hala, an Abu Dhabi-based insurtech company, has secured US$5 million in a fresh fundraise, the company announced in a statement.
The round was led by Entrée Capital, and saw participation from Mubadala Investment Company, EQ2 Ventures, Global Founders Capital, 500 Startups, and Hambro Perks Oryx Fund.
hala, previously Addenda, was founded in 2018 as a fintech company that used blockchain to reconcile payments between motor insurance companies in the UAE. In Q4 2020, the company pivoted to providing motor insurance.
Funding will be used to grow the company’s product suite, including home insurance, the company said in the statement. Further, the Emirati insurtech company is also looking to expand across the Middle East, starting with Saudi Arabia.
“People would love insurance if insurance loved them back. The region’s insurers have focused too hard on selling a product before understanding the customer’s knowledge and preferences.
hala aims to bridge the gap between insurance misconceptions and people’s needs. We’re proud to have partnered up with the regional and global investors to make this vision a reality,”
says Walid Daniel Dib, the CEO and co-founder of hala.
hala is part of the UAE’s insurtech boom
hala’s digital car insurance product rewards users with hala coins for driving without accidents over a period of time. The coins can be spent on meals, gym memberships, and hotel stays, at the company’s partner outlets.
The company also has a home insurance product in the works. Currently at the waitlisting stage, the product provides coverage for a number of home items, including electronics, jewellery and furniture.
hala is among many fintech startups benefitting from the UAE’s insurtech boom. According to a Capgemini report last year, 67% of UAE-based insurers were interested in collaborating with insurtech companies. Further, 85% were looking to partner with technology providers.
Featured image credit: Hala (L-R Hala co-founder Karim Dib, CTO Harsh Ajmera, and CEO and co-founder Walid Dib)