ClearGrid unveils USD $10m funding to reshape MENA debt

ClearGrid has announced a USD $10 million funding round, signalling its official launch from stealth with plans to revamp debt collection in the MENA region through an artificial intelligence-driven platform.

The fintech company aims to address the challenges of the $500 billion MENA consumer lending market, which has seen legacy debt collection processes become increasingly inefficient and outdated. ClearGrid proposes a digital solution that seeks to halve collection costs and double recovery rates, while also providing better outcomes for both lenders and borrowers.

ClearGrid's funding was secured through two separate rounds. The pre-seed round was co-led by Raed Ventures and Beco Capital, while the seed round saw investments from Nuwa Capital and Raed Ventures again. Other notable institutional backers include Aramco's Waed Ventures, KBW Ventures, Sharaka, 9yards Capital, Protagonist, BYLD, Eirad Holdings, Endeavor Catalyst, and Wamda Capital, alongside several prominent angel investors.

The fintech was founded by Khalid Bin Bader Al Saud, Mohammad Al Zaben, and Mohammad Al Khalili, who aimed to pivot debt collection towards a more data-oriented, compassionate model. This approach is seen as crucial for fostering economic growth within the region.

Mohammad Al Zaben, Co-Founder and CEO of ClearGrid, commented, "Collections should be an extension of good lending—not an afterthought. At ClearGrid, we're reimagining debt resolution from the ground up, giving lenders the intelligence and tools they need to recover capital effectively while creating better outcomes for borrowers."

The platform developed by ClearGrid automates various elements of the collection process, from borrower engagement to the negotiation phase. This automation is designed to facilitate scalability for lenders and improve borrower experiences by reducing resolution times and increasing recovery rates.

Since going live in 2024, ClearGrid has managed debt portfolios amounting to hundreds of millions and established relationships with major fintech entities and banks in the Middle East. With a client roster comprising more than ten enterprise clients, the company has also achieved profitability in its UAE operations within its first year of operation.

ClearGrid's service has led to tangible improvements for its users. A prominent UAE bank reportedly doubled borrower engagement, leading to an enhanced 30% recovery rate, while a leading Buy Now Pay Later (BNPL) provider saw a 95% automation in early-stage debt resolution, bolstering performance and achieving a 4.8/5 customer satisfaction rating. These success stories have highlighted the potential for increasing borrower participation when offered more empathetic options such as principal waivers and flexible repayment plans.

Khalid Bin Bader Al Saud, Co-Founder and Chairman of ClearGrid KSA, stated, "Financial systems must evolve with the digital world. Debt resolution should be a bridge to stability, not a roadblock. At ClearGrid, we're redefining collections with a data-driven, technology-first approach that strengthens trust, ensuring credit fuels growth not distress. This is just the first step in building the infrastructure for the future of debt resolution."

The increasing role of digital lending in the MENA region is fuelling demand for efficient, technology-focused collection strategies. The ClearGrid platform is structured to provide unique insights and enhanced borrower experiences, setting out to distinguish itself from traditional collection agencies that rely heavily on manual methods.

Omar Majdouie, Founding Partner at Raed Ventures, remarked, "ClearGrid is tackling a critical pain point in the MENA debt collection industry with a truly innovative approach. Their AI-powered platform not only drives significant operational efficiencies for lenders but also fosters a more positive and sustainable relationship with borrowers. This balance is essential for the healthy growth of the region's digital lending landscape, and we're excited to support their mission to modernize collections and drive financial inclusion across the region."

Khaled Talhouni, Founding Partner at Nuwa Capital, added, "We invest in founders who see inefficiencies as opportunities for reinvention. Khalid, Mohammad, and Mohammed are doing exactly that with ClearGrid—turning debt resolution from a fragmented, outdated process into a unique commercial opportunity. By leveraging AI and automation, they are not just improving collections but fundamentally reshaping how lenders engage with borrowers, setting a new standard for the industry."

ClearGrid's long-term vision includes not only enhancing its current offerings but also addressing broader financial challenges. The fintech firm's roadmap includes developing advanced collection systems using AI and machine learning, creating an enterprise platform for early risk detection and credit orchestration, and exploring new revenue through alternative risk assessments, AI-enhanced debt counselling, and debt consolidation initiatives.