OneDegree Group closes US$55 million Series B round, strengthening its push into digital assets insurance and generative AI-enabled insurtech solutions
Hong Kong and Singapore, 29 June 2023 – OneDegree Group today announced that it has closed additional funding, taking its Series B round to US$55 million, on the back of strong revenue growth across all business units and market-leading innovations in digital assets insurance and generative AI-enabled insurtech solutions.
The new funding will be used to expand OneDegree Group’s digital assets insurance business and insurtech offerings globally as well as to broaden the product offering and deepen the market penetration of its direct-to-consumer insurance products.
"Our continued investment in OneDegree Group underscores our confidence in their robust team, sustainable operations, and relentless innovation," said Thomas G. Tsao, Co-founder of Gobi Partners. "Their expanding presence across Asian markets and beyond signifies the vast potential of their pioneering insurance solutions, promising a bright, global future."
Strong financial performance signalling clear path to profitability
OneDegree Group has delivered solid revenue growth in the past 2 years, with monthly revenue rising by 4x, led by strong organic growth of direct-to-consumer products, from pet, fire and home to medical insurance. At the same time, the portfolio’s loss ratio improved significantly by around 40%, attributable to data analytics capability that drives precision pricing and fraud detection. With strong recurring revenue, reduced customer acquisition costs and a significantly lower loss ratio, OneDegree Group is rapidly reaching scale and signals a clear path to achieving profitability by the end of 2024.
“We have successfully achieved product market fit, which is testament to the team’s relentless focus on delivering customer-centric products. We have also demonstrated the scalability of our technology-driven business model, as reflected in our operational and financial metrics,” said Alvin Kwock, Co-founder and CEO of OneDegree Group. “It is a real seal of approval to receive such strong backing from the market during this challenging fundraising environment. We’re delighted to welcome new investors and strategic partners in this latest closing, alongside our three largest existing institutional investors who also participated.”
Market-leading innovation in digital assets insurance and generative AI-enabled insurtech solutions
OneDegree Group has captured strong business traction in its digital assets insurance since its full launch in April 2022, leveraging its synergistic expertise in insurance, cybersecurity and Web3 risk assessment. OneInfinity, OneDegree Group’s digital assets insurance business, is the first direct insurer for digital assets in Asia, supported by strong global reinsurance partners. It has pioneering capability in assessing risks of virtual asset service providers’ operations across wallet theft, cybersecurity hacks, fraud, third-party crime and corporate liability. Within the past 14 months, OneInfinity already has proven track record in protecting over a dozen virtual asset exchanges, custodians and asset managers, with over 100 requests for coverage, on the back of increasing demand driven by digital asset regulations globally.
OneDegree Group has continued to develop and upgrade its market-leading technology, which is productized into IXT insurtech and Cymetrics cybersecurity SaaS solutions, with a client base ranging from traditional insurers and intermediaries to new digital insurers across Asia. OneDegree Global, OneDegree Group’s technology subsidiary, has recently joined forces with Microsoft to integrate Azure OpenAI into its IXT Seeble and Cymetrics Copilot solutions. These pioneering generative AI-enabled solutions for the insurance industry streamline complex insurance processes and enhance customer interaction and cybersecurity management.
"We are incredibly proud of the strides we have made in a short span of time," said Alex Leung, Co-founder of OneDegree Group. "Our strong growth in the digital assets insurance space reflects the industry's trust in our pioneering capabilities and expertise. With the integration of Microsoft’s Azure OpenAI into our IXT and Cymetrics solutions, we are not just staying ahead of the curve but shaping the future of the insurance industry. Through relentless innovation and collaboration with global partners, we remain dedicated to empowering both traditional and digital insurers and contributing positively to the insurance ecosystem."