Medical fintech Klaim closes pre-Series A funding round

The round was led by Saudi-based Mad’a Investments, and Arzan Venture Capital and Wealth Well, a follow-up investment from Techstars, and angel investors will fuel Dubai-based Klaim’s expansion plans in the Saudi and US markets.

Klaim allows hospitals and clinics to reduce claim processing costs and optimise cash flow management. The healthcare system in Saudi Arabia is undergoing digital transformation through national standardisation. Through NPHIES, the National Platform for Health Information Exchange Services, the government is working to develop a new, efficient and modern model to manage the country’s medical insurance financial flows.

“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 prioritise high-quality medical care and grow their practice,” said Karim Dakki, co-founder and CEO of Klaim.

Insurance companies tend to delay their payments to healthcare providers. According to Klaim’s growing dataset of 8 million+ claims, in the UAE for instance, it takes on average 113 days for insurance companies to reimburse 90 percent of outstanding claims to providers. The remaining 10 percent of claims stretch well over a year or remain unpaid in many situations. This is a severe problem impacting the industry since capital tied up with insurers cannot be invested in improving the quality of healthcare.

“The factoring industry is big globally, but limited to large companies in the Middle East. We introduced a steep innovation making it tech-enabled and very specific to the needs of Healthcare providers. We are very excited to be the go-to solution and help medical practitioners focus on their patients’ health. At the same time, we handle medical claims processing for them.” – said Ghafoor Ahmad, co-founder and chief revenue officer at Klaim.