stage funding proved resilient, rising 11% to US$147m, whilst early-stage investment fell 80% to US$38.5m from US$353m in 2023.
Singapore maintained its position as the region's primary insurance technology hub, securing US$135m in new investment.
The city-state ranks fourth globally in financial technology funding behind the United States, United Kingdom and India.
Indonesia and Vietnam have experienced manufacturing sector expansion, with global companies establishing new facilities attracted by competitive labour costs and foreign direct investment policies.
Deal Flow Analysis
Bolttech, a provider of insurance-as-a-service solutions, secured the largest funding round at US$100m through its Series C raise.
This represented the only transaction above US$100m, compared with two such deals in 2023.
Insurance technology infrastructure providers attracted US$135m in funding, a 47% decrease from US$256m in 2023, though this marked an 8% increase from US$125m in 2022.
Internet-first insurance platforms raised US$51.7m, marking a 78% decline from US$236m in 2023 and a 56% decrease from US$115m in 2022.
Employee benefits technology companies received US$6.5m, down 65% from US$18.5m in 2023, though this represented a 27% increase from US$5m in 2022.
Market Consolidation
“Despite a sharp downturn in InsurTech funding, Southeast Asia's resilience, evolving economic landscape, and growing government support provide optimism for future growth”
The sector saw reduced merger activity, with only one recorded transaction as Roojai acquired Lifepal, an insurance comparison platform.
This compares with five acquisitions in 2023 and two in 2022.
Jakarta-based companies secured US$50.5m in funding, whilst Kuala Lumpur-based firms raised US$1.2m.
Investment firms Wavemaker Partners, East Ventures and Openspace Ventures led later-stage rounds, whilst Y Combinator, Bee Next and Appworks focused on seed investments. EDBI, Peak XV Partners and KB Investment emerged as the leading early-stage investors.
The fourth quarter proved most active, with companies securing US$105m, accounting for nearly half of the year's total funding.
The second half of 2024 saw US$111m in investment, marking a 35% increase from the first half but a 50% decline from the second half of 2023.
“Despite a sharp downturn in InsurTech funding, Southeast Asia's resilience, evolving economic landscape, and growing government support provide optimism for future growth,” says Tracxn.
“The region's ability to attract major global corporations and maintain its standing as a burgeoning tech hub underscores its potential to boost growth in the region.”
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