UAE-based InsurTech startup Democrance has raised US$800,000 in its first funding round from both regional and international investors.
The funding is received from a group of tech and angel investors within the Arab region, South Asia, Europe and the US, led by Dubai-based Jabbar Internet Group, a leading Internet and technology investor in the Arab world, and London’s global InsurTech venture capitalist investor, Eos Venture Partner. Other investors include Saudi Arabia’s F-Horizon Group, Switzerland’s Seedstars, and Turn8 from the U.A.E.
Democrance uses telecommunications and insurance companies to make microinsurance available to the low-income MENA population.
The company will use the new funding to accelerate its technology and release pilots across the region, as well as grow its internal team.
The startup, founded in 2015, plans to reach 15 million low-income residents in the Middle East by 2020.
With less than 20% the MENA population holding a bank account, Democrance offers access to insurance without setting up a bank account or even visiting a branch. Its concept allows those in need of an insurance plan to apply for coverage through their mobile phones.