Femtech's uphill struggle

 🤰 The fertility journey

Every year, 30 million women worldwide struggle to get pregnant. 

In Gulf countries, infertility rates are the highest in the world - at almost 40%.

For women, this journey is unimaginably difficult.

Filled with stress, emotional pain, and high costs. 

Not to mention constant lab visits for regular screening.

Marina Sol is determined to give women back control of their fertility journey.

Inspired by her mother’s 50-year career treating women's hormone and reproductive disorders, and being one of the first IVF babies in her home country, Marina founded Diagnio. 

Diagnio’s first product empowers women to manage their health from home. 

It’s a medical device that attaches to your phone and works with just a drop of saliva. 

The app's image recognition software analyses estrogen patterns to advise if it's a good day for conception.

It can also provide insights on postpartum recovery and menopause. 

Users can chat with an AI bot to learn about hormones, consult with a doctor online, and access stress and anxiety assessments for women trying to conceive.

Marina is one of many founders in the MENA region dedicated to advancing women's health through femtech.

It’s a colossal market.

By 2027, the global industry is expected by worth more than $1 trillion.

And the femtech market in the MENA region alone is projected to reach $3.8 billion by 2031.

🚺 Femtech

The term “FemTech” was first coined in 2016 by Ida Tin, CEO and founder of the popular menstrual health app, Clue.

It describes tech and innovation aimed at tackling health issues that primarily or disproportionately affect women.

Key areas include menopause, bone health, abortion, brain health, cardiovascular health, and reproductive health.

In 2021, femtech businesses in the MENA region accounted for 5.8% ($1.7 billion) of the $29 billion invested in digital health worldwide.

The region is home to several femtech startups like Diagnio, Omooma, and Nabta Health, each addressing different aspects of women's health, from reproductive health to menopause management.

By the end of 2021, the MENA region's share of global femtech companies reached 7%, with about 7% of these based in the UAE.

But several challenges remain, from securing investment to overcoming cultural barriers.

 🚧 Regional barriers and challenges

In many Middle Eastern societies, stigmas around reproductive and sexual health, like infertility, menstrual health, and menopause, cause women to feel isolated and judged.

But things are finally starting to change.

For example, efforts are underway to destigmatise menopause, which is called ‘the age of despair’ in Arabic.

This stigma delays women from seeking help and managing symptoms.

Femtech companies also have to grapple with health insurance systems that often don't cover preventive care or female-specific needs.

Which makes it hard for women to find adequate healthcare and supportive workplaces.

In fact, currently, 1 in 4 women consider leaving their jobs due to poorly managed perimenopausal symptoms.

In the UAE, menopause is classified as a pre-existing condition, leading to higher insurance premiums for affected women.

Effective, affordable health management is crucial for women to achieve their full potential and advance in their professional lives.

Not to mention that addressing issues like chronic illnesses and reproductive health can reduce healthcare costs and lost productivity, helping to close the gender pay gap.

💸 Funding

Despite women accounting for half of the world's population, research focusing solely on women’s health issues receives less funding.

In the MENA region, the funding landscape for femtech is pretty dire.

A lack of funding for women’s health focused research is compounded by the fact that femtech businesses are in the main, founded by women.

Last year, female-founded companies in MENA received only 0.47% of total investments.

Unconscious gender bias is also a major challenge.

Most investors are men, which leads to a gap in understanding femtech products.

Despite the tide beginning to slowly turn, femtech funding still significantly lags behind healthtech.

For example, Nabta, one of the most funded femtech startup in the region, has raised $2.5 million - only 3% of what healthtech giant Vezeeta has secured.

🧗‍♀️ An uphill battle

Sophie Smith, moved to the Middle East when she was expecting her first child.

She quickly realised that women in emerging markets experienced worse health outcomes than elsewhere.

Nabta Health was born to bridge these gaps using a hybrid of digital and traditional healthcare.

The company provides health insights and diagnostic services focused on fertility, conception, and overall female health.

Its app and wearables track sleep, activity, and menstrual cycles, offering personalised recommendations and early disease detection.

Using AI and machine learning, Nabta tailors health profiles and predicts risks, providing evidence-based advice from dieticians, psychologists, and physiotherapists.

But raising funding has been painstakingly difficult.

The VC ecosystem in the Middle East showed little interest.

Despite Nabta’s traction and unique insights, local funds said it was too early to invest and suggested relocating to the US or UK for success.

But Sophie persisted.

And it paid off.

Last year, Nabta closed a $1.5 million seed round led by Basim Anwer of Regionality Group, with angel investors Priya Oberoi (Goddess Gaia Ventures), Sarper Tanli (TVM Capital Healthcare), and Nadia Mannell (Seed South Capital) participating.

It’s used this capital to acquire its first clinic, launch its full hybrid model in the UAE, and transition from R&D into commercialisation.

Sophie is already in the process of closing a Series A round, which will help drive expansion and consolidate its footprint in the UAE.

Later this year, Nabta will also expand to Saudi Arabia, opening a women’s health Research and Development Institute at KACST in Riyadh.

It will be the first of its kind in the region.

 🧕 What’s next?

More funding is needed for femtech startups in MENA.

Simple as.

There are encouraging signs that regional investor interest in femtech is growing.

• Late last year, Aramco's VC fund, Prosperity7 Ventures, invested $14 million in Chinese femtech Cispoly Bio-Tech.

• MENA-based VC Flat6Labs launched the 2nd cycle of their Women’s Health Accelerator Programme in March.

The region is starting to come around.

For the sake of half the population, we hope it gets a move on.

💪 Inspiring FemTech Leaders

Mira Mousa, a Postdoctoral Scientist at Khalifa University in Abu Dhabi, regularly speaks and writes about the importance of women's health advancements in the MENA region.

Malin Frithiofsson, CEO of Daya, leads the first global femtech venture studio in Sweden, bringing a cool and global perspective.

Chanda Lokendra is the founder of Lizzom.

Chanda Lokendra is a midwife educator with Omooma.

Noor Jaber Chehayeb is the founder of Nawat Health in Lebanon

📖 Recommended Reading

📌 Why femtech will just keep growing - hear from women’s health advocate Bethany Corbin. 

📌 Standing up and speaking out - an insightful report by the first regional association MENA-Rosa, supporting women with HIV. 

📌 Unveiling the challenges of women’s reproductive health - breaking the silence on women’s well-being.

👋 Message from the team

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