Igloo co-founder and CEO Raunak Mehta
For years, Southeast Asia’s insurtech promise has rested on a simple idea: insurance should be bought where people already spend, borrow, shop, travel or top up their phones. The harder part has been turning that distribution advantage into a business that can scale without burning ever larger amounts of capital.
Singapore-headquartered Igloo is now trying to show that the model can move closer to profitability.
The company’s audited accounts for the year ended 31 December 2025 show revenue rising 45.9 per cent year on year to SGD80.9 million (~US$63 million). Net loss narrowed 60.4 per cent to US$6.7 million, from US$17 million in FY2024.
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The top-line growth is notable, but the more important signal sits underneath it. Igloo said revenue rose by US$19.8 million while total operating expenses remained broadly flat.
In other words, the company claims it added scale without adding cost at the same pace. That is the operating leverage many venture-backed technology companies have been under pressure to prove since the funding market cooled.
Igloo is targeting adjusted EBITDA breakeven by the end of 2026, with revenue growth continuing and no material increase in operating expenditure.
“Revenue grew 46 per cent year on year while OPEX stayed much the same,” said Raunak Mehta, co-founder and CEO of Igloo. “The way we’ve designed our operating system for insurance means that the cost of serving the next partner and the next million policies keeps falling. We are targeting adjusted EBITDA breakeven at the close of 2026.”
From insurance distributor to infrastructure layer
Igloo describes itself as an “operating system for insurance” in Southeast Asia. In practical terms, it provides the technology that allows insurers, digital platforms and financial institutions to build, distribute and manage insurance products online.
That puts the company in the embedded insurance market, where coverage is offered inside another customer journey. A shopper may buy device protection at checkout, a driver may access accident cover through a mobility platform, or a gig worker may receive microinsurance through a fintech or telecoms app. The product is insurance, but the point of sale is often not an insurer.
This model is particularly relevant in Southeast Asia, where insurance penetration remains low across many markets and traditional agency-led distribution can be expensive. The region’s large digital platforms, mobile-first consumers and fragmented regulatory landscape create both the opportunity and the complexity for companies such as Igloo.
Igloo operates across Indonesia, the Philippines, Thailand, Vietnam and Malaysia, with technology centres in China and India. It says its platform processes more than 100 million policies a month and has facilitated more than 2.2 billion policies cumulatively. Its partners include Shopee, Lazada, Tokopedia, GCash and Telkomsel, alongside more than 100 commercial and insurer partners.
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The company also runs Igloo Tech Solutions, which licenses its modular technology stack to insurers and enterprises. The aim is to shorten insurance product launch cycles from months to days by digitising product configuration, underwriting, claims adjudication and financial reconciliation.
Why flat costs matter
Igloo attributes its FY2025 performance to operating leverage in its embedded insurance business. The company said partnership volumes scaled without a proportionate increase in fixed costs, helped by what it calls AI-native infrastructure.
The phrase can sound vague, but the business logic is straightforward. If product setup, partner operations and claims processing can be automated, Igloo can serve more platforms and more policyholders without hiring large teams for every new product or market.
That matters in insurtech because distribution scale alone does not guarantee profitability. Companies still need to manage integration costs, customer support, claims workflows, compliance and reconciliation with insurers and partners. If each new partnership requires a heavy manual build, growth becomes expensive. If those functions are repeatable through software, margins can improve over time.
Igloo’s reported net loss includes US$1.6 million in non-cash share-based compensation, down from US$3 million in FY2024. It also includes US$860,000 in foreign exchange translation losses. These items do not erase the loss, but they suggest the underlying cash profile may be improving faster than the statutory bottom line shows.
Still, the company has not disclosed gross margins, cash balance, adjusted EBITDA figures, claims ratios or quarterly performance. Those numbers would give a clearer view of how close the business is to sustainable profitability, and whether growth is spread evenly across markets or concentrated in a handful of major partners.
A tougher market for insurtech
Igloo’s improved numbers come at a time when Southeast Asian startups are being judged less on expansion narratives and more on capital efficiency. During the peak of the funding cycle, insurtech companies could raise large rounds on the promise of digitising a vast underinsured population. Today, investors are asking whether those models can survive lower liquidity, higher scrutiny and slower follow-on funding.
Igloo has raised more than US$100 million from investors, including Eurazeo, Openspace Ventures, Cathay Innovation and BlueOrchard. That backing gives it room to build across markets, but it also raises expectations. A path to adjusted EBITDA breakeven by end-2026 is therefore not just a financial milestone; it is a credibility test for the embedded insurance category in the region.
The competitive field is also active. Singapore-founded bolttech is one of the most prominent global insurtech platforms with a strong Asia presence, while Australia-born Cover Genius works with digital companies worldwide on embedded protection. In Indonesia, PasarPolis has long focused on microinsurance and digital distribution, while Qoala operates across Southeast Asia with an agent-assisted and digital insurance model. Igloo’s differentiation lies in its infrastructure-led pitch and deep platform partnerships, but rivals are chasing the same broad shift: making insurance available through everyday digital channels rather than traditional sales routes.
The next test
For Igloo, the next 12 months will be about proving that FY2025 was not a one-off improvement. Revenue growth of 45.9 per cent is strong, but the company’s more consequential claim is that it can keep expanding without a material rise in operating expenditure.
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If it reaches adjusted EBITDA breakeven by the end of 2026, Igloo would stand out in a sector where many players have struggled to balance growth, regulation and unit economics. If it misses, investors will likely look more closely at the cost of partner acquisition, market-level profitability and dependence on large distribution channels.
For now, the audited FY2025 accounts show a company moving in the right direction: bigger revenue, smaller losses and a clearer profitability target. In Southeast Asia’s still-developing insurtech market, that may be the most important policy Igloo is trying to underwrite.
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