Dubai-based Wafeq Secures $7.5 Million in Series A Funding to Expand Its Software-as-a-Service Solution for Small and Medium Enterprises in Accounting.
Wafeq, a Dubai-based accounting and invoicing software startup, has secured $7.5 million in a Series A funding round. This investment will propel Wafeq's plans to expand and enhance its digital accounting platform, focusing on automation, AI, and embedded financial services.
Enhancing the Digital Accounting Platform
Wafeq's platform currently helps users manage various aspects of their business, such as sending invoices, quotes, and purchase orders, managing inventory and payroll, and generating financial reports. The software also automatically generates VAT returns in the required formats for the UAE and Saudi tax authorities.
With the new funding, Wafeq aims to take its platform to the next level. Key expansion initiatives include:
- In-app bank account opening: Soon, businesses will be able to open a Wio bank account directly within Wafeq without needing to download a separate app. This integration will be a first-of-its-kind in the UAE market.
- Embedded financing services: Wafeq plans to offer credit and loan services within its platform, enabling businesses to access financing seamlessly without switching between different platforms.
- Advanced payment tracking: Real-time payment status updates, such as "Pending at Central Bank", will be integrated into Wafeq, providing businesses with enhanced visibility and control over their transactions.
- Continuous product enhancements: Recent updates include bulk transaction actions, smart inbox powered by OCR, new corporate tax features, and streamlined journal entry workflows, demonstrating Wafeq’s ongoing commitment to improving productivity for accounting firms.
A Comprehensive Solution for SMEs and Accounting Firms
Wafeq is designed for SME business owners and accountants. The software offers integrations with various banks in UAE & Saudi, including Saudi Awwal Bank, Al Rajhi Bank, HSBC, and Wio, and Stripe, Foodics, and Salla.
Founded in 2019 by Nadim Alameddine, Wafeq has grown to over 8,000 customers across different sectors in less than 2.5 years. The startup offers different plans, starting from $180 per year or $29 per month.
Nadim Alameddine, the founder and CEO of Wafeq, stated that the digitization drive of regional businesses is crucial in modernizing economies. He emphasized that Wafeq is ensuring business owners and accounting firms have the tools to stay compliant and run their businesses better.
The funding round was led by London-based 9900 Capital, with participation from Gary Turner, the former CEO of Xero's EMEA operations, and existing investors Raed Ventures and Wamda Capital. This investment underscores the confidence in Wafeq's potential to become a comprehensive, next-generation accounting and banking platform for SMEs and accounting firms in the MENA region.
Wafeq intends to utilize the $7.5 million Series A funding to enrich its digital accounting platform, particularly by offering embedded financing services that allow businesses to access credit and loans within the platform. Additionally, Wafeq plans to offer an in-app bank account opening, a first-of-its-kind integration in the UAE market, as part of its comprehensive solution for Small and Medium Enterprises (SMEs) and accounting firms in the business and finance sectors.
