Saudi-based FinTech and digital loan broker Arib raises $2.3M in SEED financing from Merak Capital to finalize its SAMA innovation license and diversify its loan offering.
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KSA-based FinTech and digital broker for personal loans in Saudi Arabia, Arib has successfully raised $2.3M in its latest funding round. The SEED round was led by Merak Capital, an investment firm focused on technology companies and licensed by the Capital Market Authority of Saudi Arabia, with participation from angel investors.
Founded in 2019 by Waleed Talaat, Omar Alhammad, and Mohamed Dessouky, Arib has developed its first product, “Syaaraat,” an all-in-one platform that provides consumers with auto financing options from different banks and financing companies. The platform helps people choose the best auto financing options pertaining to their credit profile quickly and easily while increasing sales, lowering costs, and offering access to new clients for banks and car dealerships.
As recorded in our KSA 2022 Venture Investment Report, KSA-based FinTech startups closed the lion’s share of transactions to raise south of a $100M in 2021. 55% of the total capital invested in FinTech was raised by the top 4 rounds closed by Banking and InsurTech pioneer Rasan Information Technology, car marketplace Syarah, shariah-compliant crowdlending platform Lendo, as well as B2B marketplace Retailo providing business with supply chain innovation and BNPL solutions. This comes amidst a genera spike in FinTech investment in Emerging Venture Markets, where the sector crossed the $2Bn mark in funding over 2021 and has already raised almost half that amount in the first quarter of this year with startups Flutterwave (Nigeria) and Rain (ME) both raising Mega Rounds this year.
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As elaborated in his statement, Partner & CEO of Merak Capital Abdullah Altamami showed confidence that with Syaaraat, Arib is revolutionizing how auto-loans are being issued with a more efficient, transparent, and convenient process for consumers, and a more organized operation for its partners in their revenue cycle management. As one of the most prominent technology investors in the Middle East, Merak Capital will help Arib achieve its growth targets, form new partnerships with regional financial institutions, build a talented team, and expand in offerings and into other markets. Abdullah Altamami, Partner & CEO of Merak Capital, commented: “We at Merak have always been committed to investing in technologies that play a pivotal role in the region’s digital infrastructure. As such, we are proud to back Arib as it accelerates in digitizing hundreds of billions in loans across the Kingdom, and soon the region.”
This investment will enable Arib to meet the requirement set by SAMA to finalize the licensing process as well as expand Arib’s portfolio of services to encompass different types of loans, including personal loans, home loans, and credit cards. Arib will also use this funding to streamline its operations and technology infrastructure. Waleed Talat, CEO and Co-founder of Arib, said: “The Kingdom of Saudi Arabia is witnessing an unprecedented revolution in technology, and it’s not more apparent than in the FinTech space. Alongside the accelerated adoption of FinTech solutions, SAMA introduced a license for digital brokerages as a supportive activity to financing services. And we are proud to have been granted initial approval by SAMA for the activity of digital brokerage services.We are happy to close this round as it is a testament to our accelerated growth over the past three years. During this time, we have served over 50,000 clients across all regions in the kingdom. We aim to go forward with this investment by finalizing licensing from SAMA and expanding our portfolio of products with more loans to be serviced by our platforms, including personal loans, home loans, credit cards, and more.”
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