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The Egypt-based InsurTech and on-demand insurance platform Amenli has raised $2.3M in its latest funding round. The Seed round recorded participation from GFC, P1 Ventures, Liquid2 Ventures, Anim Fund with Costanoa VC, Cliff Angels and other angel investors.
Founded in 2020 by Omar Ezz El-Din, Shady El Tohfa, and Adham Nauman, Amenli set forth to disrupt the multi-billion dollar insurance industry by providing a platform for swift on-demand insurance plans. The Egypt-based startup spotted an opportunity in a scalable market overlooked by corporate insurance providers, integrating Tech to serve the mass retail market.
Despite an almost 80% drop in funding and 60% fewer transactions closed by MENA Healthcare startups in 2021 YoY, Healthcare startups specializing in insurance have raised stellar rounds that could mark a newfound funding opportunity for this sector. Remarkably, some of the more anticipated rounds closed by InsurTechs included a $5M Seed round by UAE-based Hala, a $1.6M Pre-Series A by KLAIM, and a stellar $20M investment in Sehteq prior to its acquisition by US-based Cloud Klair.
Traditionally corporate insurance providers tend to focus on B2B operations, capitalizing on big-spending clients with high credit scores. This business model alienates individual clients, slowing down the insurance issuance process for up to weeks, leaving a largely uninsured demographic “The cost of serving is very high and the economics basically do not work for them,” Co-Founder Shady El Tohfa shared with Techcrunch. In this segment is a middle-income pool of about 50 million adults; that’s the market Amenli is after, El Tohfa says.
The platform issues more than 500 policies in less than 10 mins compared to the minimum of three-week industry standard. The numbers look impressive; however, the founders still think the company is still on the path to finding product-market fit. “Right now, we are still trying to prove that there is demand in the market for selling insurance because there was no benchmark and we did not know if people would receive the insurance online,” he said. “Everyone would say that in Egypt, people do not want to understand or buy insurance. But what we found is that educated people in the middle-income segment are aware of insurance, understand it, and want to buy it, even though it wasn’t accessible to them before.”
The Egypt-based team plans to utilize their newly acquired funds to expand Amenli’s team, scale its operations rapidly, and further develop its customer base in a market expected to grow at CAGR of 7% per annum within the next five years.
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