Malaysian insurtech startup PolicyStreet has announced raising a total of $15.3 million in a Series B funding round anchored by Khazanah Nasional Berhard, which invested through its Dana Impak mandate.

Dana Impak is a RM6 billion allocation over five years and is a key pillar under Khazanah’s Advancing Malaysia strategy, with the aim to increase Malaysia’s economic competitiveness, build national resilience, as well as deliver socioeconomic impact to Malaysians.

PolicyStreet is a full-stack InsurTech company that offers digital and customised insurance solutions to consumers and businesses.

In offering simple, affordable and purposeful insurance solutions, PolicyStreet stands to narrow the protection gap in Malaysia and improve the country’s insurance penetration rate, which at 5.3%, currently lags global peers like Singapore (9.3%) and the Organization for Economic Cooperation and Development (OECD) (9.4%).

Khazanah’s investment in PolicyStreet complements its Future Malaysia Programme which aims to support the local start-up ecosystem of entrepreneurs, start-ups, venture capital and corporate venture programmes through collaboration with domestic and international partners.

The Future Malaysia Programme supports investments into companies with sustainable business models that deliver socioeconomic impact to Malaysia, such as PolicyStreet, which requires the injection of risk capital.

Khazanah’s Managing Director, Dato’ Amirul Feisal Wan Zahir said, “Dana Impak is our commitment for strategic investments to increase Malaysia’s economic competitiveness and build national resilience, while delivering socioeconomic benefits and impact to Malaysians. Our investment in PolicyStreet aims to improve insurance penetration within the unserved and underserved segments which advocates inclusivity, providing better financial protection, increasing household resilience and financial well-being.”

“We will continue to invest in innovative and impactful solution providers that leverage technology and product innovation to serve the nation. This is aligned with our commitment to spur the local start-up ecosystem as part of our strategic imperatives via the Future Malaysia Programme.”