Bowtie closes US$34.9m series B2 funding to fuel expansion and innovation

Hong Kong’s virtual insurer Bowtie has completed a US$34.9m series B2 funding round to bolster its innovation offering and fuel expansion. The round was led by main investor Sun Life Hong Kong, with further participation by Mitsui & Co.

With the new funding, Bowtie aims to further expand its operations and technologies to fill Hong Kong's US$886 billion protection gap. 

Bowtie also aims to accelerate product innovation and vertical integration with healthcare providers to create differentiations that fundamentally change the customer experience.

“We would like to express our gratitude to investors for their continued trust and support. In today's competitive business environment, investors not only seek top-line growth from startups but also a clear path to profitability, which makes our achievements even more precious,” said Michael Chan, co-founder and co-CEO of Bowtie

This move also reaffirmed the investors’ confidence in Bowtie's long-term development, given its proven traction in changing how customers access health insurance.

Clement Lam, CEO at Sun Life Hong Kong said: "Bowtie has challenged the myth of ‘insurance is sold, not bought’, which was previously unimaginable. We take great pride in our support of Bowtie as they pioneer a new category of health insurer. Together, we are dedicated to making insurance more affordable and accessible to all."

Meanwhile, Mitsui & Co. recognised Bowtie's efforts in building a modern clinic and launching products in collaboration with new hospitals and wellness partners to provide preventive care.

"Bowtie's innovative initiatives have the potential to reshape the insurance landscape,” said Tomoya Shishido, CEO at Hong Kong Branch of Mitsui’s MBK Healthcare Management. “Their approach aligns incentives and breaks down complexities between insurers and healthcare providers, marking a crucial step in developing a value-based healthcare ecosystem, which is why Mitsui is keen to invest."

Launched in 2017, Bowtie has the biggest share of online insurance sales (around 30%) in Hong Kong this year and is reportedly mulling to expand into other parts of Asia, including Singapore.

In fact, Bowtie's growth is driven by its competitive digital insurance and health offerings, leading to the overall expansion of the online channel, contributing to a threefold increase in the direct channel market share of the insurance industry from 2.9% to 8.5%.

Bowtie's growth is further supported by repeated purchases from existing customers. Take critical illness products as an example, the company has experienced a remarkable growth rate of over 100% in the past year, according to the release.Currently, Bowtie has raised more than HK$680 million and provided over HK$60 billion of insured value to families.

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