- UAE-based ClearGrid secures $10 million to revolutionize debt collection using AI, targeting banks, fintechs, and lenders.
- The company aims to 10x its revenue and managed accounts while expanding its engineering team in the next quarter.
- Backed by top investors like Beco Capital, Nuwa Capital, Raed Ventures, and prominent angel investors.
ClearGrid, a UAE-based fintech startup, has secured $10 million in funding to modernize debt collection using artificial intelligence. Founded in May 2023 by Mohammed Al-Zabin, the company helps banks, fintech firms, and lenders recover more debts without resorting to aggressive collection tactics.
With this new funding, ClearGrid aims to 10x its revenue and managed accounts, while also doubling its engineering team in the upcoming financial quarter to build what Al-Zabin calls “the ideal infrastructure for credit coordination in the region.”
The Need for AI in Debt Collection
In emerging markets, traditional debt collection methods are often outdated and inefficient, leading to high costs and poor borrower experiences. With growing consumer lending and regulatory pressure for fairer debt collection practices, legacy collection agencies are struggling to keep up.
ClearGrid aims to redefine the industry by leveraging AI to streamline and automate the debt recovery process. Backed by $10 million in total funding ($3.5 million pre-seed and $6.5 million seed funding), the Dubai-based startup integrates AI-powered solutions that allow lenders to recover debts more effectively while maintaining positive borrower relationships.
What is ClearGrid?
Founded in May 2023, ClearGrid has quickly gained attention for its tech-driven approach to debt collection.
Mohammed Al-Zabin, co-founder and CEO, describes the startup as an ambitious company tackling a massive market challenge.
Al-Zabin first encountered the challenges of debt collection while running his previous startup Munch On, which was acquired by Careem in 2022. After his exit, he realized that managing unpaid invoices was one of the biggest operational hurdles for businesses, particularly in consumer debt collection.
“When we spoke to debt collection agencies, it was clear that the sector was stuck in the past—some agencies still rely on pen and paper, while the most advanced ones use basic CRM systems.”
– Mohammed Al-Zabin, Co-founder & CEO
Recognizing the lack of innovation in debt collection, Al-Zabin partnered with Khalid bin Badr Al Saud and Mohammed Al-Khalili to launch ClearGrid. Despite having no prior experience in the debt recovery sector, the team saw an opportunity to bring AI-powered automation to an outdated industry.
How ClearGrid Works
ClearGrid acts as a bridge between lenders and borrowers, using AI-driven automation to improve debt recovery. Lenders integrate with ClearGrid’s platform or API, allowing them to send borrower accounts for AI-powered processing.
The company’s proprietary AI models analyze repayment probabilities, predict borrower behavior, and optimize communication strategies through multiple channels.
This approach helps lenders recover debts more efficiently while ensuring compliance with consumer protection regulations in markets like Saudi Arabia and the UAE.
Expansion Plans & Investor Support
With its latest funding round, ClearGrid aims to:
- 10x its revenue and managed accounts, currently handling 130,000 borrower accounts per month.
- Double its engineering team to build a next-generation credit coordination infrastructure for the region.
ClearGrid’s investors include top Middle East & North Africa-focused VC firms such as:
- Beco Capital
- Nuwa Capital
- Raed Ventures
Additionally, notable angel investors backing the company include:
- Anu Hariharan (ex-YC & Avra founder)
- Amjad Masad (CEO of Replit)
- Jason Gardner (CEO of Marqeta)
- Justin Kan (Co-founder of Twitch)
This investment further validates ClearGrid’s mission to modernize debt collection through AI, making the process more efficient, fair, and scalable for both lenders and borrowers.
