Saudi-based savings platform Hakbah has recently concluded a successful Series A funding round, amassing a substantial $5.2 million.
This financial milestone was achieved under the leadership of VentureSouq, a MENA-based venture capital firm with an impressive global portfolio. Joining the investment were new entrants M-Capital and Bunat Ventures, alongside existing investors Global Ventures and Aditum Investment Management Ltd.
Hakbah has established itself as a formidable presence in the Kingdom of Saudi Arabia’s (KSA) vast $216 billion savings market. The company’s recent performance is nothing short of remarkable, boasting an 18x increase in Total Savings Under Management and a fourfold rise in revenue. This trajectory is further bolstered by strategic partnerships, most notably with flynas, a prominent low-cost airline in the Middle East. Remarkably, Hakbah’s customer base has surged to over 500,000 users, with a significant 70% falling within the 21-35 age bracket.
The newly acquired funds from the Series A round are earmarked for a range of ambitious initiatives. Key among these is the advancement of product development, with a particular emphasis on Machine Learning. The company also plans to enhance its savings engine, making it more easily integrable. Moreover, a portion of the capital is set aside to attract and retain top talent in the region, thereby consolidating Hakbah’s standing as the premier savings platform in the MENA region. Future plans include expanding into two additional regional markets through partnerships or strategic alliances.
At the heart of Hakbah’s innovative offering is its social savings platform, a system designed to bolster financial inclusion and seamlessly integrate with any banking system in under a week. This platform modernises the traditional group savings concept known as Jameya, widely practiced in over 60 countries. By digitising this practice, Hakbah enables users to collectively save and rotate funds within the group, enhancing traditional savings habits, promoting financial literacy, and facilitating purpose-driven saving.
Hakbah’s strategy addresses the critical savings issue in the Middle East. This initiative aligns with Saudi Vision 2030’s objectives, aiming to tackle the low household savings rate and lack of emergency funds among Saudi citizens.
Naif AbuSaida, Founder of Hakbah, shared his enthusiasm: “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, also expressed his excitement: “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.”
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