BECO Capital, a regional venture capital firm focused on technology investments in the Gulf Cooperation Council (GCC) countries, today announced that it has invested in Bayzat, a UAE-based medical insurance technology startup.
Bayzat assists patients and companies in managing their health insurance in a simple, clear and accessible way through their computers and mobile devices.
Bayzat raised a Series A round of AED 3.67 million (US$1 million) from BECO Capital and a number of private investors. The funds will be used to accelerate the company’s growth and expand its services and reach across the UAE. BECO Capital, which focuses exclusively on supporting technology startups in promising sectors, has a history of assisting early-stage organisations, with investments including Propertyfinder.com and Careem.com.
Amir Farha, Co-Founder and Managing Partner of BECO Capital, says: “Bayzat is a perfect match for our investment thesis of discovering young and promising regional technology companies with talented management, and backing them with funds and operational support to accelerate their growth.”
BECO Capital’s investment is the only institutional funding completed by Bayzat as it eyes the next phase of its evolution.
The move marks BECO Capital’s first investment in a healthcare technology firm since it was launched three years ago. The partnership is timely. The medical insurance technology market in the region is nascent, almost non-existent, but is expected to grow exponentially with the growth of the insurance sector. Medical insurance in the Gulf region has been growing at a quick pace, driven by increased government and private expenditure in the healthcare sector in general as well as new insurance regulations coming online.
Figures show that healthcare expenditure over the past 10 years in the GCC has been growing by 7.9 percent year-on-year, with the figure expected to reach US$79.2 billion this year. In parallel to that, the overall GCC insurance industry has almost tripled in value between 2006 and 2013, with insurance premiums increasing from US$6.4 billion to US$18.4 billion. The current insurance premium market in the UAE is estimated at US$2.7 billion. With the Dubai Health Insurance Law currently being rolled out, the health insurance sector is expected to grow by over 10% in the coming year.
Talal Bayaa, Chief Executive Officer and co-founder of Bayzat, says: “BECO Capital’s investment in Bayzat is a great vote of confidence in our business model and the solution we offer to the sector. This partnership with a highly respected institutional investor will boost our growth journey and help us achieve our vision of becoming the market leader in online healthcare insurance management. We are fortunate to be working with a team that understands our unique offering and that has great market access and proven track record in creating, financing and scaling regional technology startups. Together, we will further develop our platform and gain better market access, nurture new connections and relationships and fast-track our growth and client adoption.”
The Bayzat healthcare insurance technology solution is a cloud-based platform that offers a seamless way, for both individuals and companies, to find, purchase and access medical benefits. It was developed to simplify the process of finding the most suitable medical insurance, while saving money for the employee, employer and insurance company in question. The technology makes sure the employee stays in its insurance network coverage and decreases additional premium costs. The solution is particularly gaining momentum with both regional and multi-national conglomerates, which are able to offer their employees quick and efficient access to information about their tailored insurance packages, the approved network of healthcare providers, as well as claim forms, handbooks and documents.
Amir Farha, Co-founder and Managing Partner at BECO Capital, says: “We might be looking at a real game-changer for comparing, buying and using medical insurance in the region. Bayzat has the first mover’s advantage in a market that is thirsty for deciphering complicated policies, providing more transparency and simplifying the management and use of the healthcare insurance policies and hospital networks. We are very impressed with the company’s easy-to-use platform and the potential it presents. More importantly, we have been amazed by the team behind Bayzat and its vision for the company.”
Bayzat offers a user-friendly cloud-based interface that provides real-time visibility for both employees and employers as well as independently-insured patients. The platform digitalises insurance policies and makes them accessible to employees by smartphone, computer and tablet. It also simplifies the policy’s terms and conditions, making it easy for employees to understand their benefits. Its flexible functionalities allow users to compare, apply for insurance, and even upload required documents. An interactive map identifies locations of hospitals, clinics, doctors, pharmacies and laboratories within provider’s network of the insured.
Talal Bayaa concludes: “Our research showed that HR managers, employees, businesses and insurance companies were in real need for an easy, efficient and cost-saving solution that simplifies the process of understanding the insurance plan and medical network. We wanted to change the way families, employees and employers think about health insurance.”