Mala closes $7mn pre-seed to bolster its PNPL platform

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GHADA.ISMAIL
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Oct 20, 2024
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Riyadh – Sharikat Mubasher: Mala, a pioneering Saudi-based B2B platform, announced a successful closure of a $7 million (SAR 26.25 million) pre-seed funding round.

This was led by VentureSouq, with pan-regional investment firm Shorooq Partners, as well as M Capital, BECO Capital, Access Bridge Ventures, Waad Investment, Palm Ventures, and Silicon Valley-based fund D Global Ventures “DGV”, according to a press release.

Saudi Arabia’s robust economy, with a GDP exceeding $1 trillion, still heavily relies on traditional credit models, where business relationships often outweigh objective risk assessments. Suppliers, especially those serving medium- and large-sized enterprises, frequently encounter significant cash flow constraints due to inadequate credit offerings in terms of volume and duration. Mala was created to bridge this gap with its innovative approach.

Founded in 2024 by Musaab Hakami, Mala is revolutionizing the B2B landscape through its unique "Procure-Now, Pay-Later" (PNPL) solution. This product is customized for the region’s SMEs, as the platform offers buyers flexible credit terms while ensuring suppliers receive immediate cash payments. By leveraging state-of-the-art technology, Mala provides a seamless procurement experience that aligns with the evolving needs of the business community.

Musaab Hakami, Founder and CEO of Mala, remarked: “Suppliers in Saudi Arabia often struggle to extend adequate credit to buyers, as the traditional system relies more on established relationships than comprehensive credit risk evaluations. Mala harnesses data-driven insights to reshape this dynamic, enabling suppliers to be paid upfront while offering buyers flexible payment options tailored to their needs.”

The platform’s proprietary technology captures and analyzes a wide range of data, including financial metrics, legal standing, and market reputation, to deliver precise credit risk assessments. This allows buyers to procure goods on credit while suppliers benefit from immediate liquidity, fostering a healthier and more dynamic B2B ecosystem.

Suneel Gokhale, Co-Founder and General Partner at VentureSouq commented: “There continues to be a massive credit gap in the MENA region, and we are excited about how Mala can help solve this genuine problem, particularly for SMEs in Saudi Arabia. We have had the pleasure of working very closely with Musaab Hakami in various capacities, including while he’s been here at VentureSouq—he’s an incredible operator, and we look forward to continuing to work with him on building Mala.”

The enthusiasm surrounding Mala is already palpable, with a pre-launch pipeline exceeding $100 million in anticipated transaction value. The platform is officially set to launch in Saudi Arabia in Q4 2024. With this substantial capital injection, Mala is poised to transform B2B procurement across the Middle East and beyond, delivering unparalleled value to SMEs and suppliers alike.


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