Financial software startup Wafeq raises $3M led by Raed Ventures

Accounting platform Wafeq has raised $3 million in seed funding led by Raed Ventures. The round also saw participation from Wamda Capital.

The Dubai-headquartered company will use the funding to build new products and focus on customer acquisition and hiring across technical and non-technical roles. The startup will also look at entering Egypt and double down its presence in the UAE and Saudi Arabia.

In a press note shared by the company, Nadim Alameddine, CEO & Founder, Wafeq, said, SMEs continue to power the engines of economy. However, as they grow, they need to comply with new accounting regulations. Wafeq aims at simplifying accounting compliances for business accountants and owners. The startup is built for the unmet finance and accounting needs of SMEs in the region.

Businesses using Wafeq create over 630,000 invoices every month, with total monthly invoiced amounts exceeding $117 million (SAR 440 million).

"With the digitisation of accounting practices in Saudi Arabia and Egypt and the introduction of corporate tax in the UAE, the three largest economies in North Africa and the GCC are undergoing a significant shift in financial reporting. Wafeq meets every requirement of Saudi Arabia’s Zakat, Tax, and Customs Authority (ZATCA), the UAE's Federal Tax Authority, and soon the Egyptian Tax Authority," stated the note.

The platform helps businesses stay compliant not just with existing laws, but even the new ones, without having to shift focus of their core business. It also streamlines the accounting process for its clients--from building records, tracking sales and invoicing, to automating bank transactions and generating reports.

"The digitalisation of accounting practices will transform how SMEs here operate, increasing operational transparency, creating efficiencies, and contributing to economic growth," said Talal Alasmari, Founding Partner, Raed Ventures.

Wafeq also offers a standalone e-invoicing API enabling business to stay compliant with e-invoicing regulations while maintaining their existing accounting software. This solution will allow startups and large businesses who require a reliable third party to manage the complexities of e-invoicing, which legacy solutions cannot meet. 

"Wafeq’s team and vision for helping businesses in the Middle East to streamline their accounting processes is unparalleled. We are excited about what the platform can achieve for businesses in the region and their ability to make a meaningful impact,” said Fadi Ghandour, Managing Partner, Wamda Capital. 

Wafeq works for companies like Tabby, Lean Technologies, Fenix, PiFlow, Ziina, and Invygo. It has also expanded to long-tail SMEs in a diverse range of industries, including contracting, food and beverage, ecommerce, retail, and more.