Hong Kong fintech player raises $30m Series A
Hong Kong-based OneDegree, an insurance technology start-up, has raised over $30 million for its Series A led by financial technology-focused investment firm BitRock Capital.
Other participants include Cyberport Macro Fund, an investment vehicle founded by Hong Kong government-backed incubator Cyberport, and Cathay Venture, a wholly owned subsidiary of Cathay Financial Holdings. The total includes a first tranche of HK$100 million ($13 million) that closed last year.
Founded in 2016 by former JP Morgan banker Alvin Kwock, OneDegree provides an app-based platform that allows customers to purchase insurance policies and settle claims online. The company says 80% of the claims can be settled within two days.
The company is in the process of obtaining approval to operate as a digital insurer in Hong Kong under the Insurance Authority’s fast-track scheme launched in September 2017. It expects to have its first product, either pet or human medical insurance, on the market by this year, according to a report by the Hong Kong Trade Development Council.
“Our strategy is not to compete head-on with traditional insurers, but rather to work together, steering the whole industry towards a fully digital ecosystem,” said Kwock in a statement.
The fresh capital will be used to accelerate the development of the company’s end-to-end digital insurance platform, launch new product offerings, and explore growth opportunities including the “Greater Bay Area” initiative, a Chinese government scheme to link the cities in the Guangdong-Hong Kong-Macau area, home to 70 million people.
Recent fundraising activity by Hong Kong fintech start-ups include Qupital, which claims to be the largest online financing platform for small and medium enterprises in the city. The company raised $15 million in March in a Series A led by CreditEase FinTech Investment Fund, with participation from Alibaba Hong Kong Entrepreneurs Fund and MindWorks Ventures.
BitRock, launched last year, backs fintech companies across Asia, the US and Europe. The firm is co-managed by Singapore-based warehouse operator GLP.
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