HK’s OneDegree raises $27m to expand insurance reach in Asia

OneDegree, a Hong Kong-based insurtech firm, has raised US$27 million in the second tranche of its series B funding round. This brings its total funds raised to date to over US$100 million, CEO Alvin Kwock told Tech in Asia.

The fundraise saw participation from investors like Gobi Partners, BitRock Capital, and Sun Hung Kai. It follows the US$28 million it raised in the first tranche of its series B round in August 2021.

“In this round, we have some new investors who are large financial institutions and strategic partners. We will raise another round and then go for an IPO – tentatively after 2024,” said Kwock.

The firm did not disclose its current valuation or the names of its new investors.

Funding details Funding amount: $27,000,000 Other investors: Gobi Partners, BitRock Capital, Sun Hung Kai & Co. Limited (新鸿基有限公司) Stage: Series B1 Source

OneDegree will use the funds to further expand in Asia and invest in its AI capabilities.

The company said it has been able to bring down its loss ratio by about 40% thanks to using data analytics to fix premium prices and detect fraud. It aims to turn profitable by the end of 2024.

Founded in 2016 by Kwock and Alex Leung, OneDegree has expanded from its initial pet insurance focus into other categories such as parcel, home, and health products.

The company recently formed a partnership with Microsoft to integrate the US tech firm’s AI service into its automated chat and cybersecurity solutions.

See also: Is 2022 the year in insurtech? Not so fast

More details OneDegree→

The company was founded in 2016 by Alvin Kwock and Alex Leung.

Stage Amount (US$) Investors Series A $42.7M Cathay Venture, BitRock Capital , Cyberport Hong Kong (数码港) Series B $28M AEF Greater Bay Area Fund, Sun Hung Kai & Co. Limited (新鸿基有限公司) Series B1 $27M BitRock Capital, Gobi Partners, Sun Hung Kai & Co. Limited (新鸿基有限公司) Total $97.7M