Homegrown insurance tech (insurtech) startup Ouch! has efficiently bagged RM5 million in its latest pre-series A fundraising spherical from PPB Ventures.
Based in 2018, Ouch! is a one-stop platform and app to teach customers about their protection/dangers, buy and handle digital insurance merchandise, and make claims. The startup launched its first takaful product, Pusara Professional, final 12 months.
On prime of the contemporary funds, Ouch! has additionally acquired an extra one-year extension to function below Financial institution Negara Malaysia’s (BNM) Regulatory Sandbox. It will strengthen the startup’s aim to offer accessible takaful options.
This aim aligns with developments exhibiting that Malaysia’s takaful market has been rising considerably. Particularly, the Malaysian Takaful Affiliation reported a 7.55% enhance in Household Takaful gross contributions from 2022 to 2023. That meant whole contributions reached nearly RM9 billion.
And Ouch! is assembly that rising demand for accessible, Shariah-compliant monetary safety.
Buying the DITO license
The RM5 million funding will primarily go in the direction of enhancing the startup’s know-how infrastructure, increasing their market presence extra quickly, and persevering with operation within the BNM sandbox.
Ouch! has been a participant of the BNM Regulatory Sandbox since 2021.
“Raising this round will also allow us more time to continue understanding and meeting customers’ needs in Malaysia in preparation for DITO,” CEO Shazy Noorazman informed Vulcan Submit.
He’s referring to the DITO licence from BNM, with DITO standing for Digital Insurers and Takaful Operators. In line with the press launch, this licence will allow Ouch! to shut essential safety gaps for Malaysians, particularly younger households.
Creating a proprietary system
Apart from the licence, the contemporary funds may even go in the direction of growing a proprietary core system to switch third-party options.
“This shift will give us greater control over our platform, improve efficiency, and allow us to offer a more seamless user experience,” Shazy stated. “The cost efficiencies translated from these initiatives will enable us to provide more affordable and accessible takaful protection to our customers.”
This method will embody a number of key parts:
A certificates administration system to effectively certificates and documentation.
Product administration options to permit the startup to quickly develop and customise takaful merchandise to fulfill evolving buyer calls for.
Billing administration programs to streamline the billing course of for better accuracy and comfort.
A rewards and factors system to implement a loyalty program for purchasers.
“Our strategy involves hiring the best local talent to simplify complex problems inherent to Malaysians,” Shazy stated about these targets.
“Essentially, our company is built by Malaysians for Malaysians, with the ambition to help more people understand and afford takaful protection.”
Serving the underserved
Ouch! goals to ascertain a safe, digital platform to fulfill the wants of each Malaysian, contemplating roughly 30 million Malaysians are nonetheless underserved by way of monetary safety.
However how are they in a position to even attain this underserved neighborhood?
Shazy shared that Ouch! utilises social media and internet advertising to fulfill them the place they spend most of their time. The platform can be designed to be intuitive to make sure accessibility.
The startup additionally collaborates with family-centric organisations, charities, and occasions to extend visibility and credibility inside the neighborhood.
At present, there are over 16k present registered customers on the Ouch! platform.
Ouch! will proceed to construct on its development, with plans to provoke their subsequent fundraising spherical later this 12 months to fulfill the minimal capital necessities for the DITO licence.
With the rising demand for takaful options, gamers except for Ouch! may even goal to faucet into the market.
“Competition is ultimately beneficial for Malaysians, and we welcome more parties to join us in making takaful more accessible and attractive,” Shazy stated.
“We believe that takaful hibah should be an essential aspect of responsible financial planning. Thus, our focus remains on providing affordable, accessible, and user-friendly takaful solutions to meet the needs of our customers.”
Be taught extra about Ouch! right here.
Learn different articles we’ve written about Malaysian startups right here.
Featured Picture Credit score: Ouch!
