Dubai, November 10, 2016 – BECO Capital, a regional venture capital firm focused on technology investments in MENA (Middle East and North Africa), this week announced that it has led a new USD 3.5 million round of funding for Bayzat, a UAE-based technology startup that provides insurance and HR solutions. The two-year-old startup assists patients and companies in managing their health insurance in a simple, clear and accessible way through their computers and mobile devices.
BECO Capital’s investment will be used to release exciting products that can better serve its customers, both employees and HR departments, while continuing to offer them a great customer experience. The funding will also help to continue to grow the team. BECO Capital, which focuses exclusively on supporting technology startups in promising sectors, has a history of backing early-stage organisations that are leading the technological disruption in the region. Precinct Partners, a Dubai-based a growth capital firm, also participated in the transaction.
Amir Farha, Co-Founder and Managing Partner of BECO Capital, says: “Bayzat continues to expand its footprint in the region. Talal has built an amazing team that continues to execute on their plan, and we are excited to back them up with their expansion. We are thrilled to be investing in Bayzat, which is providing more transparency and simplifying the management and use of the healthcare insurance policies and hospital networks.”
Talal Bayaa, Chief Executive Officer and co-founder of Bayzat, says: “We are energized by the confidence BECO Capital has placed in us. With their support, we can focus on expanding and raising the bar. With the new funding, we will be better positioned to bring more innovations to the market and scale even faster. This investment will allow us to accommodate an overwhelming demand by individuals and companies looking for a more transparent, reliable and simpler health insurance experience. Since the last round, we have grown by over 100% each quarter. The number of users on the platform has grown by 30 times. The growth we are most proud of is that our team has quadrupled in size. Bayzat has been able to attract extremely talented team members who are passionate about solving the problems in the insurance industry while creating a new and better customer experience.”
Amir Farha added: “We are now at the top of the early innovation adoption cycle, with technology now proliferating large industries and creating efficiencies that never existed before. Consumers and businesses are able to extract tremendous value by economies of scale. They can reach their target customers faster and more effectively, and execute things more efficiently, all while drastically reducing the costs. The healthcare sector has been growing 10% annually across MENA, with significant potential for growth in quality care over the next few years. Bayzat is well positioned to take advantage of this growth and revolutionize the way the medical insurance industry works today.”
The UAE and Saudi Arabia are two of the fastest growing markets for health insurance in the Gulf Cooperation Council (GCC), both have grown tremendously over the past few years. In addition, Kuwait has taken major steps aimed at developing a more sustainable economic model for the Kuwaiti healthcare system. According to a report on the “Challenges Resulting from the Introduction of Mandatory Healthcare Insurance in the GCC Region", estimates suggest that across the Middle East up to 50% of the money spent on healthcare is wasted. Companies like Bayzat can increase efficiency and effectiveness to curb this kind of wastage.
Talal Bayaa added: “As mandatory medical insurance comes into effect across the region, our focus on technology and customer service has allowed us to leverage this market opportunity and cater to the significant impact it has on the healthcare insurance landscape in the GCC region. The biggest change in the industry is that there is now more awareness about health insurance, which has allowed us to differentiate ourselves. We look forward to leading this rapidly growing market while providing effective and efficient solutions. With a strong staff and a great partner, we will continue to build the best company possible for our customers.”
SOURCE: BECO Capital