The startup will use these fresh funds to launch new products for its customers, both employees and HR departments.

Jojo Puthuparampil is a business news writer for Inc. Arabia.

Bayzat, a UAE-based technology startup that provides insurance and HR solutions, has raised a $3.5 million round led by BECO Capital, it announced in a statement. 

The two-year-old startup, which assists patients and companies in managing health insurance through their computers and mobile devices, said that the fresh funds will be used to launch products that can better serve its customers, both employees and HR departments.

“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,” said Talal Bayaa, CEO and co-founder of Bayzat.

According to Bayaa, since the last round, the startup has grown by over 100% each quarter.The number of users on the platform has grown by 30 times, and the startup has also quadrupled its team size.

“Bayzat is providing more transparency and simplifying the management and use of the healthcare insurance policies and hospital networks,” said Amir Farha, co-founder and managing partner of BECO Capital, explaining the investment. 

BECO is a venture capital firm focused on technology investments in MENA. Precinct Partners, a Dubai-based a growth capital firm, also participated in the funding round.

According to Farha, the healthcare sector has been growing 10% annually across MENA, with a significant potential for growth in quality care over the next few years. 

The UAE and Saudi Arabia are two of the fastest growing markets for health insurance in GCC. Kuwait also has taken steps aimed at developing a more sustainable economic model for the Kuwaiti healthcare system.

Oman too has ordered private companies in the country to provide ethical health insurance cover to all private sector workers by 2018.

According to a recent study, 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, according to Farha.

The challenger?

On the ground, Bayzat is the latest to enter the financial products comparison game in the Middle East.

In September, Middle East-focused financial comparison website also raised $2.4 million in a bridge funding round.

compareit4me, which allows users to compare finance and banking products from around the Middle East, launched its insurance platform in early 2016. This platform allows users to view, compare and buy car, home, travel or life insurance online.

With this round, the firm has raised close to $6 million in funding. The funds will be used to build out compareit4me’s insurance business in the UAE, it said. 

The firm will also use the funds to expand across the Middle East and North Africa (MENA) region.

With a panel of 10 insurance providers, compareit4me insurance business claims to be the largest regional insurance comparison platform.