AMTD Digital, the digital finance arm of Hong Kong-based AMTD Group, announced that it will acquire a controlling stake in PolicyPal, an insurtech company with a digital insurance broker license from the Monetary Authority of Singapore (MAS).
The deal, valued at more than US$20 million, is yet to be approved by MAS, PolicyPal founder and CEO Val Yap told Tech in Asia.
After the deal closes, AMTD Digital will have a 51% stake in PolicyPal, a mix of cash and equity, Yap said. Yap will continue to lead PolicyPal as CEO.
The startup will also become a member company under AMTD Digital, acting as its operating vehicle to develop and expand in the Southeast Asian insurtech sector, the announcement said. PolicyPal will also collaborate with AMTD’s insurance brokerage company, AMTD Risk Solution, to promote online insurance services and risk management experience.
Launched in 2016, PolicyPal helps consumers to understand their insurance needs and provides them with financial planning solutions. It’s supported by 500 Startups, PayPal, and angel investor Koh Boon Hwee. With the acquisition, PolicyPal looks to ride on AMTD’s operating licenses in Hong Kong to expand into North Asia, Yap said.
AMTD Digital, meanwhile, has been working towards building a one-stop, cross-market digital financial services platform for Asian consumers and small and medium-sized enterprises. It wants to integrate digital banking, digital insurance, digital asset exchange, e-payment or remittance, and other licensed businesses in Hong Kong and Southeast Asia, according to the statement.
Last year, AMTD Group, together with Chinese electronics company Xiaomi, established Airstar Bank and obtained a virtual banking license from the Hong Kong Monetary Authority. It has also teamed up with SP Group, Xiaomi, and Funding Societies to jointly apply for the Singapore digital wholesale banking license.
AMTD Group said Singapore, which serves as the company’s regional headquarters, is an important hub for Southeast Asia’s fintech space. The deal with PolicyPal marks an important milestone for AMTD as it further invests in the city-state and the region’s fintech industry, the statement said.