Hong Kong’s digital insurer OneDegree Group announced that it has closed its first venture debt financing transaction with HSBC. Details of the financing was not disclosed.

With this venture debt, OneDegree will be able to bolster its capability to accelerate the expansion of its insurtech, cybersecurity SaaS business and digital asset insurance business internationally and will leverage the global footprint of HSBC as its strategic partner.

The facility is provided under the HSBC New Economy Fund also represents the bank’s first venture debt transaction booked in Asia. It is earmarked to support early-stage, high-growth, tech led businesses and stimulate growth in the innovation economy.

The ticket size for venture debt solutions under the fund starts from US$10 million for companies at Series B stage and beyond.

Just last month, OneDegree has raised US$27 million to close its Series B funding round at US$55 million. This brings its total funds raised to over US$97 million.

Alvin Kwock, Co-Founder and CEO of OneDegree Group said,

“We are delighted to have HSBC as our strategic partner and to be their very first venture debt transaction booked in Asia.

 

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.”

Frank Fang, General Manager, Head of Commercial Banking, Hong Kong & Macau, HSBC said,

“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.”