Saudi Islamic Fintech Platform Hakbah Closes $2 Million Pre-Series A
Hakbah will use the fund to further digitise traditional savings behaviour to address the Middle East savings crisis.
Saudi-based fintech savings platform, Hakbah, has raised $2 million in a pre-Series A funding round from Global Ventures and Aditum Investment Management. This marks the platform's first institutional capital, following approval granted by the Saudi Central Bank (SAMA). The proceeds will be used to improve the user experience and enhance the savings engine algorithm to optimally serve customers seeking to save in an innovative, accessible manner, with a social impact.
Hakbah aims to digitise traditional savings behaviour, leveraging data, needs and behaviours to address the Middle East savings crisis. According to data, 70% of Saudis do not have emergency savings, and the household savings rate averages just 1.6%. Hakbah's value proposition of financial inclusion via social savings has driven unprecedented demand, with 120,000 active, verified and ready-to-serve customers on its platform.
The company has a solid track record, with organic growth in 2022 multiplied by more than 20 times. The platform helped 18,000 customers save over $35 million last year alone. Hakbah's user-friendly platform allows users to save for specific purposes, and enables them to boost their own financial literacy.
Hakbah has been permitted by SAMA to test its innovative savings services in the Regulatory Sandbox. "Savings are an important pillar of the Financial Sector Development Program and increasing them is a key focus for Saudi Vision 2030,” Naif AbuSaida, founder of Hakbah, tells StartupScene. “Hakbah will play a key role in supporting this goal by widening its savings offering and partnerships for employees, gig-workers, students, housewives, and many others."
The funds raised will go a long way in enabling the company to continue scaling and make a meaningful impact in the region.
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