Riyadh, Saudi Arabia-based fintech startup Hakbah, last week, announced that it has raised $1.2 million seed funding from undisclosed investors. The development comes after six months Hakbah obtaining the approval from Saudi Central Bank (SAMA) for launching its commercial services in the kingdom.
Hakbah plans to utilise the capital for product development, attract top talents and accelerate marketing efforts, expand its userbase – ultimately becoming a preferred platform for alternative savings in the region.
Founded in 2018, Hakbah aims to modernize and ease saving behaviours through its app – helping users increase their monthly regular savings. The company claims that it currently has over 5,000 verified users coming from 25 different nationalities.
Talking about the latest development, the company in a press statement, shared,
“We seek to make a difference and enable individuals to safely, transparently, and easily control their savings through the Hakbah app. This investment round comes from the investors’ confidence in Hakbah’s strategic plan and performance that Hakbah is proud of, as a first culmination of the work team’s efforts during the last period.”
The company also said that one of the most prominent saving habits worldwide is saving groups between family and friends (also known as ‘Jam’iya’) and that the pandemic has increased the importance of savings for individuals. They estimate that the savings groups’ market size in Saudi Arabia at more than $6 billion. Savings Groups are traditionally managed and Hakbah seeks to change that with their app.
After graduating from the DIFC Fintech Accelerator Programme 2019, Hakbah signed a strategic partnership agreement with Visa and joined the global ‘Visa’s Fintech Fast Track’ program in September 2020.