A UAE- based fintech organization for small and mid businesses named Wafeq raised $3 million in a seed fundraising phase headed by Raed Ventures with involvement from Wamda Capital to grow into Egypt and double up on its Saudi foothold.
Wafeq, a financial technology firm founded in 2019, offers simple software to enable accounting and financial processes for SMEs.
Nadim Alamddine, CEO at Wafeq, in a candid conversation with Arab News, stated that the Kingdom has turned out to be the biggest marketplace for the organization. We aim to double down our expansion in Saudi Arabia to continue providing solutions to SMEs nationwide. We already have several SMEs and startups as our clients and focus on helping organizations become flexible with accounting terms.
Wafeq's application, designed for the financial and accounting requirements of SMEs in the area, is recognized by over 5,000 company owners and financial experts who handle over $117 million in monthly payments.
SMEs count for more than 98 percent of all businesses in Saudi Arabia, 90 percent in Egypt, and 94 percent in the UAE, providing Wafeq with a sizable market to drive its activities.
Furthermore, with the implementation of required e-invoicing and electronic reporting, the digitalization of accounting methods in all market segments is experiencing substantial adjustments.
"The Zakat, Tax, and Customs Authority has set up among the most open and company-friendly
accounting systems in the area," Alameddine said. ZATCA stated in December 2021 that all taxpayers would be required to generate digital invoices using a compliant legislature, with the deployment separated into two parts.
During the initial stage, taxpayers were obliged to generate e-invoices and become acquainted with the new system's deployment. Taxpayers with VATable revenue over SR 500 million will be required to link their e-invoice technologies with the state FATOORAH portal in phase two, which is planned to begin in July 2023.
"SMEs continue to employ manual procedures or old software that is incompatible with regional accounting rules. In Saudi Arabia, our objective will be to develop additional localized features, ensuring the effective deployment of ZATCA phase 2, and deliver our e-invoicing API services to more organizations," he added.
Wafeq initially concentrated on entrepreneurs, acquiring clients from industry leaders like UAE fintech Tabby, Dubai fintech DAPI, UAE mobility-tech Fenix, Saudi fintech Lean Technologies, and Saudi fintech PiFlow, among many others.