VentureSouq-led Series A Fuels Hakbah’s Ambitious Expansion and Innovation. Saudi-based fintech powerhouse, Hakbah, has successfully closed a noteworthy $5.1 million Series A funding round, underscoring its position as a dominant player in the regional savings market. The funding was spearheaded by VentureSouq, a prominent MENA-based venture capital firm renowned for its global portfolio. New investors, M-Capital and Bunat Ventures, joined the round, along with continued support from existing backers Global Ventures and Aditum Investment Management Ltd.
Impressive Growth Metrics and Strategic Alliances
Hakbah, recognized as one of the fastest-growing startups in the MENA region, operates within Saudi Arabia’s substantial $216 billion savings market. In the current year alone, the company has witnessed an extraordinary 18x surge in Total Savings Under Management and a quadrupling of its revenue. Cementing its market presence, and will support the bank-fintech partnership potential opportunity. Hakbah has formed strategic alliances with key players such as flynas, the national low-cost airline in Saudi Arabia and the Middle East. Boasting a user base exceeding 500,000, with 70% falling in the 21-35 age bracket, Hakbah has emerged as a frontrunner in the sector.
Innovative Approach and Future Expansion Plans
Revolutionizing Savings with Social Finance
Hakbah’s unique social savings platform, a digital adaptation of traditional group savings (Jameya), addresses financial inclusion while seamlessly integrating with any banking system in less than a week. Users engage in a collective pool of funds, promoting a purpose-driven savings culture. The company’s success is attributed to its global approach to savings groups, a popular practice in over 60 countries. By prioritizing collective financial goals over time, Hakbah enhances traditional savings behaviors and fosters increased financial literacy.
Series A Proceeds Allocated for Strategic Growth
The newly secured funds from the Series A round will be instrumental in driving Hakbah’s next phase of growth. With a strong emphasis on product development, particularly leveraging machine learning, the company aims to fortify its easily integrable savings engine. In addition, funds will be allocated to attract top talent in the region, solidifying Hakbah’s standing as the leading savings platform. The company also has its sights set on entering two regional markets in the near future, exploring avenues such as partnerships or strategic alliances.
Addressing the Middle East Savings Crisis
Hakbah’s overarching mission aligns with the objectives outlined in ‘Saudi Vision 2030’ and the country’s Financial Sector Development Program. With 70% of Saudi citizens lacking emergency savings and the household savings rate averaging just 1.6%, Hakbah’s innovative model addresses the pressing savings crisis in the Middle East, contributing to the region’s economic development.
Naif AbuSaida, The Founder of Hakbah, said:
“We are grateful and happy to announce our Series A funding round and to enjoy the trust of both our new and existing investors. This demonstrates our success in delivering Hakbah’s strategic goals and will help to accelerate our growth plans and financial stability for individuals.
“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. With the sizeable Savings Groups and Household Savings markets, and 60% of the population under 30, there is a significant opportunity for efficient, digital solutions to transform Saudi Arabia’s savings habits.
The support from esteemed organizations such as the Saudi Central Bank, Digital Government Authority, Monsha’at, National Technology Development Program, and Saudi Fintech is vital in our pursuit of growth and innovation. By leveraging machine learning and customer behaviours, we aim to develop cutting-edge savings products that cater to the unique needs of our customers.”
Musaab Hakami, General Partner – Fintech, of VentureSouq, said:
“We are thrilled to lead this funding round in one of MENA’s most exciting start-ups, and to work with Naif and his team in their mission to modernize financial savings and increase financial inclusion. Hakbah has a truly innovative product, a compelling market, and a track record of delivering on its growth promises. We look forward to supporting the Company’s continued scaling.”
In summary, Hakbah’s successful Series A funding marks a pivotal moment for the fintech sector in the MENA region, positioning the company for strategic expansion and continued innovation in the dynamic landscape of digital savings platforms.
To know more about other trending usecases in the US financial services industry, like Generative AI, Open Banking, Buy Now Pay Later (BNPL), explore our other insights.
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