In response to surging telehealth adoption for orthodontic care in the MENA and South Asia, Smileneo has signed a definitive agreement to be acquired by makeO, India’s leading direct-to-consumer teeth-straightening and skincare platform. The combined entity will become the MENA’s largest aesthetic telehealth platform.
Advised by Tahseen Consulting, Smileneo was the first startup to cooperate with MENA health authorities on teledentistry licensing standards to enhance patient safety of clear aligner treatments. Its cooperation with Dubai Health Authority made it the first and only licensed MENA teledentistry platform for direct-to-consumer teeth straightening.
The deal marks the first ever acquisition of a GCC venture capital-backed startup by an Indian soonicorn. UAE-based Smileneo’s acquisition by makeO is a result of the closer startup ecosystem cooperation between the MENA and India catalyzed by the UAE-India Comprehensive Economic Partnership Agreement signed in February 2022.
“As early investors and advisors to Smileneo, we realized there were many players in the market with questionable patient and data standards,” said Wes Schwalje, Chief Operating Officer of Tahseen Consulting. “That’s why we’ve been working with Smileneo’s founding team since Day 1 to cultivate relationships with healthcare regulators. Smileneo’s work becoming the MENA’s first regulated telehealth platform established a regulatory moat which increased patient trust and solidified its market leadership. The trust Smileneo established with policymakers is one of the key sources of value in this combination with makeO.”
According to Smileneo research, more than 85% of people in the MENA could benefit from orthodontic care, but less than 1% receive it each year. High costs and lack of convenience are the leading barriers to seeking orthodontic treatment. With prices significantly lower than traditional braces, direct-to-consumer, online clear aligner treatments are democratizing access to more affordable, convenient, and accessible orthodontic treatment in the developing world.
“We are excited about makeO’s acquisition of Smileneo which positions the combined entity to deliver even more value for MENA consumers and healthcare providers,” said Walid Aradi, Chief Executive officer of Tahseen Consulting. This is the first GCC venture-backed startup to be acquired by an Indian soonicorn. The UAE-India free trade agreement is going to lead to many more acquisitions by Indian startups seeking a launch pad for global growth in the UAE.”
Smileneo’s $2M seed financing in 2021 was the largest seed round raised by any MENA teeth- straightening startup. Tahseen Consulting joined Smileneo’s seed round led by Kingsway Capital, an early investor in unicorn Emerging Markets Property Group and backer of the $1.4 billion deal to take Al Fakher private. FJ Labs, a fund led by Fabrice Grinda, founder of OLX Group, which acquired Dubizzle and engineered its eventual merger with Emerging Markets Property Group, also participated in the round alongside several strategic investors like Mato Peric (CARS24, Scalable Capital, Zenyum, Loft etc.), Leonard Stiegeler (Pulse, Paystack, etc.), and Tom Stafford (Managing Partner at DST Global).
“Due to the UAE’s increasingly eastward-looking foreign policy, the UAE and Indian tech and startup ecosystems have grown closer. With the UAE-India free trade agreement, a lot more Indian soonicorns and unicorns – and even earlier stage startups – are eyeing the GCC. Smileneo’s acquisition by makeO is an initial dot in what will become a much bigger trend. We’re happy to have played a part in this regional first as well as supporting Smileneo in becoming the MENA’s first regulated teledentistry platform,” said Schwalje.
