Southeast Asia insurtech platform quora The company reported a 36% decline in net loss in 2023, according to the latest regulatory filings accessed by. deal street asia.
The Indonesia-based company recorded a net loss of USD 14.3 million for the year ended December 31, 2023.
Qoala, which offers a variety of insurance products including health, life and travel coverage, more than doubled its revenue in 2023, increasing by 144.5% to nearly US$18 million.
This financial performance reflects the operations of the Singapore-registered parent company, including contributions from its subsidiaries in Malaysia, Vietnam, Indonesia, the Philippines and Thailand.
After Qoala acquired full control of Fairdee Insurance Broker and Fairdee Insurtech, the majority of the company’s revenue came from Thailand, contributing 56.1% or US$10.1 million.
In 2022, Qoala only held a fraction of the shares in these companies, contributing to profit and loss of US$1.5 million.
Indonesia, previously the company’s largest market, accounted for 41.2% of sales in 2023.
On the cost front, Qoala took steps to reduce overall expenses by 9%.
General and administrative expenses, including employee benefits, decreased 7% to USD 16.7 million, and employee benefits alone decreased 11% to USD 10.3 million.
The company’s layoffs in July 2023, which affected approximately 80 employees in Indonesia and Malaysia, contributed to these reductions.
Sales and marketing expenses were also reduced, down 10.6% to US$6.9 million.
Commenting on the company’s financial outlook, Qoala CEO Harshet Lunani said that about half of the company’s portfolio is already profitable, while the remaining segments are in the investment stage and are expected to be profitable in the future.
Despite the lower loss, Qoala’s operating cash flow remained negative at US$19.9 million, but improved from US$29.2 million a year earlier.
The company raised US$45.2 million in financing activities and generated US$1.5 million in investment activities, increasing cash on hand by 85% to US$58.4 million by the end of 2023.
Qoala has secured over $130 million in funding from investors including PayPal Ventures, Eurazeo, and Peak XV Partners.
Closed in 2023. US$47 million in Series C funding roundled 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 Asia CEO of AVIVA, and Yujun Chean, co-founder of FairDee, have joined the company’s board of directors. Mr. Chen also became chief operating officer.
Featured image credit: Edited from freepic
