UAE-based start-up Democrance secures $800,000 in funding
Democrance, a UAE based insurance technology startup with a mission to enable partnerships that make insurance accessible and affordable for those who need it most, raised $800,000 during its first round of funding.
Leading regional and global individual and institutional investors participated in this round, including Jabbar Internet Group, one of the most prominent investors in internet and technology companies in the Arab World and Eos Venture Partners, a global InsurTech (Insurance-Technology) Venture Capital investor based in London.
Other investors included Turn8 from the UAE, F-Horizon Group from Saudi Arabia, Seedstars from Switzerland and several angel investors from the UAE and broader MENA region, Europe, South Asia and the United States.
“We are excited to implement ground breaking technology through a social enterprise model and provide insurance to income groups that need it, but face numerous barriers in attaining it. Democrance is the first regional insurance technology platform of its kind, and this important first investment will enable us to further develop our technology and broaden our reach,” said Michele Grosso, Co-Founder and CEO of Democrance.
Democrance is set to pave the way in developing the InsurTech industry along with educating the public about its usages and benefits. The digital platform brings together insurance and telecommunication companies, allowing users to get access to insurance through their mobile phone, without even having access to a bank account.
“Investing in Democrance aligns with our vision to embrace entrepreneurs in the Arab World who are willing to innovate and take risks to create something great. The technological advancement that Democrance has brought to the market is not only pivotal in terms of developing the insurance industry but critical to society’s welfare as it is inclusive and covers the working class that would typically not have easy access to insurance,” said Samih Toukan, Chairman of Jabbar.
Worldwide insurance penetration stands at six per cent, while emerging markets reach only half of that figure. In the MENA region, only one per cent of the lower-income population can access and afford microinsurance. Democrance has set itself a target to provide access to basic life and health insurance to 15 million low-income people across the MENA region by the year 2020–a population segment in which majority have never been insured before.
“At Eos we have a strong focus on developing markets where we believe the impact of new technology, like Democrance, can have a profound impact. Our focus as a global InsurTech specialised fund is to bridge the ‘digital chasm’ between InsurTech start-ups and traditional insurance companies. Democrance embodies this principle perfectly,” said Sam Evans, Founder and General Partner of Eos Venture Partners.