Bank Danamon And MUIP Establish Partnerships To Invest In Qoala Startups

Illustration. (Photo: Doc. Antara)

JAKARTA - PT Bank Danamon Indonesia Tbk (Danamon) and MUFG Innovation Partners Co Ltd (MUIP) have established a strategic partnership to strengthen financial inclusion in Indonesia.

This partnership is realized through investment placement in Qoala, startup Insurance Technology (insurtech), through MUFG Innovation Garuda No. 1 Limited Investment Partnership (Garuda Fund).

Garuda Fund, a collaboration between MUFG, MUIP, and Danamon, has allocated a total of 100 million US dollars for the investment period 2023-2028. Garuda Fund's investment focus is on starting the A series stage and above, with an average investment of 5 million US dollars with a strategic goal of improving Danamon's collaboration business with digital and fintech actors (financial technology) in Indonesia," explained the official statement, quoted from Antara, Thursday, April 4.

The collaboration between Danamon-MUIP and Qoala begins with funding from Danamon-MUIP to complement Qoala's Series C funding round previously led by PayPal and MassMutual Ventures.

Funding for Danamon-MUIP to Qoala is based on the common vision and mission in realizing financial inclusion for the people of Indonesia.

Qoala, as an insurtech company, is said to provide insurance solutions that are easily accessible through integrated digital platforms, machine learning technology, and digital workflows.

According to MUIP President and CEO Nobutake Suzuki, insurance penetration in Indonesia is still quite low, even when compared to the regional market.

He appreciates Qoala's omni-channel approach to marketing insurance, because it is very suitable to increase access to markets that have not been touched by insurance products.

We look forward to the initiative from Qoala, both development that includes the technology side and insurance products, in order to continue to improve consumer experience. We also hope that Qoala can continue to strengthen collaboration with the bank partner of MUFG in Indonesia, namely Danamon, to increase financial inclusion and penetration of insurance in the market," said Nobutake.

Consumer Funding & Wealth Business Head Danamon Ivan Jaya added that Danamon together with MUFG and MUIP continue to strive to support startup players to become local and global financial partners in the midst of private funding conditions which fell by more than 85 percent in 2023.

The forms of support provided are various financial solutions and convenience for access to banking products that can be adjusted to customer needs, including startups.

Through this initiative, his party hopes to be a real solution in providing banking products, one of which is insurance products that are more easily accessible digitally through the Qoala application.

Customers who already have future financial plans, such as young professionals or new / married customers, are expected to be able to encourage Indonesia's economic growth.

"This is in line with Danamon's commitment to grow with our customers or partners and be present at every stage of life through our financial solutions, and help them take control of their every financial needs and objectives. Regarding investment from the Garuda Fund, we are targeting to invest in 15 startups by 2028," said Ivan.

Deputy CEO and Co-Founder of Qoala Tommy Martin welcomed the support provided by Danamon and MUIP.

We appreciate the support from Danamon and MUIP through the Garuda Fund. This support helps Qoala's development in realizing its mission to encourage financial inclusion through the development of innovative technology. This is the first step of collaboration between Qoala, Danamon, and MUIP. We hope that in the future we can provide financial solutions for the people of Indonesia," said Tommy.

Through the C series funding round, Qoala is said to be ready to deliver technological innovations, including integrating artificial intelligence into various channels, and improving the quality of customer experience, agents, and partners.