UAE's Klaim secures $26 million in Series A funding to expedite insurance reimbursement for healthcare providers quickly
In a significant move for the healthcare industry in the Middle East and North Africa (MENA) region, UAE-based fintech startup KLAIM has raised $26 million in funding. This investment will be used to expand operations, drive innovation, and revolutionize healthcare financing across the region.
The funding round was led by Saudi-based Mad'a Investment, with CDG Invest, the investment arm of Morocco's Deposit and Management Fund, also participating. This investment will enable KLAIM to extend its service reach and investment deployment across multiple countries, tapping into a broader insured population in a region undergoing digital disruption in healthcare insurance and financing.
One of the key challenges in healthcare finance is the delay in claim payments. Regulations require claims to be paid within 45 days after submission, but the typical payment cycle takes 60-90 days. KLAIM addresses this issue head-on, enabling healthcare providers to access payments within 24 hours of claim submission. Insurers, on the other hand, take up to 120 days to pay 90% of submitted claims. With KLAIM, this lengthy process is significantly reduced, improving cash flow for healthcare providers and ensuring quicker access to necessary medical services for patients.
The partnership with AlKhair Capital will further enhance KLAIM's capabilities. This partnership aims to deploy up to $50 million in healthcare-focused investments across the Gulf Cooperation Council (GCC) markets, supporting cross-border collaborations and Sharia-compliant investment products. This partnership will allow KLAIM to leverage Dubai’s strategic financial hub advantage at the Dubai International Financial Centre (DIFC) to access international capital markets and create investment structures that cater to Sharia-compliant frameworks, enhancing its ability to operate cross-border throughout the GCC and wider MENA.
KLAIM is positioned as a digital enabler helping insurers and healthcare players digitize processes, reflecting rising demand in the insurance and healthcare financing ecosystem in the GCC. The infusion of funds will enable KLAIM to scale its regional operations, focusing on the UAE, Saudi Arabia, and Oman, and drive innovation in healthcare fintech.
Founded in 2019 by Karim Dakki and Ghafoor Ahmad, KLAIM is set to make a significant impact on the healthcare financing landscape in the MENA region. With this funding, KLAIM is poised to accelerate medical insurance claim payments, digitize healthcare financing, and drive regional growth in the healthcare fintech sector.
[1] Press Release. (2022, August 23). KLAIM Secures $26 Million Strategic Investment Led by Mad'a Investment. Retrieved from https://www.prnewswire.com/news-releases/klaim-secures-26-million-strategic-investment-led-by-mad-a-investment-301610697.html [2] AlKhair Capital. (2022, August 23). AlKhair Capital and KLAIM Partner to Deploy Up to $50 Million in Healthcare-Focused Investments Across the GCC. Retrieved from https://www.prnewswire.com/news-releases/alkhair-capital-and-klaim-partner-to-deploy-up-to-50-million-in-healthcare-focused-investments-across-the-gcc-301610698.html [4] Gulf Business. (2022, August 23). UAE's KLAIM secures $26 million investment to expand healthcare financing solutions across MENA. Retrieved from https://gulfbusiness.com/uaes-klaim-secures-26-million-investment-to-expand-healthcare-financing-solutions-across-mena/
In this Middle Eastern and North African (MENA) region expansion, KLAIM, a fintech startup based in the UAE, will leverage technology to revolutionize healthcare financing and digitize processes, particularly focusing on reducing the delay in claim payments. This venture will also extend their services across multiple countries, tapping into various business opportunities in the healthcare sector, which is undergoing technological disruption.
The strategic partnership between KLAIM and AlKhair Capital aims to drive investment in the healthcare sector, focusing on Sharia-compliant solutions, and further strengthen the startup's financial and technological capabilities in the business of healthcare financing.
