CARROT DOUBLES CAPITAL VIA SUCCESSFUL RIGHTS OFFERING

KUALA LUMPUR, July 2 (Bernama) -- Carrot General Insurance Corp (Carrot), South Korea’s first digital-only insurance provider, announced that the rights offering (the Rights Offering) has been successfully closed with the gross proceeds of ￦100 billion (US$88.7 million). (US$1 = RM4.163)

According to a statement, the amount of proceeds equals to the subscription of its rights the company issued for its founding capital back in 2019.

“This current round of offering was preplanned from the establishment of the venture, but the contribution size has increased as our shareholders recognised Carrot’s innovation capability and future growth potential,” said Carrot Chief Executive Officer, Paul Jung.

“The offering positions Carrot to further strengthen the competitiveness, drive future growth and will accelerate the pace we bring the future of insurance to the market.”

The digital non-life insurer has been a hot topic in insurance and investment circles since it established through a joint partnership between big name investors, namely Hanhwa, SK Telecom, Hyundai Motors, Altos Ventures and Stic Investments.

As such, the latest round of offering seems to reaffirm stakeholders’ trust and confidence in its future growth potential and business strategies.

Witnessing a strong J-Curve growth, the Insurtech company recently hit 200 thousand new subscribers to its pay-per-mile auto insurance cover in less than two years since launching the product.

Carrot’s fresh concept of ‘paying only for the miles driven, at the end of the month’, seems to be well-taken by the market.

In addition, the company has also announced to the public that it is undergoing development of pay-how-you-drive (UBI) model, which calculates premiums based on the risk factors associated with driver behaviours.

Aside from Carrot’s proprietary driving data analytics and vehicular/IoT device application to its auto insurance, they are driving technology innovation further in other products as well.

-- BERNAMA