Dubai-based insurtech startup Mantas has announced the successful closure of a $1.77 million seed funding round to develop parametric insurance policies protecting businesses against cloud service outages. The company, founded by software engineer Basil Mimi two years ago, is now entering negotiations with its first customers as it prepares to launch its cloud downtime insurance products in the coming weeks.
The funding round was backed by Nuwa Capital, Suhail Ventures, Plus VC, OQAL Angel Syndicate, and several strategic angel investors. According to the company, the capital will support the development of insurance solutions targeting businesses that rely heavily on cloud computing services, including e-commerce platforms, food delivery services, and public sector organizations.
Understanding Parametric Insurance for Cloud Outages
Mantas offers parametric insurance policies that automatically trigger predetermined payouts when cloud service disruptions occur. Unlike traditional business interruption insurance, which can take months or years to settle claims, parametric insurance provides immediate financial compensation once a qualifying outage is detected.
The concept addresses a growing vulnerability for digital-first businesses. When cloud computing providers experience downtime, dependent organizations lose revenue, face reputational damage, and risk customer attrition, even though the technical failure lies beyond their control.
Technology-Driven Monitoring and Prevention
The company employs specialized software to monitor policyholders’ digital infrastructure in real-time, enabling immediate identification of service interruptions. Additionally, Mantas acquires data from cloud computing providers and data center operators to enhance its coverage accuracy.
However, the startup is also developing predictive analytics capabilities designed to warn customers before outages occur. This proactive approach distinguishes the company’s offering from purely reactive insurance models.
Emerging Market with Growing Competition
Meanwhile, Mantas enters a nascent but expanding marketplace for cloud downtime insurance. New York-based Parametrix Insurance, the sector’s current leader, recently completed a $27 million Series B funding round in late 2024. German reinsurance giant Hannover Re has also established a presence in this specialized insurance category.
In contrast to traditional cyber insurance products, parametric policies for cloud outages eliminate lengthy claims processes and loss adjustment negotiations. “The idea is to provide fast and transparent liquidity that allows businesses to respond, recover and protect customer trust,” Mimi stated, explaining the company’s value proposition.
Target Markets and Strategic Focus
According to company representatives, Mantas has conducted promising discussions with insurers and intermediaries across North America and the Middle East. These regions represent strategic priorities due to distinct market conditions favoring cloud downtime insurance adoption.
The United States has experienced multiple high-profile cloud service failures over the past year, raising awareness of infrastructure vulnerabilities. Meanwhile, Middle Eastern governments and enterprises are undergoing rapid digitalization, creating increased dependency on cloud services and corresponding insurance needs.
Arnav Danthi, principal at Nuwa Capital, emphasized the financial implications of service interruptions. “Downtime is often treated as a technical issue, but for digital businesses it’s increasingly a financial one,” Danthi explained, noting that Mantas’ approach connects insurance coverage directly to actual infrastructure performance rather than theoretical specifications.
Industry Recognition and Future Outlook
Hasan Haider, founder and managing partner of Plus VC, characterized the startup as “redefining cyber insurance through its technology-driven model, combining tailored coverage with predictive analytics to address one of today’s most critical risks—cloud downtime.”
The company name references the manta ray, inspired by founder Mimi’s passion for diving. The word also means blanket, reflecting the company’s mission to provide protective coverage currently unavailable to most organizations dependent on cloud infrastructure.
Mantas expects to begin selling its parametric insurance policies within the coming weeks as negotiations with initial customers progress. The timeline for broader market expansion remains subject to regulatory approvals and partnership agreements in target jurisdictions.
