Saudi fintech Hakbah raises $5.1mln to propel innovation, growth

Hakbah, a Saudi-based fintech savings platform, has successfully raised $5.1 million in a Series A funding round led by UAE-headquartered venture capital firm VentureSouq.

The fresh capital infusion will be used to augment product development, with a strong focus on machine learning and developing the startup’s integrable savings engine, the fintech said in a statement on Wednesday.

Hakbah expects to enter two regional markets shortly via a partnership or a strategic alliance.

This funding round saw the entry of new backers – M-Capital and Bunat Ventures – joining established investors – Global Ventures and Aditum Investment Management Limited.

To date, Hakbah’s cumulative funding stands at $9 million.

Hakbah operates in Saudi Arabia’s $216 billion savings market and has recorded an 18x increase in total savings under management and a 4x increase in revenue this year. The growth follows the closing of several blue-chip partnerships with companies, including Flynas, a low-cost airline in Saudi Arabia.

“We’re working to build a savings platform via which individuals can save easily, quickly, collectively, and with impact – on our mission to double the individuals’ savings ratio in Saudi Arabia by 2025,” Naif AbuSaida, Founder of Hakbah, said.

Saudi fintech has a customer base of over 500,000 users of which 70% are between 21 and 35 years old.

Source: Zawya