Hakbah Secures $5.1 Million in Series A Funding Led by VentureSouq

Hakbah Secures $5.1 Million in Series A Funding Led by VentureSouq

By Press Release, 21 December 2023

Hakbah, the leading Saudi-based fintech savings platform, announces its successful $5.1 million Series A fundraise.

The funding round was led by VentureSouq, the MENA-based venture capital firm with a global portfolio.

Also participating were new investors M-Capital and Bunat Ventures and existing investors Global Ventures and Aditum Investment Management Ltd.

Hakbah is one of MENA’s fastest-growing startups and operates in KSA’s $216 billion savings market.

The company has recorded an 18x increase in total savings under management and a 4x increase in revenue this year, struck several blue-chip partnerships with the likes of Flynas, the national low-cost airline in Saudi Arabia and the Middle East, and has a customer base of over 500,000 users (of which 70% are between 21 and 35 years old).

Proceeds from the Series A funding round will be used for further product development, with a strong focus on machine learning and further developing the company’s easily integrable savings engine.

Capital will be ring-fenced to attract and nurture the region’s best talent and strengthen Hakbah’s position as the region’s leading savings platform.

The company also anticipates entering two regional markets in the near future, either via partnership or a strategic alliance.

Hakbah’s social savings platform, which strengthens financial inclusion and fully integrates with any banking system in less than a week - includes the digitization of traditional group savings (Jameya) with the purpose of spending on financial needs.

Popular in over 60 countries worldwide, savings groups are a popular and traditional savings behaviour.

Hakbah’s users prioritise total needs over time and share the pool of money - which is rotated amongst them.

This elevates traditional savings behaviour, allows saving for purpose, and increases financial literacy.

The company also anticipates entering two regional markets in the near future, either via partnership or a strategic alliance.

Hakbah’s model tackles the Middle East savings crisis.

Savings are a key strategic objective in ‘Saudi Vision 2030’ and critical to the country’s Financial Sector Development Programme. 70% of Saudi citizens are without emergency savings, while the country’s household savings rate averages just 1.6%. 

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 organisations such as the Saudi Central Bank, the Digital Government Authority, Monsha'at, the National Technology Development Programme, 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 startups and to work with Naif and his team in their mission to modernise 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.”

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