Southeast Asian insurtech platform Qoala reported a 36% reduction in net losses for 2023, according to its latest regulatory filings accessed by DealStreetAsia.

The Indonesia-based company recorded a net loss of US$14.3 million for the year ending 31 December 2023.

Qoala, which provides various insurance products, including health, life, and travel coverage, saw its revenue more than double in 2023, increasing by 144.5% to reach nearly US$18 million.

This financial performance reflects the operations of its Singapore-registered parent company, with contributions from subsidiaries in Malaysia, Vietnam, Indonesia, the Philippines, and Thailand.

The bulk of the company’s revenue came from Thailand, contributing 56.1% or US$10.1 million, after Qoala gained full control over Fairdee Insurance Broker and Fairdee Insurtech.

In 2022, Qoala had only a partial stake in these companies, contributing a share of profit/loss of US$1.5 million.

Indonesia, which had previously been the company’s largest market, accounted for 41.2% of revenue in 2023.

On the cost side, Qoala took measures to reduce overall expenses by 9%.

General and administrative expenses, including employee benefits, dropped by 7% to US$16.7 million, while employee benefits alone decreased by 11% to US$10.3 million.

The company’s layoffs in July 2023, which affected around 80 employees in Indonesia and Malaysia, contributed to these reductions.

Sales and marketing costs were also reduced, down 10.6% to US$6.9 million.

Speaking on the company’s financial outlook, Qoala’s CEO, Harshet Lunani, noted that around half of the company’s portfolio is already profitable, while the remaining segments are in the investment phase with positive expectations for future profitability.

Despite the reduction in losses, Qoala’s operating cash flow remained negative at US$19.9 million, though this was an improvement from US$29.2 million the previous year.

The company raised US$45.2 million from financing activities and generated US$1.5 million from investing activities, increasing its cash reserves by 85% to US$58.4 million by the end of 2023.

Qoala has secured over US$130 million in funding from investors, including PayPal Ventures, Eurazeo, and Peak XV Partners.

In 2023, it closed a US$47 million in a Series C funding round, led by PayPal Ventures and MassMutual Ventures.

To support its regional expansion, Qoala added two new executives to its leadership team in August.

Randy Lianggara, former regional CEO for Asia at AVIVA, and Yujun Chean, co-founder of FairDee, joined the company’s board. Chean has also taken on the role of chief operating officer.

Featured image credit: Edited from Freepik

The article first appeared on Fintech News Singapore