Cool Japan Fund led a US$21 million funding round for Malaysia’s insurance technology firm PolicyStreet, with almost half the capital coming from the Japanese sovereign wealth fund.
Other participants included PolicyStreet’s existing investors Altara Ventures, a venture capital firm from Singapore, and Gobi Partners, a Malaysian venture capital firm, the insurtech company says in a statement on April 1.
Yen Ming Lee, the firm’s co-founder and group chief executive officer, says the Japanese wealth fund’s investment “reflects growing confidence in the role of embedded insurance within Asia’s digital economy”.
Cool Japan Fund disclosed in a separate statement that it will put in $12 million of the $21 million into PolicyStreet.
According to the wealth fund, the Southeast Asian digital commerce ecosystem continues to grow and product-linked financial services such as extended warranty and insurance coverage are becoming critical components of consumer trust.
“Through this investment, Cool Japan Fund aims to strengthen the integration of insurance solutions within the digital sale and distribution of highly functional Japanese products in Malaysia-focused Southeast Asia,” it says.
Malaysia sovereign wealth fund Khazanah Nasional also invested in PolicyStreet in 2023. The sum was not disclosed.
