KUALA LUMPUR: Khazanah Nasional Bhd recently led a Series B fundraising round of a Malaysian homegrown insurance technology company, PolicyStreet, raising a total of US$15.3 million or about RM67 million.
Khazanah managing director Datuk Amirul Feisal Wan Zahir said the fund's investment in PolicyStreet sought to improve insurance penetration within the unserved and underserved segments which advocates inclusivity, better financial protection, increasing household resilience and financial well-being.
"We will continue to invest in innovative and impactful solution providers that leverage technology and product innovation to serve the nation. This is aligned with our commitment to spur the local start-up ecosystem as part of our strategic imperatives via the Future Malaysia Programme," he said in a statement today.
Dana Impak, a RM6 billion investment over five years, is a significant component of Khazanah's Advancing Malaysia strategy to boost the country's economic competitiveness, strengthen national resilience, and provide social benefits to Malaysians.
Khazanah said the investment in PolicyStreet enhanced the "Future Malaysia Programme" launched in March this year.
The programme was designed to support local start-up ecosystems comprising entrepreneurs, start-ups, venture capital, and corporate venture programmes through partnership with domestic and international partners.
It deployed an initial funding of approximately RM180 million through partnerships with established local and international venture capital managers and corporate venture programs in Malaysia.
PolicyStreet chief executive officer and co-founder Yen Ming Lee said the company was committed to empowering underinsured businesses and consumers by providing accessible solutions.
"With over half a million B40 gig workers and 50,000 small-medium enterprises (SMEs) already benefiting from our services, we intend to serve 2.5 million gig workers and 300,000 SMEs within the next five years, creating a more financially inclusive future for communities in Malaysia and the region," Lee said.
PolicyStreet, a full-stack InsurTech company, offers digital and customised insurance solutions to consumers as well as businesses.
The company intends to close the protection gap while increasing Malaysia's insurance penetration rate, which presently stands at 5.3 percent, trailing global counterparts such as Singapore at 9.3 per cent and the Organisation for Economic Cooperation and Development at 9.4 per cent.