RIYADH: The UAE-based fintech and medical factoring solution provider KLAIM has raised $1.6 million in its latest funding round, MAGNiTT reported.
The Pre-Series A round was led by Mad’a Investments from Saudi Arabia, and saw commitments from Arzan Venture Capital and Wealth Well, as well as a follow-up investment from Techstars, which opened its seed funding round in December 2020.
KLAIM was founded in 2019, and its business model involves buying healthcare claims from providers to relieve them of cash flow problems when insurance companies drag their feet on payouts.
According to KLAIM's growing dataset of over 8 million claims, in the UAE alone it takes on average 113 days for insurance companies to pay out on 90 percent of claims. The remaining 10 percent can take well over a year, or even remain unpaid.
The UAE-based fintech will use the fresh influx of capital to accelerate its growth in Saudi Arabia.
This move comes at a time Saudi Arabia is committed to developing a new efficient and modern model to manage the country's medical insurance financial flows through the National Platform for Health Information Exchange Services (NPHIES).
The healthcare sector kept the steady signs of development it showed in the first half of the year across Emerging Venture Markets (EMVs), according to MAGNiTT's August 2021 Venture Investment Dashboard.
Healthcare startups in MENA closed the 4th highest amount of deals in August, and the 5th highest amount in Turkey and Pakistan.
In MENA, driven by deal momentum in geographies like UAE and Egypt, collectively accounting for 66 percent of all transactions closed in the first half of 2021, the Healthcare industry closed half the amount of deals in the fiscal year 2020.