Wafeq, a UAE-based modern and easy-to-use accounting platform, has raised a $3 million in seed round led by Raed Ventures and saw participation from Wamda Capital, both of which are two of the most prominent names in the region’s early-stage funding ecosystem.
Built for the unmet finance and accounting needs of small and medium businesses in the Middle East, this fundraiser will fuel Wafeq’s entry into Egypt, while doubling down on its presence in Saudi Arabia and the UAE. Businesses using Wafeq create over 630,000 invoices every month, with total monthly invoiced amounts exceeding $117 million.
With the digitization of accounting practices in Saudi Arabia and Egypt and the introduction of corporate tax in the UAE, the three largest economies in North Africa and the GCC are undergoing a significant shift in financial reporting. Wafeq meets every requirement of Saudi Arabia’s Zakat, Tax and Customs Authority (ZATCA), the UAE’s Federal Tax Authority, and soon the Egyptian Tax Authority.
“Thriving small and medium businesses continue to power the engines of our economy. However, as they grow, they need to comply with current and new accounting regulations in this dynamic ecosystem. With Wafeq, we are simplifying and reimagining accounting compliance for business owners and accountants. Together with the backing of Raed Ventures and Wamda Capital, we are excited about our entry into Egypt while growing our presence in Saudi Arabia and the UAE.”
Wafeq’s technology helps businesses run better, by staying compliant with existing and new laws without losing focus on their core operations. The company’s platform streamlines the entire accounting process for its clients, from building records to tracking sales and invoicing, to automating bank transactions and generating reports. With its recent funding, Wafeq will continue to innovate and build new product functionalities, while also focusing on customer acquisition and hiring strategically across technical and non-technical roles.
Wafeq also offers a standalone e-invoicing API enabling businesses to stay compliant with e-invoicing regulations while maintaining their existing accounting software. This solution will allow startups and large businesses that require a reliable third party to manage the complexities of e-invoicing, which legacy solutions cannot meet.