CAIRO: Wafeq, a UAE-based monetary software program firm for small and medium enterprises, raised $3 million in a seed funding spherical led by Raed Ventures with participation from Wamda Capital to double down on its Saudi presence in addition to broaden to Egypt. 

Launched in 2019, Wafeq is a fintech startup that gives easy-to-use software program to empower accounting and finance operations for SMEs. 

In an unique interview with Arab Information, Nadim Alamddine, Founder and CEO at Wafeq, mentioned that Saudi Arabia is the biggest and most vital marketplace for the corporate. 

“As such, we are going to double down on our development right here to proceed providing our options to SMEs within the Kingdom. We already rely a number of the most profitable SMEs and startups as our prospects, and as we develop right here, we are going to proceed to assist companies develop into compliant with accounting laws,” he acknowledged. 

Empowering SMEs 

Constructed for the finance and accounting wants of SMEs within the area, Wafeq’s software program is trusted by over 5,000 enterprise house owners {and professional} accountants processing over $117 million in month-to-month invoices. 

“Our platform is utilized by main startups and SMEs from a various vary of industries, together with contracting, meals and beverage, ecommerce, retail, and extra,” Alameddine defined. 

SMEs comprise over 98 p.c of all firms in Saudi Arabia, 90 p.c in Egypt, and 94 p.c within the UAE which offers Wafeq with a big market to gasoline its operations. 

Furthermore, digitization of accounting practices in all three markets is present process important shifts with the introduction of obligatory e-invoicing and digital reporting. 

“Saudi Arabia has one of the vital clear and business-friendly accounting practices within the area, put in place by the Zakat, Tax and Customs Authority, also referred to as ZATCA,” Alameddine acknowledged. 

In December 2021, ZATCA introduced that every one taxpayers must difficulty digital invoices with a suitable authorities system and divided the implementation into two phases. 

Within the first part, taxpayers have been required to difficulty e-invoices in addition to get aware of the implementation of the brand new system. Within the second part, which is ready to be applied in July 2023, taxpayers with VATable revenue exceeding SR 500 million will probably be obliged to combine their e-invoices programs with the governmental FATOORAH platform. 

“SMEs nonetheless observe handbook processes or use legacy software program that aren’t suitable with native accounting necessities. Our technique in Saudi Arabia will probably be to construct extra localised options, make sure the profitable implementation of ZATCA part 2, and produce our e-invoicing API options to extra companies right here,” he added. 

Wafeq initially targeted on startups and purchased prospects in category-leading companies reminiscent of UAE fintech Tabby, Saudi fintech Lean Applied sciences, Dubai fintech DAPI, UAE mobility-tech Fenix, and Saudi fintech PiFlow amongst many extra. 

Egyptian Alternatives 

The corporate plans to make the most of its funding to broaden its present presence in Saudi Arabia and the UAE in addition to gasoline its entry to Egypt. 

Alameddine defined that as Egypt stands with the very best share of SMEs, companies have very restricted entry to tech options that may help their operations. 

“From a coverage standpoint, Egypt is bringing in necessities like e-invoicing and shortly e-receipts for companies and that is the place Wafeq can have a constructive impression. As we enter Egypt, we is not going to solely look to amass new prospects but in addition create jobs regionally,” he added. 

Wafeq’s standalone e-invoicing API will play an enormous function in its growth to Egypt which permits startups and companies to arrange dependable third-party e-invoicing in addition to keep compliant with laws. 

“Along with the backing of Raed Ventures and Wamda Capital, we’re enthusiastic about our entry into Egypt whereas rising our presence in Saudi Arabia and the UAE,” Alameddine mentioned. 

Talal Alasmari, founding oartner at Raed Ventures, mentioned that Wafeq is fixing an issue that impacts 1000’s of companies within the area. 

“The digitalisation of accounting practices will actually rework how SMEs right here function, rising operational transparency, creating efficiencies and contributing to financial development,” Alasmari added. 

 The corporate operates a Software program as a Service enterprise mannequin which enhances its technique to be straightforward and inexpensive for companies to make use of its software program. 

“Signing up for Wafeq is free, and prospects beginning a enterprise can select to make use of our fundamental bundle. For purchasers with extra complicated necessities, now we have a spread of pricing choices that considers their wants, quantity of invoicing and different elements,” Alameddine defined. 

Raed Ventures is a enterprise capital agency that was based in 2015 in Dammam, Saudi Arabia, which focuses on early-stage startups and has invested in notable firms like SWVL, Tabby, and Trella. 

Based within the UAE in 2014, Wamda Capital is likely one of the main enterprise capital companies within the area with a portfolio of investments in over 70 firms together with Careem and Nana.