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Insurtech Zenda.la Tackle Issue in Mexico as 94% of Mexicans are Without Health Insurance

It is estimated that only approximately 6% of the Mexican population has access to private health insurance. Furthermore, in Mexico, around 12 million people are self-employed; therefore, they are not supported by a company in case of illness or accident. Given the low penetration rates of private healthcare, Mexicans are often left turning to friends, family, or third parties for loans to offset medical expenses, which can be financially straining. Additionally, a lack of education around the extensive benefits of preventative healthcare also contributes to this debilitating cycle.

To tackle this issue, Zenda.la has created a digital platform that specializes in providing health and prevention insurance plans in a simple, flexible, and reliable way. Zenda.la believes that all people should have access to quality insurance according to their needs and economic standing; therefore, the startup has made it their mission to enable said access through a business model that supports and sustains this level of care for all.

Diego Muradás, CEO of Zenda.la reported the closing of its Seed investment round, attracting $2million of venture capital from Mexican and international funds, led by Angel Ventures. Muradás comments, “What is the main reason that people do not purchase insurance for medical and prevention related expenses? The most common answer is that the coverage offered is so expensive that only people with high purchasing power have access. We are determined to change that.

“We’ve now got the fuel needed to continue developing and growing, and thus help more people to enter what we call our Protection Circle. We are ready to start this growth phase ”, he assured. This model is designed to be easily scalable and replicable, but: “we are certain that real growth can only come with amazing teamwork. We are backed by the reinsurer SwissRe and Prevem Seguros, and we have achieved alliances with companies such as Credilikeme, Destácame and recently Jefa, who are equally committed to the users of their platforms and seek to protect their physical and financial health. In order to continue to grow and impact more others, we need those who value investing in people, so we are actively looking for business partners,” explained Muradás.

Hernán Fernández, Managing Partner at Angel Ventures and Seed round lead comments, “Zenda.la is tackling a massive opportunity with a proven team. This is the kind of opportunity that excites VCs everywhere, and we have an amazing lineup of co-investors to attest to this”, said. “94% of Mexicans have no health insurance, and Zenda.la provides a solution with a truly scalable and exportable model. We were sold on the first meeting and are excited for what is to come”, he added.

The co-investor funds that have also invested in Zenda.la future growth include: K50 Ventures, Clout Capital, Magma Partners, G2 Momentum Capital, Lotux VC, as well as other angel investors.

“Today, more than ever, there is a clear need to have a feeling of security around physical, mental, and financial health. The experience that we’ve had in recent months is that we all need to have a plan to help us deal with moments of crisis”, said Eva Sander, co-founder of Zenda.la.

Zenda.la believes in keeping the customer at the center of the business. The lessons the startup obtained throughout this past year allowed them to refine their product and platform in the context of user needs and concerns, which has been translated into new functionalities to enrich user experience. With the closing of this round, Zenda.la prepares to ramp up future growth and launch new initiatives; however, keeping the customer first will always remain constant.

Author

  • Francis is a junior journalist with a BA in Classical Civilization, he has a specialist interest in North and South America.

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