Dubai-based company Wafeq secures $7.5 million in Series A funding to expand its cloud-based accounting software for small and medium-sized enterprises (SMEs)
Dubai, United Arab Emirates — Wafeq, an accounting and invoicing software startup based in Dubai, has successfully raised $7.5 million in a Series A funding round. The funding will be used to fuel the company's growth strategy, focusing on expanding its AI-driven automation, compliance, and partner ecosystem across the Gulf region.
Founded in 2019 by Nadim Alameddine, Wafeq aims to provide tools for small and medium-sized enterprises (SMEs) and accounting firms to stay compliant and run their businesses more efficiently. The company's software is designed for business owners and accountants, helping them manage various financial aspects such as sending invoices, quotes, and purchase orders, managing inventory and payroll, and generating financial reports.
Wafeq has already grown to over 8,000 customers across different sectors in less than 2.5 years. The startup plans to grow its presence in the Kingdom of Saudi Arabia (KSA) and the UAE, supporting job creation and digitization in line with Vision 2030.
AI and Automation Enhancements
Wafeq leverages AI to automate expense categorization, VAT reconciliation, bulk payment processing, and real-time financial reporting. The AI system continuously learns from user corrections to improve accuracy and efficiency over time.
Compliance and Regional Adaptation
Recognizing the importance of compliance in the fast-evolving Gulf regulatory landscape, Wafeq builds tailored compliance features specific to Saudi Arabia and the UAE. The software seamlessly integrates with regional e-invoicing systems like ZATCA and FTA, ensuring companies maintain real-time adherence to VAT and corporate tax rules.
Partnership and Channel Growth
Wafeq accelerates growth by partnering with accounting firms and business service providers. The company's Partners Program helps firms automate workflows, scale services, and gain new clients rapidly. Strategic partnerships with corporate tax service providers, such as Tax Star, streamline tax-related compliance and data integration for SMEs.
Customer-Centric Platform Development
Wafeq emphasizes flexibility, user-friendliness, and real-time collaboration with clients. This allows accounting firms and their customers to gain better financial oversight, faster audit preparation, and improved reporting accuracy, transforming accounting from a reactive task into a strategic business advantage.
Technology Integration
Beyond AI, Wafeq incorporates Optical Character Recognition (OCR) technology to automate invoice and receipt data capture, reducing manual entry errors and accelerating accounting cycles. This supports more timely and accurate financial management and audit trails.
With these key elements, Wafeq's post-Series A growth strategy centers on deepening AI and automation capabilities, expanding compliance-driven features tailored for Gulf markets, building a strong partner network, and enhancing user experience through advanced technologies like OCR and real-time reporting. This multi-pronged approach aims to drive scalability, regional market penetration, and positioning as a leading accounting automation platform in the UAE, Saudi Arabia, and broader Gulf Cooperation Council (GCC) countries.
The funding round was led by London-based 9900 Capital, with participation from Gary Turner, the former CEO of Xero's EMEA operations, and existing investors Raed Ventures and Wamda Capital. Wafeq offers different plans, starting from $180 per year or $29 per month, and offers integrations with various banks in UAE & Saudi, including Saudi Awwal Bank, Al Rajhi Bank, HSBC, and Wio, and Stripe, Foodics, and Salla.
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