Saudi startup Mala secures $7 million in pre-seed funding for its B2B installment payment solution
In the bustling financial landscape of Riyadh, a new player has emerged to shake up the game. Mala, a fintech company, has recently secured $7 million in a pre-seed round, aiming to revolutionise the way businesses manage their cash flow and access credit.
Musaab Hakami, one of the most active angel investors in the region, founded Mala earlier this year. Hakami, who also serves as a Venture Partner at VentureSouq and is the CEO of Mala, has previously worked as a General Partner at VentureSouq's fintech fund.
So, what does Mala offer? The company provides a buy now, pay later (BNPL) platform, leveraging advanced digital tools to enable businesses to spread payments over time. This innovative approach ensures suppliers are paid promptly while providing buyers with flexible credit terms that meet their needs.
Mala currently offers 30- and 60-day payment terms and supports purchases across all channels: online, over the phone, and in-store. This flexibility not only improves cash flow for businesses but also makes it more affordable for them to access necessary goods or services.
The funding round was led by VentureSouq and joined by Beco Capital, M Capital, Access Bridge Ventures, Palm Ventures, Shorooq Partners, Waad Investment, and D Global Ventures. Hakami stated that this funding is a testament to the hard work and dedication of the Mala team.
In the broader Saudi fintech ecosystem, BNPL platforms like Rize, which offers “Rent Now, Pay Later,” are becoming increasingly popular. These platforms use technology to split payments into manageable installments, benefiting both customers and merchants. Mala likely employs similar technological frameworks to provide its BNPL services.
However, traditional methods in the Kingdom often pose challenges for suppliers in offering credit to businesses, as they rely more on relationships rather than thorough risk assessments. Mala addresses this issue by using technology and big data to tailor credit terms to business needs, allowing them to access credit with manageable installment options directly at the point of sale.
While specific technical details about Mala’s platform were not found in the provided search results, it's clear that Mala is set to make a significant impact on the Saudi fintech scene with its innovative BNPL solution. As the company continues to grow and evolve, we can expect to see more exciting developments from Mala in the future.
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