Alaan, a fintech startup based in the United Arab Emirates, has raised $48 million in one of the largest Series A funding rounds in the Middle East and North Africa (MENA) region. The round was led by Peak XV Partners (formerly Sequoia Capital India & SEA) with participation from notable investors including 885 Capital, Y Combinator, 468 Capital, and Pioneer Fund. Founders of some of Alaan’s unicorn clients, such as Hosam Arab (Tabby) and Mudassir Sheikha (Careem), also took part in the investment.
CEO Parthi Duraisamy highlighted that one of the biggest challenges for the company was navigating regulatory hurdles and establishing banking partnerships in the UAE and Saudi Arabia. It took several years to secure approvals in Saudi Arabia before launching there in early 2025.
Alaan stands out as a pioneer in the region by integrating Apple Pay and OpenAI technologies into its financial solutions. Initially, the company launched a chatbot, but later shifted focus to using AI for automating backend processes such as receipt matching, reconciliation, and VAT extraction to better serve finance teams.
Since its launch in 2022, Alaan has processed over 2.5 million transactions for more than 1,500 finance teams, saving over 1.5 million hours of manual work. The startup is currently profitable, generating $10 million in revenue on $5 million spent.
The company is rapidly expanding in the Saudi Arabian market, doubling transaction volumes monthly over the past six months. The new funding will support growth in sales, customer success, and compliance teams, as well as deepen investment in AI-driven finance automation.
Duraisamy emphasized that investors focus on fundamentals such as capital efficiency, revenue generation, and go-to-market strength. Unlike larger markets like the US and Europe, MENA requires a strong operational foundation, which Alaan has successfully demonstrated to attract this significant investment.
