Dubai-based financial comparison startup yallacompare has secured $8 million in a financing round led by existing investors STC Ventures and Wamda Capital, according to a statement.
Argo Ventures, the investment arm of insurance company Argo Group, participated in the round as a new investor.
The startup had earlier raised $3.5 million in May 2017. Proceeds from the latest investment will be used to expand its operations to Egypt by the end of the first quarter of 2019 while also increasing its market share in the UAE and Kuwait.
“Financial comparison websites in the region is still a nascent business. A big drive is to get people online, there is still a long way to go in bringing offline customers online,” said Jonathan Rawling, CFO of yallacompare.
According to the firm, consumers in the region are comfortable comparing prices online, but many still prefer to conclude the purchase offline, usually through phone calls. However, yallacompare said it has also seen the number of online buyers increase by four times compared to 2017.
The company is working with insurance companies to automate more of the processes and interactions with customers.
Oleg Illichev, head, Argo Ventures, said: “Our mission is to discover and empower entrepreneurs who are reinventing financial services. We believe that yallacompare’s goal of educating and simplifying the purchase of financial products aligns nicely with our beliefs.”
Other similar companies in the Middle East who have also bagged fundraising include Aqeed which closed a $18-million Series A round and Souqalmal with a $10-million Series B round in 2017.