Insurtech startup Igloo raises further US$27m funding; looking at M&A

IGLOO, a Singapore-based insurtech startup, has raised an additional US$27 million in Series B funding, in an extension to the US$19 million round earlier in March.

The latest round was led by the InsuResilience Investment Fund II, a fund initiated by the German development bank KfW and managed by impact investor BlueOrchard Finance.

It was joined by WWB Capital Partners II, which is managed by Women’s World Banking Asset Management, as well as investment firms Finnfund and La Maison and global venture firm Cathay Innovation, which had led the March round.

Igloo was founded in 2016 by former Grab chief technology officer Wei Zhu, who was later replaced by Raunak Mehta as the startup’s chief executive.

The company specialises in developing customised insurance solutions. For instance, it has worked with Indonesian e-wallet operator Dana to come up with an insurance product specifically for gamers.

The startup also partnered foodpanda in Thailand, Singapore and the Philippines to provide insurance for delivery riders. It recently launched a parametric Weather Index Insurance product in Vietnam to protect rice farmers against adverse weather risks.

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Igloo said that the latest fundraise provides it with a “comfortable multi-year runway”, and that it is now “in the process of identifying and closing on various merger and acquisition opportunities”. The startup also plans to attract more engineering, product, design and data talent; half of its current team is already committed to research and development.

“We are now well positioned to leverage our expertise and accelerate our growth across the region, and further strengthen our products and services portfolio that addresses the traditional insurance gaps,” said Mehta.

Mahesh Joshi, head of Asia private equity investments at BlueOrchard, said that the startup has a “profitable, sustainable and socially-conscious business model”.