Igloo closes $36m Pre-Series C funding round, poised for further expansion in Việt Nam

Regional insurtech Igloo has closed a US$36 million Pre-Series C funding round to support its regional expansion via strategic acquisitions. — Photo courtesy of the company

HCM CITY — Regional insurtech Igloo has closed a US$36 million Pre-Series C funding round led by global investment firm Eurazeo through its insurtech fund backed by the insurer BNP Paribas Cardif.

Openspace and La Maison, who previously participated in Igloo’s Series B and Series B+ fundraises, also joined in, reaffirming their confidence in the company’s strong business fundamentals.

This latest round comes just 10 months after Igloo’s previous Series B+ fundraise led by BlueOrchard-managed InsuResilience Investment Fund II. In total, the company has raised $100 million. Notably, Igloo’s Pre-Series C round closed at an increased valuation of 50 per cent from its Series B+ round in 2022, as the company moves closer to profitability in 2024.

Igloo said it is on track to double its 2022 gross written premiums at a low burn rate; with its robust engineering core and data focus, the company’s path to profitability in 2024 is set.

“The insurance market in Southeast Asia is still very underpenetrated and we believe Igloo is in a strong position to help solve this by making insurance more easily accessible and understandable for consumers,” said Albert Shyy, managing director, Eurazeo.

Igloo’s offerings include Ignite by Igloo, a digital platform that enhances the productivity of sales intermediaries in Việt Nam and Indonesia. Ignite by Igloo works with 22,000 sales intermediaries and agent partners across the region and aims to close 2023 with 50,000 agents as it expands into other markets.

Another innovation for Igloo is its Weather Index Insurance, a pioneering blockchain-based parametric insurance for farmers. The product has drawn interest from partners in Việt Nam and across Southeast Asia for its potential to greatly benefit the agricultural sector. It has already been adopted by thousands of farmers since launching last November and covers 20,000 hectares of coffee and padi farms.

“With a low insurance penetration rate of 3.3 per cent, Việt Nam presents significant growth potential for the insurance industry and remains a key market for Igloo,” said Trí Nguyễn, Country Manager Vietnam, Igloo.

“The additional funding will empower us to drive initiatives for further expansion in the Vietnamese market, including the introduction of new products and fostering collaborative relationships with partners across verticals,” he added. — VNS