A bold investment

Hakbah Secures 19M Riyals Funding to Enhance Savings Services

Announcement by Hakbah on the Closure of a $19M Investment Round

Hakbah, the Saudi financial technology platform for savings solutions, has announced the closure of a Series A investment round worth 19 million Saudi riyals, led by VentureSouq, with participation from new investors represented by M-Capital and Builders Venture, alongside previous investors Global Ventures and Aditum Ventures. It’s noteworthy that the application is owned by Noon Hakbah, authorized by the Saudi Central Bank to experiment with its innovative services in the legislative sandbox.

According to Hakbah’s statement, the company has seen an 18-fold increase in savings under its management and a fourfold increase in its revenues during the current year. It has also forged several strategic partnerships with companies such as flynas, boasting a customer base exceeding 500,000 users, with 70% of them falling within the age range of 21 to 35 years old.

Hakbah’s Objectives

The company will utilize the proceeds to develop its savings engine and introduce new savings products with a strong focus on machine learning technology. Additionally, it plans to allocate capital for talent acquisition and development, anticipating entry into two neighboring regional markets in the near future, either through partnerships or strategic alliances.

Hakbah indicates that its platform integrates with any banking or institutional system in less than a week, digitizing traditional monthly financial associations for spending purposes. Its users prioritize collective needs over time and share pooled money among themselves. This elevates traditional saving behaviors, serves a specific purpose, enhances financial literacy, and facilitates the creation, management, and joining of financial associations within the comprehensive Hakbah application.

It also facilitates payment operations within the app and receipt in the user’s bank account, authenticating all users by linking with government databases through national identity or residency verification. Additionally, it requires agreement to terms and conditions, privacy policy, commitment to payment for all members, and consent to an order receipt before receiving the association amount.

Naif AbuSaida, Founder of Hakbah:

“We are grateful and delighted to announce the funding round (Series A) and to enjoy the confidence of our new and existing investors. This signifies our success in achieving Hakbah’s strategic objectives and will aid in accelerating the company’s growth plans and financial stability for individuals.”

“We are also working on developing Hakbah as a savings platform where individuals can save easily, quickly, collectively, and with a strong social impact – in line with our mission to double the individual savings rate in the Kingdom of Saudi Arabia by 2025.”

“The support provided by the Saudi Central Bank, the National Digital Government Authority, Monshaat, the National Information Technology Development Program, and Fintech Saudi is crucial in our pursuit of growth and innovation. By leveraging machine learning and customer behaviors, we aim to develop advanced savings products that cater to our customers’ unique needs and contribute to achieving savings targets in the Financial Sector Development Program and Vision 2030.”

Comment from the General Partner of Financial Technology at VentureSouq:

Mosaab Hakami:

“We are pleased to lead this round in one of the most exciting startups in the Middle East region and to work with Naif and his team in their mission to develop financial savings and increase financial solidarity.”

“Hakbah truly possesses an innovative product in an attractive market and has a solid track record in delivering on its growth promises. We look forward to supporting the company’s continued expansion.”

Company Expectations for Future Growth:

Hakbah plans to leverage the new funding to expand into new markets in the region, develop new savings products, and attract talent. The company anticipates rapid growth in the coming years, aiming to become the leading savings platform in the Middle East.

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