Compare88 has just raised 28m usd series C.
This is quite instructive for investors as a case study validating the strategy of picking markets that are ripe for disruption and large enough.
Back in 2012, we saw quite clearly that a financial comparison play would make sense in asean, esp sg. Banks were already paying way more than 100m a year to acquire loan customers and credit card customers in sg alone! Also moneysupermart in uk was already large, profitable and listed.
The thesis was to then compare the various nascent players back then and back the team we like most and which was looking for funding. I picked imoney in the end. 6 years on.
1) imoney dominant in Malaysia. Moneysmart in sg and compare88 in indo. Battle in PH ongoing.
2) all raised in excess of 10m. All have strong growth trajectory.
3) what did not turn out was to have the local strong player successful open another core market. So this part of picking best team and having them dominant region may not be so easy.
4) for early investors. All would have made money.
Takeaway: pick right space makes a lot of sense. Team really matter but be realistic that it could be local domination only. I suspect it is due to funding ease which creates a lot more credible competition.
Disclaimer: we are/were investors in jungle, Monkshill and imoney.
