Bowtie, a Hong Kong-based virtual insurer, has announced the successful completion of a $34.9 million Series B2 funding round.

Bowtie said in a statement on Thursday that the round was led by main investor Sun Life Hong Kong Limited, with further participation by Mitsui & Co., Ltd.

It said that this investment reaffirmed their confidence in Bowtie’s long-term development, given its proven traction in changing how customers access health insurance.

With the new funding, Bowtie said it is poised to further expand its operations and technologies to fill Hong Kong’s $886 billion protection gap.

It said the firm aims to accelerate product innovation and vertical integration with healthcare providers to create differentiations that fundamentally change the customer experience.

According to the statement, Bowtie’s exponential growth has led to the overall expansion of the online channel, contributing to a threefold increase in the direct channel market share of the insurance industry from 2.9 percent to 8.5 percent.

With a market share of around 30 percent in the direct sales channel, Bowtie once again ranked number one for the first half of 2023 in Hong Kong’s direct channel, a position held for two consecutive years.

It said the firm’s growth is driven by its competitive digital insurance and health offerings.

It said that this is a testament to the fact that digital insurance companies are able to offer the best combination of price, convenience, and service quality to customers.

“With annual recurring revenue of $25 million and over 100,000 customers, we have demonstrated solid fundamentals in growth, brand, and customer value,

“In today’s competitive business environment, investors not only seek top-line growth from startups but also a clear path to profitability, which makes our achievements even more precious,” said Michael Chan, Co-Founder and Co-Chief Executive Officer of Bowtie.

In addition to the core voluntary health insurance scheme (VHIS) products, Bowtie said its growth is further supported by repeated purchases from existing customers.

It said the firm’s critical illness products has experienced a remarkable growth rate of over 100 percent in the past year.

During the same period, Bowtie has also achieved a significant milestone in group medical insurance and wellness solutions, serving more than 500 small and medium-sized enterprises and technology-embracing companies across various industries, including fintech, telecommunications, and airlines.

Sun Life Hong Kong Limited, an early investor in Bowtie which led this Series B2 funding round, commended the company’s ground-breaking business model.

They acknowledged that Bowtie’s successful growth proved the unlimited potential of virtual insurance.

“Bowtie has challenged the myth of ‘insurance is sold, not bought’ which was previously unimaginable. We take great pride in our support of Bowtie as they pioneer a new category of health insurer,

“Together, we are dedicated to making insurance more affordable and accessible to all,” said Clement Lam, Chief Executive Officer at Sun Life Hong Kong Limited.

Mitsui & Co., Ltd. also recognized Bowtie’s efforts in building a modern clinic and launching products in collaboration with new hospitals and wellness partners to provide preventive care.

“Bowtie’s innovative initiatives have the potential to reshape the insurance landscape,

“Their approach aligns incentives and breaks down complexities between insurers and healthcare providers, marking a crucial step in developing a value-based healthcare ecosystem, which is why Mitsui is keen to invest,” said Tomoya Shishido, Chief Executive Officer at Hong Kong Branch of MBK Healthcare Management.

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