OneDegree secures inaugural venture debt financing from HSBC

New financing powers group's global expansion plans

OneDegree secures inaugural venture debt financing from HSBC

Insurance News

By Ada Tabanao

OneDegree Group has announced the completion of its first venture debt financing deal with HSBC, marking a milestone for the company. The financing, provided through the HSBC New Economy Fund, aims to support emerging tech-driven businesses and fuel growth in the innovation economy.

With a minimum ticket size of US$10 million for companies at Series B stage and beyond, the fund is tailored for early-stage, high-growth ventures.

“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 (pictured, second from right), co-founder and CEO of OneDegree Group.

“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 optimising 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.”

OneDegree’s tech-focused business model and track record of generating recurring revenue growth have positioned the company as a frontrunner in the industry. Its sustained growth strategies and commitment to long-term value have propelled it toward profitability and international expansion.

“We are pleased to arrange the inaugural venture debt facility of OneDegree Group, a homegrown fintech startup in Hong Kong, as part of their Series B fundraising round to supercharge their next phase of growth. The bespoke facility structure, which features equity warrants and a borrowing base concept, is tailored to the business needs of this fast-growing digital insurer,” said Frank Fang (pictured, second from left), general manager, head of commercial banking, Hong Kong and Macau, HSBC.

“Provided from our newly-launched New Economy Fund, the facility also represents HSBC’s first venture debt transaction booked in Asia as we continue to step up our support for innovation economy companies in their shift from start-up to scale-up.”

The transaction structure of the venture debt financing ensures a continued partnership between OneDegree Group and HSBC. This collaboration provides the company with increased capabilities to accelerate the growth of its InsurTech and cybersecurity SaaS businesses, as well as its digital asset insurance offerings, on a global scale.

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