The Southeast Asia InsurTech market experienced a dramatic 61% decline in funding in 2024, according to the Tracxn Geo Annual Report. Funding plummeted from $495m in 2023 to $193m in 2024, reflecting a global trend of reduced investment due to macroeconomic uncertainties, higher inflation, and increased interest rates.
The report highlights that Singapore led the region in funding, securing $135m, whilst Jakarta and Kuala Lumpur followed with $50.5m and $1.2m, respectively. Insurance IT, Internet-First Insurance Platforms, and Employer Insurance were the top-funded segments, though all saw significant reductions compared to previous years.
Despite the downturn, the second half of 2024 (H2) showed a 35% increase in funding compared to the first half, raising $111m. This period accounted for nearly half of the year’s total funding, indicating potential recovery. Notably, Bolttech’s $100m Series C funding round was the largest of the year.
Acquisition activity also slowed, with only one acquisition in 2024 compared to five in 2023. Roojai’s acquisition of Lifepal was the sole transaction. The absence of new unicorns mirrored the previous year’s trend.
Key investors such as Wavemaker Partners, East Ventures, and Openspace Ventures remained active, with Y Combinator, Bee Next, and Appworks leading seed-stage investments. Despite challenges, Southeast Asia’s resilience and government support offer optimism for future growth in the InsurTech sector.
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