Saudi fintech Hakbah raises $2M in pre-Series A round
The Saudi-based fintech is attempting to digitise the $6 billion Rotating Savings and Credit Association (ROSCA) market in Saudi Arabia and beyond.
Saudi-based fintech savings platform has raised $2 million in its pre-Series A funding round. The round was led by Global Ventures with participation from Aditum Investment Management.
The fresh funds would be used to increase Hakbah’s presence in Saudi Arabia, improve user experience, and its savings engine algorithm, the company said in a statement.
Since being founded in 2018 by Dimitar Kazakov and Naif AbuSaida, Hakbah has helped 18,000 customers save over $35 million. It has about 120,000 active and verified customers on its platform till date.
The Saudi-based fintech aims to take on the savings crisis in the Middle East by digitising financial habits and leveraging data to understand needs and behaviours.
While savings groups are the most popular form of alternative borrowing for unbanked groups in emerging economies, the user experience is not always seamless, Noor Sweid, Managing Partner of Global Ventures, said.
Inefficiencies like lack of a proper system to identify and manage savings groups, and lack of transparency, flexibility, and consistency in payments make the user experience difficult.
This is where Hakbah steps in and attempts to digitise the $6 billion Rotating Savings and Credit Association (ROSCA) market in Saudi Arabia and beyond, said Sweid.
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Edited by Akanksha Sarma