Hakabah, a Kingdom of Saudi Arabia-based financial technology major, has secured seed funding worth $ 1.2 million. The development comes six months after the Saudi Central Bank (SAMA) provided regulatory approvals to the bank in order to operate in the Kingdom. However, the investors behind the funding have not been disclosed.
The company which is incorporated in 2018, specialises in alternative savings and savings groups.
Nabeel Koshak, CEO at Saudi Venture Capital, told the media, “Saudi Arabia is witnessing an increase in the quality and quantity in the deal flow of startups. I am thrilled by the distinguished entrepreneurs who are creating fast growth and scalable startups. Despite the slowdown of (the coronavirus disease) COVID-19, Saudi Arabia saw a record increase in venture capital funding (55 percent) in 2020 compared with 2019.”
The Kingdom has been a hotbed for startup investment as it recorded a y-o-y growth of 35 percent in the number of investment deals in the tech startup segment in 2020. It is reported that the Kingdom managed to attract 18 percent of the 496 investment deals throughout the MENA in 2020.
Furthermore, 68 percent of the total deals were secured in economies such as the Kingdom, the Emirates and Egypt. The kingdom recorded 55 percent surge to $ 152 million when it came to minatory value of deals.
The Pandemic has walloped many startups like Hakabah. Global startups will expect to rebound this year with vaccination rollout against the Covid-19.