Saudi fintech savings platform Hakbah has successfully raised $5.1 million in its Series A funding round, led by VentureSouq, a MENA-based venture capital firm. Other contributors to this funding round include new investors M-Capital and Bunat Ventures, alongside existing investors Global Ventures and Aditum Investment Management Ltd.
Hakbah has reported substantial growth in 2023, witnessing an 18x increase in Total Savings Under Management and a 4x surge in revenue. With a user base exceeding 500,000, primarily aged between 21 and 35 years old, Hakbah has forged partnerships with key entities such as flynas, the national low-cost airline in Saudi Arabia and the Middle East.
The Series A funds will be allocated to product development, with a focus on integrating Machine Learning and enhancing the platform’s easily integrable savings engine. Additionally, the capital will support talent acquisition, reinforcing Hakbah’s position as the leading savings platform in the region. The company is poised to enter two regional markets soon, either through partnerships or strategic alliances.
Hakbah’s social savings platform aims to tackle the Middle East savings crisis, aligning with the objectives of Saudi Vision 2030 and the country’s Financial Sector Development Program. Notably, 70% of Saudi citizens lack emergency savings, and the household savings rate averages just 1.6%.
Naif AbuSaida, Founder of Hakbah, emphasized the company’s mission to build a savings platform that enables individuals to save easily, quickly, collectively, and with impact. The goal is to double the individuals’ savings ratio in Saudi Arabia by 2025. AbuSaida highlighted the significant opportunity for efficient, digital solutions to transform Saudi Arabia’s savings habits, considering the sizable Savings Groups and Household Savings markets, and the fact that 60% of the population is under 30.
Hakbah’s model addresses financial inclusion by digitizing traditional group savings (Jameya), facilitating purpose-driven savings, and enhancing financial literacy. This approach aligns with the broader global trend of savings groups, present in over 60 countries.