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Insurtech OneDegree raised Venture Debt funding from HSBC

The Hong Kong-based InsurTech company OneDegree Group announced that it had completed its first venture debt financing deal with HSBC.

According to a statement from OneDegree, the facility is offered through the HSBC New Economy Fund, which is intended to support early-stage, high-growth, tech-led businesses and foster the development of the innovation economy.

The ticket size for venture debt solutions under the Fund, according to the company, begins at $10 million for companies at Series B stage and beyond.

With the help of this venture debt, OneDegree has increased its capacity to quicken the international expansion of its InsurTech, cybersecurity, and digital asset insurance businesses. It will also benefit from HSBC’s extensive global network as a strategic partner.

It claimed that OneDegree has proven the viability of its tech-driven business model, as well as an impressive capacity to produce recurring revenue growth and international expansion.

This demonstrates that the company is on a solid path to profitability, supported by long-term value-promising sustainable growth strategies.

It claimed that the innovative transaction structure, which includes equity warrants to signify the ongoing partnership between OneDegree and HSBC, is beneficial to both parties.

“We are delighted to have HSBC as our strategic partner and to be their very first venture debt transaction booked in Asia,” said Alvin Kwock, Co-Founder and Chief Executive Officer of OneDegree.

“As OneDegree is rapidly reaching scale and on a clear path to profitability, we look for flexible ways to support our business growth, while at the same time reducing our cost of capital and optimizing our capital structure,

“During our discussion, we found that the HSBC team has strong capability, they really understand our business and are committed to supporting our growth across multiple geographies,” he added.

OneDegree Group, a local fintech startup in Hong Kong, requested a venture debt facility from HSBC as part of their Series B fundraising round to jumpstart their next stage of growth, according to Frank Fang, General Manager, Head of Commercial Banking, Hong Kong & Macau.

InsurTech company OneDegree was founded in 2016. It announced in June 2023 that a $55 million Series B round had been completed successfully, bolstering its dedication to innovation and market leadership.

The company runs a number of businesses both globally and in Asia. It offers category products in pet, fire, home, and medical insurance through OneDegree HK, a direct-to-consumer virtual insurer authorized by the Hong Kong Insurance Authority.

To serve insurers and intermediaries worldwide, the company partners with OneDegree Global, a technology company in Singapore, to create the cutting-edge insurance core system IXT and cybersecurity solutions Cymetrics.




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