The round was led by Peak XV Partners (formerly Sequoia Capital India & SEA) and 885 Capital, alongside Y Combinator, 468 Capital, Pioneer Fund, and several high-profile angel investors, including Careem founder Mudassir Sheikha, Tabby founder Hosam Arab, and well-known content creator Khalid Al Ameri. It is one of the largest Series A raises for a fintech in the MENA region.

Co-founded by former McKinsey consultants Parthi Duraisamy and Karun Kurien, Alaan was built to address the inefficiencies plaguing finance teams across the region. 

Many companies still rely on outdated tools and fragmented processes, problems that Alaan aims to eliminate with full visibility, real-time control, and automation tailored for MENA markets.

Duraisamy, recalling his earlier frustrations with corporate expenses in the Middle East, explained: “I’d spend my weekends uploading receipts, reconciling every expense manually.” He said the company was designed to replace this “constant pain” with tools that work in the background, saving both time and effort.

Since its launch in 2022, Alaan has processed over 2.5 million transactions for more than 1,500 finance teams, including G42, Lulu Group, Careem, and Tabby. The platform claims to have saved finance teams over 1.5 million hours by automating tasks such as receipt matching, VAT extraction, and expense categorisation.

Early customer adoption has included major enterprises like UAE real estate developer Azizi, which centralised its spend processes across divisions, and GuestReady, which replaced shared corporate cards with Alaan’s virtual cards—allowing faster book closure and tighter spend control.

“Thanks to tools like Alaan الآن, automation and AI are not just buzzwords – they’re our superpower,” said Abhishek Tak, head of Finance at GuestReady.

The company’s AI agents now handle repetitive and error-prone processes, from flagging missing invoices to reviewing expenses against historical data. This focus on behind-the-scenes AI came after an early misstep, its initial customer-facing chatbot failed to gain traction, prompting the shift towards automation embedded in workflows.

Alaan’s profitability has been achieved with notable cost discipline. According to Duraisamy, the fintech spent $5 million to generate $10 million in revenue, a performance that has helped secure investor confidence.

“What really matters for a company at our stage is the fundamentals: how capital-efficient we are, how much revenue we generate, how strong our go-to-market motion is,” he said.

Regulatory approvals have been one of the biggest hurdles for the company, particularly in Saudi Arabia, where it only launched earlier this year after years of navigating licensing requirements. Since entering the market, Alaan says transaction volumes have doubled month-on-month for six consecutive months.

The fresh funding will be channelled into hiring across sales, compliance, and customer success, building AI-driven capabilities, and rolling out new products such as Bill Pay and Rewards Cards. These additions aim to give finance teams more control over spend and faster reconciliation, all within a single platform.

Duraisamy says the mission is focused on becoming the most trusted and widely used fintech in the region. “We’re building the finance infrastructure this region deserves. And as cliché as it sounds, we’re just getting started.”

The post Alaan Raises $48 Million in One of MENA’s Largest Fintech Series A Rounds appeared first on Tech | Business | Economy.

This cements Tabby’s position as the first fintech startup unicorn in the Gulf region, underlining its growth and market importance.

The rise of Tabby to prominence is attributed to its innovative approach, allowing users to stay in control of their spending and make the most out of their money.

With over 10 million users choosing Tabby to manage their finances, the app enables customers to split their purchases into four interest-free payments, both online and in-store, offering a Shariah-compliant solution to their financial needs.

One of Tabby’s key strengths lies in its partnerships with more than 30,000 global brands and small businesses, including industry giants like SHEIN, Amazon, Adidas, IKEA, H&M, Samsung, and noon.

Through its technology, these businesses accelerate their growth and gain loyal customers by offering flexible payments, both online and in physical stores.

The strategic expansion of Tabby in the Gulf region, being active in Saudi Arabia, UAE, and Kuwait, where the demand for convenient and accessible credit options is high due to limited credit card penetration, contributed to the company’s growth.

Unlike its counterparts in the United States and Europe, where BNPL providers often operate at a loss, Tabby has managed to achieve profitability in the GCC region. The company’s profitability is further reinforced by stringent regulations and a market where consumers are not overstretched when it comes to credit, making BNPL services a vital source of credit for many.

Founder and CEO Hosam Arab highlighted the significance of this achievement, emphasizing the company’s substantial growth and profitability over the last year. He explained that Tabby’s profitability stems from its unique market position, catering to two distinct customer segments: those in regions with low credit card penetration and customers who find

Tabby’s tokenized payment method convenient. This market-focused approach has allowed Tabby to maintain solid payment performance and address concerns related to impulsive spending and unsustainable debt caused by BNPL services.

Tabby’s latest funding round was led by investors including Sequoia Capital India, STV, PayPal Ventures, Mubadala Investment Capital, Arbor Ventures, Endeavor Catalyst, Wellington Management, and Bluepool Capital. This influx of capital positions Tabby for future growth and potentially marks the last round of funding before an initial public offering (IPO).

Tabby seeks to enhance the way people shop, earn, and save. Its newfound unicorn status highlights the app’s role in reshaping the future of fintech in the Gulf region.

With a goal to provide accessible and transparent financial solutions, Tabby stands at the forefront of facilitating the digital finance space, empowering millions to achieve financial freedom.

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