Dubai-based health insurance tech startup Sehteq, has secured a $20 million investment from its anchor investor 971 Capital.
Launched in November 2017 in partnership with Department of Economic Development, Government of Ras Al Khaimah and Ras Al Khaimah Economic Zones RAKEZ, Sehatq is a digital health insurance platform that offers affordable insurance plans for individuals and companies. The startup officially started operating in February 2018 after acquiring its first health insurance provider license, known as third party administrator TPA.
Currently, Sehteq is among the top three health insurance providers in the UAE and ranks ninth on the global insure-tech list, based on funding, according to a statement issued by the company on Monday.
"This investment will upgrade Sehteq in conjunction with its technology and reinsurance verticals to a new and innovative version of Munch Re – MedNet or Alliance – Nextcare,” said Saad AlJaibeji, 971 Capital's senior partner.
Apart from the formation of the reinsurance company, Sehteq will raise an additional investment of $3 million, which will go towards supporting its existing artificial intelligence-based system, building consumer centric applications to enhance it’s 650,000 users’ experience.
Sehteq also acquired three of the 21 existing licenses and is looking to acquire two more before the end of the year to reach its one million consumer target.
According to the statement, insurance is one of the most complex industries in the UAE, with a limited number of licences being available to new insure-tech players, adding that the last licence for TPA was awarded in 2016 and that new players to the market have to buy one of the legacy businesses.