Mala, an innovative business-to-business platform with its headquarters in Saudi Arabia, has closed a $7 million (26.25 million Saudi Riyals) pre-seed funding round. VentureSouq led the investment, with participation from Silicon Valley-based fund D Global Ventures (“DGV”), M Capital, BECO Capital, Access Bridge Ventures, Waad Investment, Palm Ventures, and pan-regional investment firm Shorooq Partners.
Saudi Arabia’s strong economy, which has a GDP of over $1 trillion, still mainly depends on conventional credit models, wherein commercial ties frequently take precedence over unbiased risk evaluations. Suppliers often face severe cash flow problems as a result of insufficient credit offerings in terms of volume and duration, particularly those that supply medium- and large-sized businesses. With its creative approach, Mala was founded to close this gap.
Mala was established in 2024 by seasoned businessman Musaab Hakami, and with its innovative “Procure-Now, Pay-Later” (PNPL) solution, it is transforming the B2B market. The platform was created especially for the SMEs in the area and provides buyers with flexible credit terms while guaranteeing suppliers get paid in cash right away. Using cutting-edge technology, Mala offers a smooth procurement process that adapts to the changing demands of the business community.
Musaab Hakami, Founder and CEO of Mala, remarked: “Suppliers in Saudi Arabia often struggle to extend adequate credit to buyers, as the traditional system relies more on established relationships than comprehensive credit risk evaluations. Mala harnesses data-driven insights to reshape this dynamic, enabling suppliers to be paid upfront while offering buyers flexible payment options tailored to their needs.”
To provide accurate credit risk assessments, the platform’s in-house technology gathers and examines a variety of data, such as market reputation, legal status, and financial metrics. This promotes a more robust and dynamic B2B ecosystem by enabling suppliers to gain instant liquidity and buyers to purchase goods on credit.
“There continues to be a massive credit gap in the MENA region, and we are excited about how Mala can help solve this very real problem, particularly for SMEs in Saudi Arabia. We have had the pleasure of working very closely with Musaab Hakami in various capacities, including while he’s been here at VentureSouq—he’s an incredible operator, and we look forward to continuing to work with him on building Mala,” said Suneel Gokhale, Co-Founder and General Partner at VentureSouq.
Given that the pre-launch pipeline has a projected transaction value of over $100 million, the excitement surrounding Mala is already evident. Officially, the platform will debut in Saudi Arabia in the fourth quarter of 2024. Mala is well-positioned to revolutionize business-to-business procurement in the Middle East and beyond with this significant investment, offering suppliers and SMEs alike unmatched value.
