Dubai-based accounting and financial compliance startup, Wafeq, raises $3M • TechCrunch

Dubai-based accounting and financial compliance startup, Wafeq, raises $3M • TechCrunch

In 2016, the Gulf Cooperation Council (GCC) member states signed the Value Added Tax (VAT) settlement paving means for the introduction of the overall levy on consumption throughout the area. The United Arabs Emirates (UAE) and Saudi Arabia turned the primary member states to undertake the treaty in 2018, and its implementation meant that for the primary time companies in these territories had been required to file VAT returns periodically.

Nadim Alameddine, a UAE resident, says he instantly noticed a chance within the accounting house as companies sought to file returns as required by the brand new legislation. This impressed him to launch Wafeq in 2019, a startup that originally provided accounting companies and later, in 2021, launched a scalable accounting and e-invoicing SaaS answer targeted on shoppers in UAE and Saudi Arabia.

Wafeq is now exploring new progress alternatives in Egypt whereas doubling down on its current markets as companies adjust to evolving accounting and financial necessities. The progress plans comply with a $3 million seed funding it has secured in a spherical led by Raed Ventures and participated by Wamda Capital.

“There are regulatory adjustments taking place in Saudi Arabia and Egypt, and that’s what we try to capitalize on in the meanwhile… we’re additionally doubling down on our current markets, the place we have already got good traction,” Alameddine instructed TechCrunch.

Egypt and Saudi Arabia presently require companies to be e-invoicing compliant, which he says has led to a surge in demand for accounting software program, which Wafeq is tapping by means of its enterprise (API) product.

Wafeq is a ratified supplier in Saudi Arabia, and the UAE (e-invoicing isn’t necessary there but). The startup is within the means of looking for approval from the Egyptian Tax Authority too. Alameddine mentioned the North African nation presents huge alternatives for the startup as it’s house to tens of millions of small medium companies.

Dubai-based Wafeq, powering accounting and financial compliance for SMEs, raises $3M seed funding

Wafeq says its powering accounting and financial compliance for SMEs. Image courtesy: Wafeq

Its accounting platform, then again, makes it simple for shoppers to generate their VAT returns, handle stock, payrolls, payments and monitor bills. It additionally generates actionable financial reviews and insights for companies.

“We place ourselves as a full accounting software program for SMEs, and we provide three completely different plans serving companies seeking to ship compliant invoices, handle their accounts payable, or these looking for a full accounting answer that features stock administration and payroll companies,” mentioned Alameddine.

Currently, over 630,000 invoices are created each month by means of its platform, with the full month-to-month invoiced quantities exceeding $117 million. They anticipate this to develop enormously within the wake of its progress plans.

Commenting on the deal, Talal Alasmari, the founding associate of Raed Ventures mentioned; “We are thrilled to again Wafeq as they clear up an issue that impacts 1000’s of companies within the area. The digitalization of accounting practices will really remodel how SMEs right here function, rising operational transparency, creating efficiencies and contributing to financial progress.”