Fatfish Group (ASX: FFG) has revealed its insurance technology subsidiary Fatberry expanded its revenue by 6,800% over eight months – making it Fatfish’s fastest growing investee in revenue terms.
To boost this growth further, Fatberry has raised $800,000 via a pre-series A funding round.
Fatfish participated in the funding round – contributing a direct $285,000, while its other subsidiary Abelco Investment Group put in $329,000.
The direct and indirect contributions expand Fatfish’s ownership in Fatberry from 53.3% to 61%.
Fatfish noted both Abelco and itself had funded the investment from their respective working capital pools.
Fatberry chief executive officer John Tan said the proceeds from the funding round will enable the company to continue making it “as easy as possible” for customers to purchase insurance via its platform.
Meanwhile, Fatfish chief executive officer Kin Lau said consumers will continue preferring to purchase insurance via digital platforms.
“It is an unstoppable macro-trend.”
“We are excited about the prospect of Fatberry, and we can see lots of synergies between Fatberry’s insurance platform and our buy now pay later business,” Mr Lau added.
Fatberry’s growth strategy
Fatberry is based in South East Asia and offers vehicle insurance via its insurtech platform, which had a full commercial launch into the Malaysian market during April 2020.
Fatfish says Fatberry has “transformed” the way people purchase insurance products in Malaysia.
Between June 2020 and February 2021, Fatberry’s platform growth averaged more than 100% month-on-month.
This drove monthly revenue for the same period up 6,800% to reach a monthly figure of $175,000.
According to Fatfish, this growth momentum is expected to continue over the next 24 months.
Fatfish noted Fatberry was currently its fastest growing investee in terms of revenue.
As part of Fatberry’s ongoing growth, it has launched insurance for two-wheel motorcycles, with more insurance products also in the pipeline.
It is estimated Malaysia’s combined vehicle and motorcycle insurance market was worth $2.67 billion in 2020.