The Fatfish Group Ltd (ASX: FFG) share price is surging today following an update on its insurance tech investee company, Fatberry. In early afternoon trade, Fatfish shares are up 9.5%, trading at 11.5 cents.
Let's take a closer look at what's driving the Fatfish share price today.
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What did Fatfish announce?
In today's release, Fatfish advised that Fatberry company has continued to record explosive growth since June 2020. In the 8 months up until February 2021, Fatberry has achieved monthly revenue of $175,000, up a massive 6,800%.
The insurance tech company launched in Malaysia in April last year with the goal of disrupting the vehicle insurance market. The business is already a leading insurance online destination that enables consumers to compare, customise, and purchase insurance products.
Earlier this month, Fatberry expanded its offering into the two-wheel motorcycle insurance market. It valued both the vehicle and motorcycle market in Malaysia at an estimated $2.67 billion in 2020 alone.
To help drive future growth, Fatberry plans to launch new products, capturing other insurance verticals.
Capital raising efforts
Fatberry also revealed that it has raised $0.8 million in Pre-Series A Funding. Fatfish and its subsidiary, Abelco, invested $285,000 and $329,000, respectively. The capital raising also received funding from several private investors.
As a result of the Fatfish/Abelco investment, their interest in Fatberry increased to 61%, up from 53% prior to the capital raise.
Fatberry stated that it will use the funds to further develop its product offering, and ramp-up marking and branding campaigns.
What did management say?
Fatberry CEO John Tan touched on the company's plans, saying:
With the funding raised, we will continue in our mission to make purchasing insurance on digital platform as easy as possible for consumers.
Fatfish group CEO Kin W Lau added:
Consumers are going to prefer to purchase insurance on digital platforms. It is an unstoppable macro-trend. We are excited about the prospect of Fatberry and we can see lots of synergies between Fatberry's insurance platform and our buy now, pay later business.
About the Fatfish share price
Over the past 12 months, the Fatfish share price has been a top performer on the ASX, jumping 2,650%. The company's shares hit a multi-year high of 43 cents last month.
On valuation grounds, Fatfish has a market capitalisation of roughly $103.2 million, with close to 1 billion shares outstanding.
