Indonesian insurtech start-up PasarPolis has closed an extension funding round with Japanese insurance major Tokio Marine emerging as the lead strategic investor, DealStreetAsia has learnt.
Although the exact size of the investment has not been confirmed, sources suggest it is around US$5 million.
PasarPolis declined to comment when contacted.
The fresh capital will give the Jakarta-based firm greater scope to expand regionally and strengthen its position in Southeast Asia’s insurtech market.
Founded in 2015, PasarPolis offers affordable micro-insurance products covering travel, logistics, health, and electronics.
Its policies are often embedded within platforms such as Gojek, Tokopedia, and Xiaomi.
Through a strategic partnership with Tap Insurance, the company operates as a full-stack insurtech, underwriting and distributing policies directly.
PasarPolis last raised a US$12 million bridge round in late 2023, following a US$54 million Series B round in 2020 backed by LeapFrog Investments, SBI Investment, Alpha JWC Ventures, Intudo Ventures, Go-Ventures, and Xiaomi.
The latest funding is expected to support further product development and market expansion, including into Singapore, after milestones in Vietnam and Thailand.
Tokio Marine’s investment underscores the growing involvement of Japanese financial institutions in Indonesia’s fintech and insurtech sectors, part of Southeast Asia’s largest digital economy.
In 2023, MUFG and its subsidiaries launched the US$100 million MUFG Innovation Garuda No. 1 Limited Investment Partnership, which has backed Indonesian players such as Qoala and OY!.
Japanese investors remain optimistic about Indonesia’s fintech prospects, citing the country’s youthful population and rapid digital adoption.
This sentiment was reinforced at the World Expo 2025 Business Forum in Osaka, where Indonesian officials highlighted opportunities across digital economy, fintech, and insurance.
Japanese insurers like Tokio Marine are increasingly leveraging their expertise and capital to partner with Indonesian start-ups, seeking to address the country’s underpenetrated insurance market.
The deal comes amid cautious but sustained interest in insurtech across Southeast Asia, where penetration rates in health and general insurance remain among the lowest globally.
Digital-first providers continue to attract funding, supported by rising financial literacy, growing smartphone adoption, and a strengthening middle class.
Featured image credit: Edited by Fintech News Indonesia, based on image by lovelyday12 via Freepik
