Through the Garuda Fund, Danamon-MUIP Collaborates with Qoala to Strengthen Financial Inclusion in Indonesia

Press Release / 03 April 2024

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Jakarta, 3 April 2024 – PT Bank Danamon Indonesia Tbk (Danamon) together with MUFG Innovation Partners Co. Ltd (MUIP), has established a strategic partnership to strengthen Financial Inclusion in Indonesia. This partnership was realized by placing an investment in Qoala, an insurtech startup company, through MUFG Innovation Garuda No. 1 Limited Investment Partnership (Garuda Fund).

Garuda Fund, which is a collaboration between MUFG, MUIP and Danamon, has allocated total fund of USD 100 million for the 2023-2028 investment period. Garuda Fund's investment focus is on series A stage startups and above, with an average investment of USD 5 million, with the strategic aim of increasing Danamon's collaborative business with digital and fintech players in Indonesia. 

The collaboration between Danamon-MUIP and Qoala, began with funding from Danamon-MUIP to complete Qoala's Series C funding round, which was previously led by PayPal and MassMutual Ventures. Danamon-MUIP's funding to Qoala is based on the same vision and mission in realizing financial inclusion for the Indonesian people. Qoala, as an insurtech company, provides insurance solutions that are easy to access through an integrated digital platform, machine learning technology and digital workflows.

President and CEO of MUIP, Nobutake Suzuki said, “Insurance penetration in Indonesia is still low even compared with regional markets. We appreciate Qoala’s omni-channel approach to promote insurance, which is well-suited to enhancing insurance access in the under-penetrated market.  We look forward to future initiatives from Qoala that include both technology and insurance product development to further enhance consumer experience. We also hope that Qoala can strengthen its collaboration with MUFG’s partner bank in Indonesia, which is Danamon, to enhance financial inclusion and insurance penetration in the market.” 

Ivan Jaya, Consumer Funding & Wealth Business Head of Danamon, said that in the midst of private investment conditions which fall by more than 85% in 2023, Danamon together with MUFG and MUIP are continuing to strive to support startups by becoming local and global financial partners that provide various financial solutions and easy access to banking products that can be tailored to customer needs, including startups. 

"Through this initiative, we hope 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, especially for mass affluent/optimal customers who already have future financial plans such as young professionals or customers who are new/already married which in the end is expected 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 need and goal. Regarding investment from the Garuda Fund, we are targeting to invest in 15 startups until 2028," said Ivan. 
 
Tommy Martin, Deputy CEO and Co-Founder of Qoala, 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 our mission of encouraging financial inclusion through the development of innovative technology. This is the first step in the collaboration between Qoala, Danamon and MUIP. We hope that in the future we can provide financial solutions for the Indonesian people," said Tommy.

Through the Series C funding round, Qoala is ready to deliver technology innovation, including integrating artificial intelligence (AI) into various channels, and improving the quality of customer, agent and partner experience.

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