In the rapidly evolving financial landscape of the Middle East and North Africa (MENA), traditional debt collection methods have often lagged, leading to inefficiencies and strained borrower-lender relationships. Addressing this critical issue, ClearGrid, a UAE-based fintech startup, has emerged from stealth mode, announcing a substantial $10 million funding aimed at modernizing debt recovery across the region.
The Funding Milestone
ClearGrid’s impressive $10 million funding was secured through two strategic rounds:
- Pre-Seed Round ($3.5 million): Co-led by Raed Ventures and Beco Capital.
- Seed Round ($6.5 million): Co-led by Nuwa Capital and Raed Ventures.
Additional institutional investors include Aramco’s Waed Ventures, KBW Ventures, Sharaka, 9yards Capital, Protagonist, BYLD, Eirad Holdings, Endeavor Catalyst, and Wamda Capital. The funding round also attracted prominent angel investors, underscoring the confidence in ClearGrid’s innovative approach to debt collection.
Founding Visionaries
Established in May 2023 by co-founders Mohammad Al Zaben (CEO), Khalid Bin Bader Al Saud, and Mohammad Al-Khalili, ClearGrid was born from firsthand experiences with the challenges of traditional debt collection. The founders recognized the industry’s reliance on outdated, aggressive tactics that often led to poor outcomes for both lenders and borrowers. Their vision is to replace these methods with data-driven, compassionate solutions that benefit all parties involved.
Innovative AI-Driven Platform
ClearGrid’s core offering is an AI-powered debt collection platform designed to automate and enhance every step of the recovery process:
- AI-Driven Borrower Engagement: Personalizes interactions to encourage timely repayments.
- Self-Service Tools: Empower borrowers to independently negotiate and manage repayment plans.
- Omnichannel Outreach: Utilizes SMS, email, chat, and app-based notifications for seamless communication.
- Debt Resolution Automation: Employs machine learning to reduce resolution times and improve collection rates.
This comprehensive approach ensures that debt collection becomes an extension of good lending practices, fostering trust and efficiency within the financial ecosystem.
Proven Impact and Client Success
Since its soft launch in 2024, ClearGrid has managed hundreds of millions in debt portfolios and secured partnerships with major fintech firms and leading banks across MENA. The platform’s effectiveness is evidenced by notable client outcomes:
- Leading UAE Bank: Achieved a 30% improvement in debt recovery rates by doubling borrower engagement.
- Major Buy Now, Pay Later (BNPL) Provider: Automated 95% of early-stage debt resolutions without human intervention, resulting in a 4.8 out of 5 customer satisfaction score.
These successes highlight ClearGrid’s ability to deliver measurable improvements in debt recovery while maintaining positive borrower experiences.
Strategic Expansion Plans
Looking ahead, ClearGrid plans to:
- Expand Operations: Enter the Saudi Arabian market in 2025, building on its profitability in the UAE.
- Enhance Services: Develop additional offerings, including AI-powered credit risk assessment, early-stage debt counseling, and a comprehensive credit orchestration platform.
These initiatives aim to further solidify ClearGrid’s position as a leader in modernizing debt collection and supporting financial inclusion across the MENA region.
Conclusion
ClearGrid’s emergence and substantial funding mark a pivotal shift in the MENA debt collection industry. By leveraging advanced AI and compassionate strategies, ClearGrid is setting new standards for efficiency, borrower engagement, and financial system stability. As the region’s consumer lending market continues to grow, ClearGrid’s innovative approach offers a promising solution to the longstanding challenges of debt recovery.
