Unveiling ClearGrid: The Contemporary Debt Collector Revolutionizing Financial Recovery
With the Middle Eastern consumer lending market thriving, it's essential to tackle the issue of debt collection effectively. Enter Dubai-based startup, ClearGrid, which recently secured $10 million in funding—a testament to their innovative solution to this pressing issue.
"Debt collection in our region is due for an overhaul," says ClearGrid's CEO, Mohammad Al Zaben. He, along with co-founders Mohammed AlKhalili and Khalid Bin Bader Al Saud, founded the company with the goal of modernizing debt collection practices. "In the past, debt was viewed negatively for religious reasons, but a new generation of consumers has a different perspective on borrowing."
Traditional debt collection methods are becoming increasingly problematic as the debt sector expands. The Middle Eastern consumer lending market, worth $500 billion and growing, is attracting attention from consumer protection regulators, and heavy-handed collection tactics could lead to regulatory scrutiny and financial strain.
ClearGrid's answer? A tech-based solution. "We've developed a digital debt resolution platform powered by AI and machine learning," explains Al Zaben. It assists lenders in recovering capital effectively, creating better outcomes for borrowers.
When a borrower falls behind on repayments, the lender uploads their information to the ClearGrid platform. The platform uses AI to analyze each case, securing additional data if necessary, to predict the best way to recover the debt. It then engages borrowers through tailored communication, offering repayment options, and managing the process. The repayment options can be tailored based on the lender's criteria, taking into account factors like the borrower's employment status and financial situation.
ClearGrid launched the platform in January 2024 and has already signed up fintech firms and enterprise lenders alike. Results so far show an average 38% increase in collection rates with resolutions happening more swiftly than with conventional methods. What's more, borrowers are satisfied with the process, as the AI-driven platform allows for a more human, individualized approach to debt collection.
With the Middle East's vast debt market showing no signs of slowing, ClearGrid's innovative solution has caught the eye of investors. The latest funding round, totaling $10 million, includes investments from Raed Ventures, Beco Capital, Nuwa Capital, Aramco's Waed Ventures, and more. The funds will be used for product development and market expansion, particularly in Saudi Arabia.
Investor Omar Majdouie of Raed Ventures praises ClearGrid's platform, stating, "It delivers significant operational efficiencies for lenders while fostering a more positive and sustainable relationship with borrowers." Khaled Talhoun of Nuwa Capital agrees, "ClearGrid transforms the debt resolution process, improving collections and setting a new standard for the industry."
[1] Report link: https://www.cleargrid.ai/press-releases/cleargrid-announces-10m-in-funding-to-revolutionize-debt-collection-in-the-middle-east[2] Case study link: https://www.cleargrid.ai/case-studies[3] Blog post link: https://www.cleargrid.ai/blog/cleargrid-successfully-resolves-1m-of-consumer-debts-in-the-first-quarter[4] Whitepaper link: https://www.cleargrid.ai/resources/ai-powered-debt-resolution-whitepaper[5] Interview link: https://www.cleargrid.ai/media-and-resources/press-releases/interview-with-mohammad-al-zaben-ceo-of-cleargrid-on-reimagining-debt-collection-in-the-middle-east
- "Entrepreneurs Mohammad Al Zaben, Mohammed AlKhalili, and Khalid Bin Bader Al Saud, the co-founders of ClearGrid, aim to revolutionize debt collection practices in the Middle East with their tech-based solution."
- "Lenders have expressed interest in ClearGrid's digital debt resolution platform, which assists in recovering capital effectively and creates better outcomes for borrowers through AI and machine learning."
- "Investors such as Raed Ventures, Beco Capital, Nuwa Capital, Aramco's Waed Ventures, and more, have recognized the efficiencies brought about by ClearGrid's platform, which fosters a more positive and sustainable relationship between lenders and borrowers."
