Hangzhou-based startup Duobaoyu Insurance has closed its Series B round, bagging RMB 200 million (USD 28.2 million), 36Kr reported on Tuesday.
Yunfeng Capital, co-founded by Alibaba’s founder and former chairman Jack Ma, led this round, while US-listed online consumer finance marketplace PPDAI Group also joined. Earlier investors, including Bertelsmann Asia Investments, Lightspeed China Partners, and ZhenFund all participated in this new round.
The fresh funds will be used to upgrade technology, improve user experience and build a closed-loop model from consultation to purchasing.
Duobaoyu, which was set up in 2017, offers insurance advice to consumers. Its clients are mainly aged between 25 and 40 years old. The firm has gained more than 4 million followers on its WeChat public account, ByteDance’s Douyin short video app, social commerce platform Little Red Book, social media platform Weibo and short video app Kuaishou, by sharing information about various insurance plans such as the critical illness assurance.
The firm also offers one-on-one online consultation services and insurance-buying tools. The company holds an insurance broking license in China and by January, premiums paid by Duobaoyu users had exceeded RMB 500 million (USD 71 million).
Ping Yi, managing director of Yunfeng Capital, said that the penetration rate of online long-term insurance in China is currently less than 2%, so there is a great potential for future improvement.
Duobaoyu has lowered the cognitive barrier for individuals to make a decision on whether and how to buy a suitable insurance policy, Ping added.
As the internet is transforming China’s insurance market, which is far from being saturated, the insurtech sector is attracting venture capital funds.
Duobaoyu’s rival Xiaobangguihua also raised RMB 200 million in its Series B round last month, led by Tencent.
Correction: An earlier version of the story incorrectly stated Duobaoyu raised USD 282 million, it should be USD 28.2 million.