Madfu, a Saudi fintech startup focused on Buy Now, Pay Later (BNPL) services, has raised SAR 95 million ($25.5 million) in a Pre-Series A funding round.
The investment round was led by Afaq Capital, with additional support from several angel investors.
Founded in 2022 by Abdullah Al-Ibrahim, Ahmed Al-Wusheel and Anas Al-Shaqir, Madfu offers simple and transparent payment solutions.
The platform allows customers to split their purchases into up to six instalments without paying interest or hidden fees. Madfu operates under a licence from Saudi Central Bank (SAMA) which shows it follows official financial regulations in Saudi Arabia.
Madfu helps make purchases more affordable for customers while also increasing sales and customer loyalty for merchants.
By connecting directly with merchant systems, Madfu provides a smooth digital checkout experience. It also follows Islamic finance principles and meets all required regulatory standards.
The new funding will help Madfu grow its business further. The company plans to expand its network of merchant partners across Saudi Arabia, improve its operations, and upgrade its technology systems.
Madfu will also invest in developing new Sharia-compliant financial products. These new solutions will be designed to meet the changing needs of customers.
As Saudi Arabia’s fintech sector grows under Saudi Vision 2030, BNPL services are becoming more popular due to the rise of e-commerce and changing payment habits. With strong regulatory support new funding, and more partnerships, Madfu aims to play an important role in expanding flexible and compliant digital payment solutions across the Kingdom.
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