Gearing Towards Major Profits: The Thriving Journey of Online Insurance Firm, Roojai
Reaping the fruits of its labors, the online insurance firm Roojai is looking forward to surfacing its maiden profit from Thai operations in the fiscal year ending in March 2024, as confirmed by the founder and Chief Executive Officer, Nicolas Faquet. The soon-to-be-realized financial boon is chiefly due to the impressive and exponential growth of the company in the motor insurance sales sector, as it sharpens its focus to secure a top spot in this segment by the forthcoming year.
In a recent discussion, Faquet remarked that the company had been through turbulent times but emphasized the bright, optimistic future under the spotlight. He admitted, “In the shadow of Covid-19, we did face a few hurdles in the past two years, but we are currently witnessing an escalating dynamic in the motor insurance market. The imminent future is hopeful and promising.”
Riding on the wave of success, Roojai announced the addition of 149,248 new members at the end of the fiscal year in March 2022, showcasing an upswing of 15% compared to the previous year. Despite these remarkable numbers, Faquet confessed that this rate was slightly slower than the past years’ growth.
The insurance firm saw an insurance premiums amounting to a whopping 133 billion baht during the same period, marking a 20% increase from the previous year. Predominantly, motor insurance accounted for 95% of the premiums, and the remaining comprised accidental and health products.
In a strategic business move, Roojai took over FWD General Insurance (FWD GI) in July, for an undisclosed sum. This monumental transaction has augmented the company’s product line in Thailand, taking its joint yearly premiums to over US$50 million (equaling 1.8 billion baht).
Faquet emphasized that the acquisition enabled Roojai to metamorphose into a comprehensive insurtech company, thereby owning a license to underwrite its individual general insurance products. This forward leap also unlocked novel distribution channels including brokers and agents, as reported by the Bangkok Post.
By capitalizing more on traditional distribution methods, Roojai endeavors to acquire new customers from regions beyond Bangkok, Chiang Mai, Chon Buri, and Phuket. Currently, these major markets contribute to about 70% of the total sales. On the other hand, revenue from other provinces make up 30% of the sales.
Aiming for broader ambitions, Roojai plots to unveil new offerings over and above motor insurance and personal accident coverage. This includes telematics and home insurance in the next year, and personal medical insurance plus coverage for small-sized and medium-sized enterprises set to launch in 2025.
Faquet hinted towards an anticipated 40% growth at the end of fiscal 2024. He also confirmed that the Series B fundraising amounted to US$42 million (1.5 billion baht) in March, which was channelled towards organic expansion for Roojai Indonesia, the FWD GI acquisition, and exploring new opportunities in four other Southeast Asian markets and Taiwan.
Roojai seizes the vision of ranking among the top 10 Thai motor insurers by the next fiscal year, and aims to pave its way into the top three within a five-year span. Although it has ambitious plans, Faquet did reveal an openness towards looking at raising Series C funding. This is mainly because it generally takes a minimum of five years to start profiting in Indonesia, and Roojai is contemplating acquisitions for quicker market penetration.
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