SAUDI ARABIA – Saudi Arabian healthtech platform Clinicy has clinched a “seven-figure” funding round to extend their services and user base.
The round, led by Riyadh-headquartered private equity firm Mad’a Investment Company, is the largest pre-series A investment in the kingdom’s healthtech sector this year, although a statement from the company did not disclose how much had been raised.
Launched in 2017, Clinicy is a healthtech company which has developed a system to manage daily operations and automate bookings and appointments and its integration has reduced no-show rates by up to 40 percent.
“This investment will allow us to scale the number of medical institutions and patients using Clinicy and further support our vital healthcare sector,” Clinicy co-founder and managing director Talal Waleed Al-Hussein said.
This expansion will help to reach a larger segment of customers and focus on creating enhanced experiences and benefits for users, a move that will go towards solving the 30% average no-show rate for patients in Saudi, costing more than SAR2.2 billion (US$600 million) annually.
Health care in the Kingdom of Saudi Arabia (KSA) is mainly provided through the Ministry of Health. Primary, secondary and tertiary health care services are run by the government of Saudi Arabia.
The free healthcare facilities for the Saudi Arabian citizens come with a hefty price tag. Saudi Arabia has by far the highest health care expenditure in the entire Gulf Cooperation Council region with 37.7 billion U.S. dollars.
At the same time, private expenditure on healthcare in Saudi Arabia the highest in the Gulf Cooperation Council region at over nine billion U.S. dollars, followed by four billion U.S. dollars in the United Arab Emirates.
Currently, apart from a robust economic growth, the region’s business environment is expected to change radically with the emergence of new business models. This is particularly prominent in the healthcare industry, which is undergoing a digital transformation to make healthcare more accessible.
The KSA accounts for about 60% of the healthcare industry’s revenue in the Gulf Cooperation Council (GCC).
With rising awareness among consumers and the shortage of skilled resources, demand for technology and digitization in the healthcare industry is higher than ever.
Upgrading healthcare infrastructure and investing in start-ups will open doors for competition and make quality healthcare more affordable.