Riyadh, Saudi Arabia – 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 start-ups, and operates in KSA’s $216 billion savings market. The Company has recorded a 18x increase in Total Savings Under Management and 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, has a customer base of over 500,000 users (of which 70% are between 21-35 years old).

Proceeds of 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 to spend on financial needs. Popular in over 60 countries worldwide, savings groups are a popular and traditional savings behavior. Hakbah’s users prioritize total needs over time and share the pool of money - which is rotated amongst them. This elevates traditional savings behavior, 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 Program. 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 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.”

Further information
Hakbah - Media Team
Email: j.lawsondick@thoburns.com

About Hakbah

Hakbah is a savings platform which allows users to save and access funds via social savings. Hakbah makes savings for purpose accessible and beneficial to everyone, especially the underbanked.

Hakbah empowers people to take control of their social savings without hassle. Hakbah is permitted by the Saudi Central Bank (SAMA) to test its innovative services within the Regulatory Sandbox environment and graduated from the DIFC FinTech Hive Accelerator Program in 2019.

To date, and including the latest Series A fundraise, Hakbah has raised US$9 million.

To learn more about Hakbah, please visit https://www.hakbah.com.

About VentureSouq

VentureSouq is a MENA-based venture capital fund manager with a global portfolio.VentureSouq manage thematic funds, with a current focus on FinTech and ClimateTech.

Portfolio companies includes: Tabby, Yassir, Huspy, ABHI Finance, Baraka, Salla,  Vendease, Erad,  Mala’a, Mozn, Nymcard, Omniful, Eradand Zenda

About M-Capital

 A Private Capital fund focused on MENA-technology startups.

About Global Ventures

Global Ventures is an international venture capital firm investing in founders and ideas scaling across emerging markets. Global Ventures backs global-minded founders that are leading growth-stage companies and using technology to transform emerging markets.

Portfolio companies include: Abhi, Altibbi, Enhance Fitness, Hive, Helium Health, Moniepoint, Paymob, Proximie, Pyypl, RedSea, Sympl, Tarabut, and Zid.

More information can be found at https://www.global.vc/.

About Aditum Ventures

Aditum Ventures is a UAE-based venture capital fund backing aspirational founders to help scale their businesses across MENA and beyond.

Aditum has expertise in fintech and B2B software and invests in high growth potential companies solving big problems with technology-led solutions. The venture fund is part of Aditum Investment Management, a DFSA-regulated asset manager. Hakbah is the firm’s 15th investment.

To learn more or apply for investment, visit https://www.aditumim.com/ventures/ or email ventures@aditumim.com.

About Bunat Ventures

Bunat Ventures is an AGDM-regulated venture capital fund manager operating in three key locations across the GCC: the UAE, Saudi Arabia, and Bahrain.

Bunat Ventures invest in businesses which combine profitability with positive social and environmental impacts. Portfolio companies include: 10Ten Labs, Abyan Capital, Banat, CoinMENA, Enactia, Fodel, Lamaa, Ninja, Okadoc, Omniful, ptway, and Walzay. To find out more, visit https://bunat.vc/.