Saudi Fintech Madfu Closes Successful Pre-Seed Investment Round

Saudi financial technology sector, Madfu, a local fintech company specializing in 'Buy Now, Pay Later' services in the entertainment, tourism, and e-commerce domains, has successfully closed a pre-seed investment round securing 12 million Saudi riyals.

The funding round witnessed active participation from multiple investors, signaling confidence in Madfu's business model.

Founded in 2023, Madfu received approval from the Saudi Central Bank (SAMA) to operate deferred payment activities in the kingdom, specifically targeting the tourism, entertainment, and e-commerce sectors.

The company also facilitates product installment plans structured over three payments.

Notably, Madfu adheres to Sharia regulations, ensuring transparency by refraining from imposing hidden fees or additional costs on its customers.

The Saudi Central Bank's 2022 Financial Technology Report underscored a substantial surge in the adoption of 'Buy Now, Pay Later' services during the initial three years.

The user base exceeded 10 million, and the number of stores offering the service surpassed 30,000 by the close of 2022.

With the goal of expanding its reach and catering to a broader array of sectors, Madfu aims to capitalize on the growing demand for 'Buy Now, Pay Later' services, thereby boosting sales for participating store owners.

Abdullah Al Brahim, Co-founder and Chairman of Madfu, expressed satisfaction at the successful funding round, emphasizing that it positions Madfu to provide exceptional services to its customers in the realms of entertainment, tourism, and online purchases within the kingdom.

Al Brahim also highlighted Madfu's commitment to contributing to Saudi Arabia's prominence in the financial technology sector, with a focus on technology-driven financial services that empower individuals and society.

In a recent development, Madfu announced a collaborative agreement with the Saudi Tourism Authority, aiming to market products in the tourism and entertainment sectors.

This strategic partnership aligns with Madfu's broader objective of promoting the spirit of Saudi Arabia and enhancing its presence in key sectors.

Source: EntArabi