Saudi-Based Fintech Platform Hakbah Raises $5.1 Million Series A Round
The Series A funds will be utilised for product development, focusing on Machine Learning and the platform's savings engine.
Saudi fintech savings platform Hakbah has raised $5.1 million in its Series A funding round, led by VentureSouq, a MENA-based venture capital firm. Other participants include new investors M-Capital and Bunat Ventures, along with existing investors Global Ventures and Aditum Investment Management Ltd.
Hakbah has experienced significant growth in 2023, boasting an 18x increase in Total Savings Under Management and a 4x rise in revenue. With over 500,000 users, predominantly aged between 21 and 35 years old, Hakbah has formed partnerships with key entities such as flynas, the national low-cost airline in Saudi Arabia and the Middle East.
The Series A funds will be utilised for product development, focusing on Machine Learning and enhancing the platform's easily integrable savings engine. The capital will also support talent acquisition to strengthen Hakbah's position as the leading savings platform in the region. The company plans to enter two regional markets soon, either through partnerships or strategic alliances. Hakbah's social savings platform aims to address the Middle East savings crisis, aligning with the goals of Saudi Vision 2030 and the country's Financial Sector Development Program. Notably, 70% of Saudi citizens lack emergency savings, and the household savings rate averages just 1.6%.
"We’re working to build a savings platform through which individuals can save easily, quickly, collectively, and with impact on our mission to double the individuals' savings ratio in Saudi Arabia by 2025,” Naif AbuSaida, Founder of Hakbah, tells StartupScene. “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."
Hakbah's model addresses financial inclusion by digitising traditional group savings (Jameya), facilitating purpose-driven savings, and enhancing financial literacy. This approach aligns with the broader global trend of savings groups, present in over 60 countries.
