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

In 2016, the Gulf Cooperation Council (GCC) member states signed the Worth Additional Tax (VAT) settlement paving way for the introduction of the general levy on usage throughout the region. The United Arabs Emirates (U.A.E) and Saudi Arabia became the to start with member states to adopt the treaty in 2018, and its implementation meant that for the 1st time enterprises in these territories had been essential to file VAT returns periodically.

Nadim Alameddine, a U.A.E resident, claims he quickly noticed an prospect in the accounting area as firms sought to file returns as essential by the new regulation. This encouraged him to launch Wafeq in 2019, a startup that originally made available accounting solutions and later on, in 2021, launched a scalable accounting and e-invoicing SaaS remedy targeted on consumers in U.A.E and Saudi Arabia.

Wafeq is now exploring new growth prospects in Egypt whilst doubling down on its current markets as organizations comply with evolving accounting and money needs. The growth plans observe a $3 million seed funding it has secured in a spherical led by Raed Ventures and participated by Wamda Cash.

“There are regulatory changes going on in Saudi Arabia and Egypt, and that is what we are hoping to capitalize on at the moment… we are also doubling down on our present markets, exactly where we by now have very good traction,” Alameddine told TechCrunch.

Egypt and Saudi Arabia at this time call for companies to be e-invoicing compliant, which he says has led to a surge in demand from customers for accounting software, which Wafeq is tapping via its organization (API) product or service.

Wafeq is a ratified company in Saudi Arabia, and the UAE (e-invoicing is not required there still). The startup is in the system of looking for approval from the Egyptian Tax Authority way too. Alameddine stated the North African nation presents enormous possibilities for the startup as it is dwelling to tens of millions of little medium corporations.

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

Wafeq states its powering accounting and fiscal compliance for SMEs. Graphic courtesy: Wafeq

Its accounting system, on the other hand, helps make it quick for customers to crank out their VAT returns, control stock, payrolls, bills and track expenses. It also generates actionable economical reviews and insights for businesses.

“We posture ourselves as a whole accounting application for SMEs, and we give 3 diverse strategies serving enterprises wanting to send compliant invoices, take care of their accounts payable, or those searching for a entire accounting option that incorporates stock administration and payroll services,” reported Alameddine.

Presently, over 630,000 invoices are developed just about every thirty day period as a result of its platform, with the complete month-to-month invoiced quantities exceeding $117 million. They foresee this to develop enormously in the wake of its development plans.

Commenting on the deal, Talal Alasmari, the Founding Associate of Raed Ventures mentioned “We are thrilled to again Wafeq as they address a trouble that impacts countless numbers of organizations in the area. The digitalisation of accounting procedures will definitely rework how SMEs listed here function, raising operational transparency, generating efficiencies and contributing to economic development.”