by AZALEA AZUAR / Pic Source: Oyen.my
OYEN Sdn Bhd, Malaysia’s digital-first pet healthcare insurance provider, has raised US$420,000 (RM1.74 million) in a seed round.
The first fully integrated digital pet healthcare platform in South-East Asia has attracted backers, including venture capital firm Hustle Fund and angel investors of former and current executives from Airbnb Inc, Facebook Inc and Rocket Internet SE.
“The number of people who have pets for companionship has increased during one of the world’s biggest recent crises, and our platform is specifically designed to alleviate concerns by pet owners — especially new ones — when managing their pets’ medical needs.
“With the support from our investors, Oyen is now better positioned to expand and enhance its services across Malaysia, while also exploring how we can extend the benefits of our platform to pet owners at the regional level,” Oyen founder and CEO Kevin Hoong said in a statement recently.
The company said it would use the capital to improve its proprietary digital insurance platform and reinforce its market position within Malaysia’s pet healthcare insurance ecosystem.
It is aggressively recruiting various roles in technology such as software engineering and non-technology such as growth marketing.
These efforts would jump-start Oyen to offer more holistic pet healthcare services such as vet medical protection, preventative care and wellness.
Oyen aims to help pet owners manage their pets’ medical needs via seamless insurance purchase and claims experience.
Oyen integrates its service with a panel of veterinary clinic partners in Malaysia.
It aspires to become the region’s category leader in pet healthcare insurance, a greenfield market with untapped potential.
The company plans to be the first mover in this space by expanding its pet healthcare network through partnerships with regional insurers and veterinary clinics.
The company targets to have 100,000 pets insured in South-East Asia within the next three years — half is expected to come from the company’s first market, Malaysia.
“We are excited by the growth that Hoong and his team have achieved in Malaysia, and are keen to see the innovations that they will bring to the pet insurance ecosystem — both as an investor and dog lover,” Hustle Fund general partner and co-founder Shiyan Koh said in the same statement.
Asia-Pacific’s pet care market is growing at a 10% compound annual growth rate (CAGR) to US$132 billion by 2027, according to the Graphical Research firm.
The region, including some of South-East Asia’s largest market, sees a nearly 60% rise in pet ownership, escalated by the Covid-19 pandemic, based on a Rakuten Insight survey.
According to a report, pet’s unexpected medical expenses for illness and injury could reach up to RM8,000 annually.
In Malaysia, Oyen could provide the highest veterinary medical coverage with up to RM8,000 of the amount claimable in vet medical fees, up to RM1,000 in pet burial cost and up to RM 50,000 in third-party liability claims.
Meanwhile, Malaysia’s life insurance sector is expected to register a 30% CAGR to reach over US$15 billion by 2025, GlobalData said.
Oyen is also looking to introduce services for other consumer insurance segments, such as home, life and medical insurance.