Easing processes in the employment sector
Bayzat, the UAE-based startup that provides insurance, HR and employee benefit solutions, recently raised a $16 million Series B funding round led by Point72 Ventures and Mubadala Capital, becoming the top-funded InsurTech startup in the region. Through the funding, Bayzat plans to further enhance its customer focus through features and solutions, which are mainly targeted at SMEs.
Talking about this specific target audience, Chief Executive Officer Talal Bayaa mentioned in a statement that "the opportunity lies in enhancing the employee experience of 70 per cent of SMEs in the UAE that don't have HR automation in place. We're incredibly excited to build technology-enabled experiences that meet the challenges faced by our customers.” This provides for an interesting dynamic in the insurance, human resources and other employee-related B2B startups, as the SME sector is the backbone of any economy.
However, this suite of offerings is not where Bayzat initially started. Founded in 2012 by Talal Bayaa, Brian Habibi and Tarek Bayaa, the startup initially focused on (health) insurance and financial solutions, which allowed users to compare and purchase insurance policies as well as banking offerings through the platform.
When the insurance and financial comparison market got more crowded, with the likes of Yallacompare and Souqalmal entering the field, Bayzat looked to complement its services with a broader array of employee-friendly offerings, including HR, payroll and other benefits. This allowed the underserved SME market to provide their employees with simple employee management solutions, including vacation management, payroll processing, and others.
Moreover, like many corporations, startups and scaleups in the region and internationally, Bayzat has launched a FinTech solution in addition to its already existing product line-up, called EarlyPay. The company launched this solution earlier this year to provide employees with the option to receive their ‘earned’ salary in advance of the scheduled pay date, for a small fee. Bayzat was not available for a comment regarding the launch of its newest product.
However, with the latest funding round of FlexxPay, a startup that recently partnered with insurance conglomerate Nasco, Bayzat will see competition in this newly ventured field increase as well. With a full suite of offerings, as mentioned above, and a clear business mandate, it is to be seen how the company fares against the competition of larger insurance providers moving into FinTech space.
However, as per their funding announcement statement, Bayzat claims that their new monthly bookings have increased tenfold since the beginning of 2019, providing a positive growth signal for the startup as well as the wider market of other B2B solution providers.