Hong Kong-based insurtech firm OneDegree Group has on Thursday announced that it has closed additional funding, taking its Series B round to $55 million.

OneDegree Group said in a statement that it secured the funding on the back of strong revenue growth across all business units and market-leading innovations in digital assets insurance and generative artificial intelligence (AI)-enabled insurtech solutions.

It said 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.

“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 Chief Executive Officer 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,” he added.

It is also noted that 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, its 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 software as a service (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 artificial intelligence (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,

“Our strong growth in the digital assets insurance space reflects the industry’s trust in our pioneering capabilities and expertise,” said Alex Leung, Co-Founder of OneDegree Group.

With the integration of Microsoft’s Azure OpenAI into the firm’s IXT and Cymetrics solutions, he said the firm is 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,” he added.

According to the statement, OneDegree Group has delivered solid revenue growth in the past two years, with monthly revenue rising by four times, 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 percent, 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 said it is rapidly reaching scale and signals a clear path to achieving profitability by the end of 2024.

“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,” he added.

OneDegree Group is a InsurTech company, established in 2016. The firm leverages cutting-edge technology, cybersecurity and digital assets expertise to transform insurance.

The firm operates several businesses in Asia and globally.

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