Creative Zone, a Dubai-based business formation firm, has acquired a stake in insurance comparison platform InsuranceMarket.ae which values the business at $80 million (Dh294m).
The deal is part of a strategic partnership to further the growth of an ecosystem to support start-ups, Creative Zone said in a statement on Sunday. The company did not reveal the size of its investment or its stake.
“We aim to become a catalyst that not only simplifies the business setup process, but a one-stop shop for all the business requirements to facilitate ongoing sustainable business growth and success,” said Steve Mayne, managing partner of Creative Zone.
The SME sector employs 85 per cent of the country’s workforce in the non-oil private sector and contributes about 53 per cent of its GDP, the company said, citing figures from the Federal Competitiveness and Statistics Authority.
“Our partnership with InsuranceMarket.ae will help us broaden our offering and provide customised insurance services to our clients to support the growth of their business,” said Jigar Sagar, managing director of Creative Zone.
InsuranceMarket.ae is a digital platform for comparing all types of business insurance and personal insurance. The firm says it has served more than 200,000 clients since its inception.
Avinash Babur, Founder & CEO, InsuranceMarket.ae™, “We are proud to have partnered with CREATIVE ZONE who are, like us, the largest and fastest growing organisation in their field. We have an exciting pathway to leverage our association to bring greater value to the public of the UAE, especially to the vital SME sector. I look forward to collaborating with Creative Zone to further enhance the delivery of insurance services in a seamless and digital-first way whilst ensuring that we continue to maintain the highest standards of personalised service and prudent risk transfer advice – not only at the time of comparing and purchasing insurance but also at the stressful time of claiming after an unfortunate event.”
Investments in start-ups, especially those specialising in Financial Technology (FinTech), has gone up this year, according to a new report by technology platform Magnitt. In its third quarter report published earlier this month, it reported that the value of venture deals completed increased by 30 per cent to $517m and the volume of deals also increased slightly to 354. FinTech companies were the most attractive to investors, representing 14 per cent of the companies funded.
UAE financial comparison website yallacompare raised $8m earlier this year, while insurance technology firm Aqeed.com secured $18m in series A funding from its corporate shareholders ahead of its launch last year, and established player Souqalmal.com raised $10m in series B funding from leading UK firm GoCompare in October 2017.
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