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After an impressive series of strategic funding and acquisition moves, the UAE-based InsurTech Sehteq has signed a definitive term sheet of acquisition by Boston-based cloud computing and SaaS startup Cloud Klair. As it gears up to expand into regional markets, this latest acquisition for an undisclosed amount will take effect post-January 2022.
Launched in 2018, Sehteq positioned itself as a Tech-integrated health insurance startup that aims to make insurance accessible, affordable, and most importantly efficient. Through its platform, the startup leverages AI to digitize the supply of insurance plans to individuals and families in the UAE, accelerating and fully automating the sale & post-sale processes. This acquisition could unlock great potential for the UAE-based team capitalizing on the smart technologies and expertise of Cloud Klair as they pursue innovations in data & information.
The Healthcare ecosystem in MENA has been active in 2021. Healthcare funding rounds in MENA over 2021 YTD account for almost 60% of transactions closed in Full Year 2020, making the Healthcare industry the 4th-most active ecosystem in MENA by number of deals as of August 2021. More remarkably, this latest acquisition marks the 10th exit for a healthcare startup in MENA since 2015.
Sehteq has observed exponential growth and strategic expansions throughout its startup journey, creating a synergy between upgrading its Technology and growing its business. In August of last year, Sehteq raised $20M from 971 Capital to launch its reinsurance vertical further expanding its offering. A year after, the UAE-based team focused on vertical integration by acquiring digital insurance SaaS startup Dawa, as it gets ready for regional expansion; later raising the same acquisition value in a $3M Venture Debt investment for initial investors.
In a natural trajectory of events, this new acquisition marks a milestone in Sehteq’s journey as Co-Founder Saif Aljaibeji elaborates “ Sehteq will complete 4 years since it was launched this October, and our technology-driven business model was tested at scale with the growth of our client base from 20,000 customers in 2018 to more than 700,000 in 2021. The partnership with Cloud Kair will help the startup realise its true potential to be the first health insurance PAAS in the region” said Saif Aljaibeji, Sehteq’s co-founder.
What seems to be a Tech-stack, resource, and business-driven acquisition, Sehteq is delving into a new phase with Cloud Kair, assigning Cheif of Staff Hussien Ali as CEO, with Co-Founder and Chief Medical Officer Noor Al Kamil as interim chairwoman as they set up for the new board of directors. As they set eyes on regional expansion, Ahmad Izzy, Cloud Kair’s VP for MEA concluded with an affirmation of Sehteq’s potential “ it’s about time for Sehteq’s innovative technology to be made available to small and medium-size health insurers and TPAS in the MEA region.”
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