In H1 2024, fintech funding in Saudi Arabia reached US$62 million, representing a staggering 360% increase compared to the same period last year, a new report by Magnitt and SVC reveals.
This significant boost came through nine funding rounds, supporting startups in the verticals of wealthtech, payments and alternative financing, among others.
In this article, we look at some of the largest funding rounds secured by Saudi fintech startups in H1 2024, examining their value propositions, recent successes, and growth strategies.
Moyasar – US$21 million
Moyasar, a digital payment startup, secured US$21 million in a seed funding round in March. The round, the largest rounds of H1 2024, will help Moyasar continue to develop and enhance its product offerings, which include a range of payment options such as Mada, Visa, Mastercard, American Express, Apple Pay, and STCPay.
Founded in 2016, Moyasar specializes in providing secure and easy-to-use payment solutions tailored to the needs of the local market. The company has designed and developed a variety of financial payment products to enable stores and electronic platforms to manage all payment requirements digitally, including electronic payments portals, billing services, subscriptions, settlement of payments on electronic platforms, and management of payments in partnerships with national and international payment networks. Its software interfaces are known for their ease of use and flexibility, supported by a dedicated IT team based in Saudi Arabia.
Moyasar’s strategic focus is on becoming the top choice for e-commerce practitioners by continuously improving its electronic payment solutions.
Abyan Capital – US$18 million
Abyan Capital, a robo-advisory startup, closed in May a US$18 million Series A round led by STV with participation from Wa’ed Ventures and RZM Investment. The round, the second largest in Saudi Arabia of H1 2024, will be used to enhance Abyan Capital’s platform, expand its suite of financial products, and accelerate its market penetration across the investment solution value-chain.
Founded in 2022, Abyan Capital offers Sharia-compliant financial services that allow users to manage their investments efficiently, optimize asset allocations, and achieve their financial goals with ease. The company’s platform provides a range of investment products, including portfolios for children, recurring investments via cards, and high-yield savings options. It aims to make personal investment accessible to everyone in Saudi Arabia, regardless of their financial literacy.
Abyan Capital says it has processed over 4 million trades and distributed more than 600,000 dividends. It claims more than SAR 1.4 billion (US$373 million) in deposits and over 100,000 managed portfolios.
Simplified Financial Solutions Company (SiFi) – US$10 million
Simplified Financial Solutions Company (SiFi) secured in May a US$10 million seed funding round led by Sanabil Investments, a wholly-owned company by the Public Investment Fund (PIF), and RAED Ventures. The round, the third largest in Saudi Arabia during H1 2024, will enable SiFi to enhance its offerings and reinforce its position as the leading spend management solution in the country, Ahmed Al-Hakbani, CEO of SiFi, told Arab News in June.
Founded in 2021, SiFi offers a spend management platform that provides businesses in the Middle East and North Africa (MENA) region with a wide range of innovative solutions. These include smart corporate cards, real-time insights into corporate spending, and automated workflows for managing expenses.
Through the SiFi mobile app, companies can quickly pay expenses, easily issue corporate cards, and streamline expense reporting by attaching receipts and memos. The platform’s advanced automation features further empower businesses to operate more effectively.
SiFi claims it is the first expense management fintech in Saudi Arabia to receive licensing from the Saudi Central Bank (SAMA), and says it has earned the trust of over 100 customers.
Buildnow – US$9.4 million
Buildnow, a “build now, pay later” solution, raised in March a US$9.4 million seed finding. The round, the fourth largest in Saudi Arabia of H1 2024, comprised a mix of equity (US$6.5 million) and debt (US$2.9 million) and was co-led by Raed Ventures and Khwarizmi Ventures, with participation from international VC’s and key local angels, including Abdulla Elyas, co-founder of Careem.
Founded in 2022, Buildnow provides a platform that makes purchasing materials easier and more flexible for businesses. The company allows buyers to acquire materials on credit, meaning they can pay for them later, while ensuring that suppliers receive their payments upfront in cash. It uses a sophisticated credit management platform that gathers and analyzes various data points about the buyers, including their financial health, legal status, and reputation in the market to assess credit risk and offer customized credit terms. At the same time, Buildnow ensures that small and medium-sized suppliers are paid promptly, helping them maintain steady cash flow and grow their businesses.
Buildnow claims it grew sixfold in 2023 and has supplied over 50,000 tonnes of raw materials, facilitating business between more than 250 small and medium-sized enterprises (SMEs). The startup said it will use the proceeds from its seed funding round to grow its team and strengthen its position in the construction SME supply chain.
Madfu – US$3.2 million
Madfu, a buy now, pay later (BNPL) platform, raised a US$3.2 million pre-seed round funding in January. The round, the fifth largest in Saudi Arabia of H1 2024, will be used to enhance its offerings and expand its reach by catering to a wider range of sectors.
Founded in 2023, Madfu provides BNPL services in the entertainment, tourism, and e-commerce industries. The startup allows customers to purchase products or services and pay for them later, often in three installments, without any hidden fees or additional costs, all in compliance with Sharia regulations. It received approval from SAMA last year.
Recently, Madfu entered into a strategic partnership with the Saudi Tourism Authority to market products in the tourism and entertainment sectors, further enhancing its presence in these key industries.
Rakeez Capital – US$2 million
Rakeez Capital, a fintech specialized in providing innovative financing solutions for investors and companies, secured in March a US$2 million seed funding round. The round, the sixth largest in Saudi Arabia of H1 2024, was led by Core Vision Investments and will be used to further develop the startup’s financial solutions, advance its artificial intelligence (AI) technologies and explore more opportunities in the market, Rakeez Capital says.
Launched in 2023, Rakeez Capital provides financing options for companies and real estate developers through the issuance of Sukuk. Sukuk are Islamic financial certificates that are similar to bonds but with more flexibility and favorable terms compared to traditional banking options. They allow companies, particularly in the real estate sector, to access diverse and tailored financing options.
Rabeh Financial – US$800,000
Rabeh Financial, a startup specializing in crowdfunding and equity exchange services, secured a US$800,000 seed funding round in March. The round, the seventh largest of H1 2024, was closed during LEAP 2024 in collaboration with Mjalis Investment Company and several angel investors, giving the startup a valuation of US$8 million.
Founded in 2022, Rabeh Financial provides services that enable investors and entrepreneurs to easily exchange and evaluate investment opportunities. The company leverages modern data analysis technologies and AI to enhance the experience of exchanging ownership and knowledge.
Rabeh Financial aims to create a secondary market for exchanging ownership, knowledge, and consultancy, which would increase the chances of success for investors while reducing risks. The company also plans to launch new technical features to reach investors both within and outside the country in various fields, including real estate, and offer a secure tech-driven working environment that complies with regulatory legislations to attract investments and drive business sector growth.
Featured image credit: edited from pixabay
