Oyen, a digital-first pet healthcare insurance provider based in Kuala Lumpur, has raised US$420,000 in a seed funding round. Among its notable backers are Hustle Fund and angel investors who are former and current executives from Airbnb, Facebook, and Rocket Internet.
The company will use the funds to enhance its proprietary digital insurance platform and reinforce its market position within Malaysia’s pet healthcare insurance ecosystem. It plans to expand its recruitment of staff, such as in software engineering and marketing. It also seeks to offer more services such as vet medical protection, preventative care, and wellness.
Founder and chief executive officer Kevin Hoong says: “The number of people who have pets for companionship have increased during one of the world’s biggest recent crises, and our platform was 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.”
According to Oyen, its pet insurance platform is aimed at giving pet owners greater peace of mind in managing their pets’ medical needs via seamless insurance purchase and claims experience. The company’s services are integrated with a panel of veterinary clinic partners in Malaysia, making it easier for owners to access Oyen’s growing network of vets for quality vet services and quickly seeking medical attention for their pets – especially in case of emergencies.
The company aims to have 100,000 pets insured in Southeast Asia within the next three years – half of which is expected to come from the company’s first market, Malaysia.
The pet care market in Asia-Pacific, valued at US$68.1 billion in 2020, is expected to see a 10% CAGR (compound annual growth rate) to reach US$132 billion by 2027, according to data from business research firm Graphical Research.
Nearly 60% of people in the region own a pet at home, and the trend has escalated even further during the Covid-19 pandemic as people look to pets to help them cope with mental stress during the crisis.
This opens up opportunities in the pet healthcare business, mainly insurance, with owners having to deal with their pet’s unexpected medical expenses for illness and injury – which can reach up to 8,000 ringgit (US$1,941) annually.
In Malaysia, Oyen says it is able to provide the country’s highest veterinary medical coverage, with up to 8,000 ringgit of the amount claimable in vet medical fees, up to 1,000 ringgit in pet burial cost, and up to 50,000 ringgit in third-party liability claims.