Saudi fintech startup Madfu raised USD 25.5M in a Pre-Series A funding round. The Riyadh-based company offers Buy Now, Pay Later services that let customers split purchases into interest-free installments. Afaq Capital led the round, with angel investors joining in.
Company Background
Founders Abdullah Alibrahim, Ahmed Alwusheel, and Anas Alshuqair started Madfu in 2022. The platform provides Sharia-compliant payment options with no hidden fees. Customers pay up to six installments, easing financial pressure on everyday buys like electronics or groceries.
The Saudi Central Bank licensed Madfu early on for BNPL services. This approval puts the company in line with strict regulations. It targets retail, e-commerce, and services, helping shoppers manage cash flow while boosting merchant sales through higher conversions.
Funding Details
Madfu raised USD 25.5M, equal to SAR 95 million. Leaders from Afaq Capital backed the effort, seeing potential in Saudi Arabia’s digital shift. This cash comes as BNPL demand surges among young, online shoppers who avoid traditional loans. Past rounds show steady growth. Madfu grabbed $1.3 million in pre-seed funding back in 2022. Now, this larger injection fuels bigger plans in a hot fintech market where e-payments jump yearly.
Growth Ahead
The money will expand operations across Saudi Arabia. Madfu plans to add more merchant partners in retail and online spaces. It will also upgrade tech to handle more transactions smoothly and launch mobile app features for faster approvals.
New products top the list, too. The team aims to roll out fresh Sharia-friendly options like longer terms for big-ticket items. This push matches the rise in cashless payments nationwide, with Saudis spending more digitally each month.
Market Fit
BNPL grows fast in Saudi Arabia as e-commerce booms. Madfu taps into this by offering transparent, flexible credit. Younger users prefer it over cards, driving average purchase sizes up for stores by 30-40% in some cases. Rivals like Spotii also hold licenses, but Madfu stands out with its focus on zero-interest faith-based plans. Users trust it for clear terms, no surprises.
Saudi Arabia pushes fintech under Vision 2030. Goals include more digital finance and inclusion for all. Madfu’s model supports this by growing alternative credit in a regulated way. Strong backing and licenses position it well for the digital economy ahead. The startup now eyes a wider Gulf reach, building on Saudi success to serve millions more seeking easy payments.
