OneDegree Group receives inaugural venture debt financing from HSBC, bolstering international growth plan with the support of HSBC as strategic partner

Hong Kong, 6 July, 2023 – OneDegree Group, a leading InsurTech company, today announced that the Group has closed its first venture debt financing transaction with HSBC. The facility is provided under the HSBC New Economy Fund, which is earmarked to support early-stage, high-growth, tech-led businesses and stimulate growth in the innovation economy. The ticket size for venture debt solutions under the Fund starts from US$10 million for companies at Series B stage and beyond.

OneDegree Group has demonstrated the strength of its tech-led business model, coupled with an impressive ability to generate recurring revenue growth and expand internationally. This showcases that the Group is on a robust trajectory towards profitability, underpinned by sustainable growth strategies that promise long-term value.

The unique design of the transaction structure is a win-win for both parties, including equity warrants which signifies continuity of the relationship between OneDegree Group and HSBC. With this venture debt, the Group has bolstered its capability to accelerate the expansion of its InsurTech and cybersecurity SaaS business and digital asset insurance business internationally and will leverage the global footprint of HSBC as its strategic partner.

“We are delighted to have HSBC as our strategic partner and to be their very first venture debt transaction booked in Asia,” says Alvin Kwock, Co-Founder and CEO of OneDegree Group. “As OneDegree is rapidly reaching scale and on a clear path to profitability, we look for flexible ways to support our business growth, while at the same time reducing our cost of capital and optimizing our capital structure. During our discussion, we found that the HSBC team has strong capability, they really understand our business and are committed to supporting our growth across multiple geographies.”

Frank Fang, General Manager, Head of Commercial Banking, Hong Kong & Macau, HSBC, said: “We are pleased to arrange the inaugural venture debt facility of OneDegree Group, a homegrown fintech startup in Hong Kong, as part of their Series B fundraising round to supercharge their next phase of growth. The bespoke facility structure, which features equity warrants and a borrowing base concept, is tailored to the business needs of this fast-growing digital insurer. Provided from our newly-launched New Economy Fund, the facility also represents HSBC’s first venture debt transaction booked in Asia as we continue to step up our support for innovation economy companies in their shift from start-up to scale-up.”