IFC invests $7m in Roojai
IFC, a member of the World Bank Group, has announced a US$7 million (228 million baht) Series A investment in Roojai Co Ltd, an online car insurance platform in Thailand, with an aim at improving consumers’ access to insurance products.
The sister organisation of the World Bank joins Primary Group — a privately owned investment holding company with expertise in the global insurance tech sector — as a shareholder in Roojai. IFC will work with Roojai to strengthen its corporate governance and support the company through its board nominees and IFC’s industry team.
The Series A funds will allow Roojai to accelerate its investment in digital marketing and continue its efforts in developing policies with Krungthai Panich Insurance, said IFC’s statement. The move will further help the company develop technological systems that improve the quality of customer interactions and lower barriers to insurance access.
Almost two-thirds of Thailand’s population has access to the internet, yet the market is still reliant on face-to-face interactions with brokers or auto dealers. The use of digital channels to purchase insurance is still in its nascent stage.
In less than three years of operation, Roojai has reached over 30,000 auto insurance customers through a digital-first distribution strategy, gaining widespread industry recognition.
“We’re delighted to welcome IFC as one of our shareholders as we enter a new exciting phase of growth. We aim to improve financial inclusion through accessible, cheaper, and essential cover for all responsible consumers,” said Nicolas Faquet, chief executive and founder of Roojai.
“Thailand’s digital insurance channels have significant room for expansion, especially from digital-first players who can effectively implement the digital-direct model by leveraging the latest technologies. Our partnership with Roojai aligns with the government’s effort to support inclusive insurance through the Office of Insurance Commission’s insurtech initiative,” said Paulo de Bolle, IFC’s global director of the financial institutions group.
Since 2000, IFC has invested in 42 insurance companies for almost $2 billion. Its portfolio includes reinsurance, life, nonlife, micro-insurance and insurtech.