Hakbah closes USD 1.2 million seed round after obtaining SAMA approval

By Edil Corneille

Riyadh-based Hakbah platform announced the closure of its seed round with a value of USD 1.2 million (SAR 4.5 million). The company which specialises in alternative savings and savings groups had the  participation of a group of investors in its funding round, after six months of obtaining the approval of the Saudi Central Bank (SAMA) to launch its commercial services in the Kingdom at the end of July 2020.

Hakbah aims to modernise and ease saving behaviours through the Hakbah App for Savings Groups in a reliable, trusted, and straightforward manner, helping individuals increase their monthly regular saving amounts within the financial system. The company earns the trust of more than 5,000 verified users, whether Saudis or local residents, representing 25 nationalities.

Hakbah confirms that the COVID-19 pandemic has increased the importance of saving for individuals. One of the most prominent saving habits worldwide is the Savings Groups between family and friends (aka. Jamiya). Hakbah estimated the savings groups’ market size in Saudi at more than USD 6 billion (SAR 24 billion) annually. The startup has mentioned that it seeks to make a difference and enable individuals to safely, transparently, and easily control their savings through the Hakbah app.

The investment round comes from the investors’ confidence in Hakbah’s strategic plan and performance, as a first culmination of the work team’s efforts during the last period. A speedup for the next phase’s goals, especially in continuous product development, attracting top talents and accelerating marketing efforts, aim to serve more than 25,000 customers in the coming months. Hakbah extended its thanks to the team of the SAMA’s Sandbox and Saudi FinTech for their support, confidence, and eagerness, and overcoming the obstacles facing companies operating in the financial technology sector.

Hakbah graduated from the DIFC FinTech Accelerator Programme 2019. It signed a strategic partnership agreement with Visa and joined the global ‘Visa’s FinTech Fast Track’ program in September 2020. It seeks to be the preferred platform for alternative savings in the region.