The startup plans to utilise the new capital to expedite its growth in Saudi Arabia through the digitization and automation of medical billing processing and payments for healthcare providers.
UAE-based healthtech startup, KLAIM, has secured $1.6 million in a Pre-Series A round. Led by Mad’a Investments from Saudi Arabia, the round also saw participation from other notable names including Arzan Venture Capital, Wealth Well, returning investor Techstars and a handful of angel investors. KLAIM purchases healthcare claims from healthcare providers to alleviate their cash flow issues brought on by insurance companies.
The startup plans to utilise the new capital to expedite its growth in Saudi Arabia through the digitsation and automation of medical billing processing and payments for healthcare providers as well as providing them with the needed capital. “Using our company’s tech-enabled factoring as a service platform, providers no longer have to worry about pending claim payments. Access to liquidity upfront allows providers to prioritize high-quality medical care and grow their practice” declared Karim Dakki, Co-Founder and CEO of KLAIM.
Insurance companies often delay their payment to healthcare providers. In the UAE for example, it can take up to 113 days for insurance companies to pay back 90 percent of claims to providers. The outstanding 10 percent will oftentimes go unpaid or stretch for years. This is a critical problem negatively impacting the industry as the capital remains tied up with the insurance companies and cannot be properly utilized by healthcare providers. “Rejections and claim payment delays result in losses amounting to millions of dollars annually across the industry. Healthcare providers face business instability in their day-to-day operations: paying salaries, upgrading equipment, and expanding pose greater challenges than they should. We support the industry to provide better care through our innovative blended approach to finance and healthcare” said Ghafoor Ahmad, Co-Founder and Chief Revenue Officer at KLAIM.
As Saudi Arabia shifts its orientation towards a tech-driven future, its healthcare system is undergoing a digital transformation. The government is working to establish a new more efficient model to manage the country’s medical insurance financial flow through the National Platform for Health Information Exchange Services (NPHIES).