- Wafeq processes over 2 million invoices monthly, valued at $400 million, with 90% originating from Saudi Arabia.
- The platform integrates with leading regional banks like Saudi Awwal Bank, Al Rajhi Bank, HSBC, and Wio, automating accounting processes.
- Notable clients include Tabby, AlManea, Platinumlist, Virtuzone, and LikeCard, highlighting its widespread adoption.
- The company secured $7.5 million in Series A funding, enabling expansion, product development, and job creation in Saudi Arabia and the UAE.
Wafeq, a modern and user-friendly accounting platform, has successfully secured $7.5 million in a Series A funding round, equivalent to SAR 28 million. This milestone aims to accelerate the digital transformation of accounting practices for small and medium-sized enterprises (SMEs) across the Middle East.
The funding was led by 9900 Capital, with participation from Gary Turner, the former CEO of Xero’s operations in EMEA, alongside existing investors Raed Ventures and Wamda Capital.
This achievement marks a significant step forward in Wafeq’s mission to simplify and enhance financial management for SMEs. The platform’s innovative solutions, tailored to meet the unique needs of regional businesses, have gained substantial traction.
Strategic Investment to Foster Growth
Wafeq’s Series A funding highlights its appeal among globally renowned investors in the accounting technology space. 9900 Capital, led by Managing Partner Chris Corbishley, played a pivotal role in the investment.
Corbishley’s portfolio includes major players like Pennylane, a French unicorn, and Payhawk, a European leader in financial planning and spending management. Individual investor Gary Turner brought his expertise to the table, having built and scaled Xero, one of the world’s largest accounting software companies.
Raed Ventures and Wamda Capital reaffirmed their confidence in Wafeq by participating in this funding round, underscoring the platform’s potential to reshape the accounting landscape in the region.
A Pioneering Solution for SMEs
Founded in 2019 by CEO Nadim Alameddine, Wafeq has become a transformative force in SME accounting. The platform simplifies complex financial processes, enabling businesses to remain compliant with evolving regulatory requirements while improving efficiency.
Wafeq caters to SMEs and large companies across various industries, offering tools that include ZATCA-compliant e-invoicing, payroll management, VAT reporting, and accounts payable automation.
Its hyper-localized approach, which incorporates integrations with leading regional banks such as Saudi Awwal Bank, Al Rajhi Bank, HSBC, and Wio, sets it apart from competitors. These integrations enable automated accounting, allowing businesses to streamline their operations and focus on growth.
Remarkable Growth and Regional Impact
In just 2.5 years, Wafeq has grown from zero to over 8,000 customers, a testament to its innovative and user-friendly platform. The company processes more than 2 million invoices monthly, valued at $400 million (SAR 1.5 billion), with 90% of its business originating from Saudi Arabia.
This rapid growth aligns with the Kingdom’s Vision 2030, which emphasizes economic diversification and the digital transformation of businesses. Saudi Arabia’s SME sector has seen exponential growth, now hosting over 1.5 million SMEs—more than double the number two years ago.
These businesses play a critical role in driving the region’s economic development, and Wafeq is uniquely positioned to support their financial and compliance needs.
Expanding Footprint in KSA and UAE
The funding will enable Wafeq to scale its operations further, focusing on its core markets of Saudi Arabia and the UAE. The company plans to invest in hiring and product development to enhance its platform’s capabilities and expand its customer base.
Nadim Alameddine emphasized Wafeq’s commitment to supporting regional SMEs, stating, “The digitization drive of regional businesses has been crucial in modernizing our economies. With SMEs navigating an evolving regulatory landscape, Wafeq is ensuring that business owners and accounting firms have the tools to stay compliant and run their businesses better. Our Series A round puts us one step closer to simplifying accounting in MENA.”
Wafeq’s investment in compliance-focused product development is particularly timely as new taxation policies are introduced in Saudi Arabia and the UAE.
These include corporate tax implementation and mandatory e-invoicing in the UAE. Wafeq’s platform simplifies compliance by providing businesses with a centralized dashboard to manage their financial operations across multiple branches.
Supporting SMEs with Innovative Technology
Wafeq’s approach to accounting is rooted in innovation and practicality. By automating key financial processes, the platform reduces manual workloads and minimizes errors. It offers a range of features designed to meet the specific needs of SMEs in the Middle East, ensuring compliance with local regulations.
Notable clients, including Tabby, AlManea, Platinumlist, Virtuzone, and LikeCard, rely on Wafeq for their accounting needs. The platform’s versatility and ease of use make it a preferred choice for businesses seeking efficient financial management tools.
Gary Turner expressed his confidence in Wafeq’s vision, saying, “Having built and scaled financial software previously, I’m excited to back Wafeq, who is at the forefront of a significant shift in accounting practices in the GCC. I’m eager to support their journey as they empower businesses with modern, compliant, and user-friendly accounting solutions.”
Addressing Regulatory Changes
The Middle East’s regulatory landscape is undergoing significant changes, with new requirements such as VAT implementation, corporate tax, and e-invoicing. Wafeq is at the forefront of helping businesses navigate these changes. Its platform ensures compliance with the Zakat, Tax and Customs Authority (ZATCA) in Saudi Arabia and the Federal Tax Authority (FTA) in the UAE.
These features make Wafeq an indispensable tool for SMEs striving to stay ahead in a dynamic business environment. By addressing compliance requirements proactively, Wafeq empowers businesses to focus on growth and innovation.
Vision for the Future
Wafeq’s vision extends beyond accounting. The platform aims to drive economic growth by enabling SMEs to thrive in an increasingly competitive market. By simplifying financial management and ensuring compliance, Wafeq contributes to the broader goals of regional governments, such as Saudi Arabia’s Vision 2030.
Faisal Alhajj, Head of MENA at 9900 Capital, highlighted the importance of localized solutions, stating, “This is a uniquely transformative time to be investing in the GCC and in Saudi Arabia. A new generation of innovative businesses is requiring localized solutions to meet their financial planning and accounting needs. Wafeq’s hyper-localized platform is transforming SME accounting, empowering them to manage their finances in a simple and effective manner.”
Looking ahead, Wafeq’s $7.5 million Series A funding marks a significant milestone in its journey to revolutionize accounting for SMEs in the Middle East. With a strong focus on compliance, innovation, and customer-centric solutions, Wafeq is well-positioned to lead the digital transformation of accounting in the region.
As SMEs continue to play a pivotal role in driving economic growth, Wafeq’s platform offers the tools and support they need to succeed. The company’s commitment to simplifying accounting and fostering innovation ensures its relevance in a rapidly evolving market. With plans to expand its presence in Saudi Arabia and the UAE, Wafeq is set to shape the future of SME accounting in the Middle East.
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Last Updated on December 11, 2024 by Safiya K
