Spend management startup SiFi raises $10M to grow further in Saudi Arabia | TechCrunch

The global expense management sector is experiencing a tailspin. North America is arguably the largest market in the region, but expense management companies have seen a rise in demand worldwide, thanks to growing internet penetration, technological advancements, and businesses’ growing focus on spending wisely.

In fact, this space is expected to grow at a compound annual growth rate 10.3% by 2030, and will be adopted in other regions as well, according to Grand View Research like the Middle East and North Africa (MENA) is expected to grow as companies increasingly adopt expense management tools to get a clear view of how their funds are being used.

Saudi Arabia-based Simplified Financial Solutions Company (Syfy), a similar expense management platform in the MENA region, has now raised $10 million in a seed funding round to double down on its growth plans in its domestic market. The round was led by Sanabil Investments, a member of Saudi’s Public Investment Fund, and early-stage MENA VC, RAED Ventures.

Established in 2021 Ahmad AlhaqbaniSiFi helps organizations manage all their expenses, including vendor and bill payments, and it 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 use the license to provide a set of services, including an e-wallet and smart corporate card.

Alhaqbani told TechCrunch that he thought of starting Sify when he was working as the head of customs in the Kingdom of Saudi Arabia. He saw firsthand how fragmented expense management was at headquarters and the kingdom’s entry points — making it doubly difficult to track and control expenses, and even leaving room for abuse.

SiFi’s product allows its customers to control the use of their corporate cards and limit spending at the merchant or geographic level. The platform also enables employees, especially those who do not use corporate cards, to submit reimbursement requests, their expenses and invoices.

Alhaqbani said the platform helps companies avoid expense management problems such as human error, fraud, lack of proper workflow, delays in approvals and lack of expense visibility. “We believe Sify can play a very important role in helping finance departments become more effective in their ability to serve the rest of the company. We want to go beyond just expenses to a whole suite of expense solutions within a company,” he said.

He added that SiFi is building a solution that will expand beyond Saudi Arabia as its technology stack allows it to integrate into any market. However, he also added that development will be targeted outside of Saudi Arabia.

SiFi’s competitors in the MENA region include Saudi-based Sanad, UAE-based Paymo, which raised a significant seed round in 2022, and Alan.

Other investors who participated in Sify’s seed round include ANB Seed, Rua Ventures, BILD and KBW Ventures, and existing VCs Khwarizmi Ventures, Seadra Ventures and Tech Invest Com.

SiFi joins a growing list of Saudi startups that have raised a good deal of money this year, while VCs have cut back their activities globally. take the lead The context of venture investment in the MENA region, driven by government efforts Create It is a favorable environment for innovators and businesses, as it seeks to diversify its revenue sources and reduce its dependence on oil.