VentureSouq Leads US$5.1M Series A Round for Fintech Pioneer Hakbah in MENA’s Savings Market
In a landmark achievement, Hakbah, the premier Saudi-based fintech savings platform, has successfully raised US$5.1 million in its Series A funding round. The round was spearheaded by VentureSouq, a leading MENA-based venture capital firm with a global footprint. Notable participation came from new investors M-Capital and Bunat Ventures, along with continued support from existing investors Global Ventures and Aditum Investment Management Ltd.
Hakbah has emerged as one of the fastest-growing startups in the MENA region, operating within Saudi Arabia's substantial US$216 billion savings market. The company's stellar performance includes an impressive 18x increase in Total Savings Under Management and a fourfold surge in revenue this year. Forming strategic partnerships with industry leaders like flynas, the national low-cost airline in Saudi Arabia and the Middle East, Hakbah boasts a customer base exceeding 500,000 users, with 70 percent falling between the ages of 21 and 35.
The infusion of capital from the Series A round will be channeled towards robust product development, with a primary emphasis on leveraging Machine Learning to enhance Hakbah's easily integrable savings engine. A significant portion of the funds will be dedicated to attracting and nurturing top-tier talent, reinforcing Hakbah's standing as the leading savings platform in the region. The company has ambitious plans to enter two additional regional markets in the near future, either through strategic alliances or partnerships.
Hakbah's unique social savings platform, designed to bolster financial inclusion, seamlessly integrates with any banking system in less than a week. It includes the digitisation of traditional group savings (Jameya), a widely practiced savings behaviour in over 60 countries globally. Users prioritise collective savings for specific purposes, thereby elevating traditional savings habits and promoting financial literacy.
Naif AbuSaida, the Founder of Hakbah, expressed gratitude for the support from both new and existing investors, highlighting the success in achieving strategic goals. AbuSaida outlined the mission to double the individual savings ratio in Saudi Arabia by 2025 and emphasised the significant opportunity to transform the country's savings habits, particularly with 60 percent of the population under 30.
Musaab Hakami, General Partner - Fintech at VentureSouq, expressed excitement about leading the funding round for one of the region's most promising startups. He lauded Hakbah's innovative product, its compelling market positioning, and its track record of delivering on growth promises. Hakami conveyed eagerness to support Hakbah in its continued scaling efforts.
Hakbah's model addresses the pressing savings crisis in the Middle East, aligning with the strategic objectives of 'Saudi Vision 2030' and the country's Financial Sector Development Program. With 70 percent of Saudi citizens lacking emergency savings and a household savings rate averaging just 1.6 percent, Hakbah's mission is poised to make a substantial impact on reshaping financial behaviours in the region.
In a final note, AbuSaida expressed appreciation for the support from esteemed organisations such as the Saudi Central Bank, Digital Government Authority, Monsha'at, National Technology Development Program, and Saudi Fintech. Leveraging machine learning and customer behaviours, Hakbah aims to develop cutting-edge savings products that cater to the unique needs of its growing customer base.
