Wafeq raises funds from Raed Ventures and Wamda Capital to accelerate North Africa entry and GCC expansion.
Wafeq, a modern and intuitive accounting platform, has announced the completion of its USD 3 million seed round. The Dubai-based company’s seed round was led by Raed Ventures with participation from Wamda Capital.
Wafeq: A range of accounting tools
Wafeq is designed to address the unmet finance and accounting needs of small and medium businesses in the Middle East. The new funds will be used to fuel Wafeq’s entry into Egypt, while increasing its presence in Saudi Arabia and the UAE. Wafeq is currently used by businesses to create over 630,000 invoices every month, with total monthly invoiced amounts exceeding USD 117 million.
The platform allows businesses to manage invoicing, VAT, purchasing, payroll, employee expense claims and fixed assets along with a range of other tools and services. Wafeq is used by organizations of all sizes, from single-person companies to VC-funded startups, but is tailored towards SMEs.
Launched in 2019, Wafeq initially focused on startups and acquired customers in category-leading businesses such as Tabby, Lean Technologies, DAPI, Fenix, PiFlow, Ziina, Platinum List and Invygo. It then quickly expanded to long-tail SMEs in a diverse range of industries, including contracting, food and beverage, ecommerce, retail, and more.
The importance of SMEs
According to the company, in Egypt, Saudi Arabia and the UAE, SMEs make up over 90% of all registered companies. Wafeq believes that the majority of these businesses are using legacy software that does not address country-specific requirements. The company’s platform aims to address this issue. Nadim Alameddine, CEO and founder of Wafeq, said, “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.”
Digitization and compliance
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.
Wafeq’s technology helps businesses stay 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.