The global cost management sector is experiencing a tailwind of sorts. North America is arguably the largest market in this space, but space management companies have seen an increase in demand across the globe, as the rise of the Internet, tech advancements and businesses focus on making sure they spend wisely.
Indeed, according to Grand View Research, the space is expected to grow at a CAGR of 10.3% through 2030, and adoption is expected to pick up in other regions such as the Middle East and North Africa (MENA) as companies increasingly adopt cost-effectiveness. Management tools to get a clear picture of where their money is going.
Saudi Arabia-based Simplified Financial Solutions Company (SiFi), one such expense management platform in the MENA region, has now raised $10 million in a seed funding round to double its growth plans in its home market. The round was led by Sanabil Investments, a member of the Saudi Public Investment Fund, and early-stage MENA VC, RAED Ventures.
Founded in 2021 by Ahmed Alhakbani, SiFi helps institutions manage all their expenses, including vendor and bill payments, and is looking to expand its operations after receiving an Electronic Money Institution (EMI) license from the Saudi Central Bank (SAMA) last year. . The company plans to tap the license to offer a suite of services including e-wallets and smart corporate cards.
Alhakbani told TechCrunch that he thought of starting SiFi when he was working as the head of customs in Saudi Arabia. He saw first-hand how expenditure management was fragmented at headquarters and state entry points – making it doubly difficult to track and control expenditure, and also leaving room for abuse.
SiFi’s product allows its customers to control their corporate card usage and limit spending at the merchant or geographic level. The platform enables employees, especially those who do not use corporate cards, to submit reimbursement requests, their expenses and invoices.
Alhakbani said the platform helps companies avoid expense management issues such as human error, fraud, lack of proper workflow, approval delays and lack of expense visibility. “We believe SiFi can play a very important role in enabling finance departments to be more effective in their ability to serve the rest of the company. We want to go beyond just expenses to a full suite of expense solutions across the company,” he said.
He said SiFi is building a solution that will go beyond Saudi Arabia because its technology stack allows it to integrate into any market. However, he noted that growth outside of Saudi Arabia will be targeted.
SiFi’s competitors in the MENA region include Saudi’s Sanad, UAE-based Pemo, which raised a significant seed round in 2022, and Alan.
Other investors participating in SiFi’s seed round include anb Seed, Rua Ventures, Byld and KBW Ventures and existing VCs Khwarizmi Ventures, Seedra Ventures and Tech Invest Com.
SiFi joins a growing list of Saudi startups that have raised good money this year, even as VCs have slowed activity globally. The country continues to lead in terms of venture investment in the MENA region, driven by the government’s push to create an enabling environment for innovators and businesses as it seeks to diversify its revenue streams and reduce its dependence on oil.