Saudi Arabia: Hakbah, a Saudi Arabia-based Fintech startup that specializes in alternative savings and savings groups, has closed a $1.2M Seed funding round (SAR 4.5M). The round was funded by a group of undisclosed investors, six months after obtaining the approval of the Saudi Central Bank (SAMA) to launch its commercial services in the Kingdom.
Hakbah aims to modernize and ease saving behaviors through the Hakbah app for savings groups in a reliable, trusted, and straightforward manner, helping individuals increase their monthly regular saving amounts within the financial system. Hakbah has over 5,000 verified users, representing 25 nationalities.
Hakbah states that the most prominent saving habits worldwide are savings groups between family and friends (also known as ‘Jamiya’) and that the pandemic has increased the importance of savings for individuals. They estimate that the savings groups’ market size in Saudi at more than $6B (SAR 24B) annually. Savings Groups are traditionally managed and Hakbah seeks to change that with their app.
“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,” a statement from the startup said.
Hakbah plans to continue with product development, attract top talents and accelerate marketing efforts; ultimately aiming to serve more than 25,000 customers in the coming months, seeking to be the preferred platform for alternative savings in the region.