Alaan Secures $48M Series A for MENA Expansion Driven by AI Innovation

A landmark funding milestone has been reached in the Middle East and North Africa (MENA) fintech sector as Alaan, an AI-powered corporate expense management platform, secured a $48 million Series A round. This funding, led by Peak XV Partners—formerly known as Sequoia Capital India & SEA—has positioned Alaan as one of the most significant fintech ventures in the region. The investment includes participation from notable fintech founders, venture capital firms such as Y Combinator and 468 Capital, and unicorn alumni including Hosam Arab of Tabby and Mudassir Sheikha of Careem [1].

Alaan was founded to address a longstanding challenge in the region: inefficient corporate expense management. Co-founder and CEO Parthi Duraisamy identified the problem during his time at McKinsey’s Dubai office, where he witnessed firsthand the cumbersome process of manual expense reporting and reconciliation. This insight drove the development of a platform designed to automate and streamline corporate financial operations, leveraging artificial intelligence to improve efficiency and reduce administrative burdens [1].

The platform’s AI capabilities have enabled a suite of advanced features, including receipt matching, automated reconciliation, and value-added tax (VAT) extraction. These tools have reportedly saved finance teams over 1.5 million hours in manual labor, a figure expected to rise as the company continues its AI integration [1]. Since launching in 2022, Alaan has processed over 2.5 million transactions for more than 1,500 companies across the region, including major enterprises such as G42, Lulu Group, and Careem [1].

Despite the company’s success, expansion has not been without challenges. Regulatory hurdles and the necessity of securing banking partnerships delayed entry into key markets such as the UAE and Saudi Arabia. Nevertheless, Alaan’s persistence and innovation, including the integration of Apple Pay into its B2B offerings, have enabled it to establish a strong market presence [1].

The $48 million Series A round marks one of the largest of its kind for a fintech in the MENA region, signaling robust investor confidence in the company’s capital-efficient model and customer-centric approach. Alaan’s revenue model has demonstrated strong fundamentals, with $10 million in revenue generated from a $5 million investment [1]. GV Ravishankar, Managing Director at Peak XV, highlighted the company’s ability to build tailored solutions for modern finance teams, reinforcing its position as a category leader in the region [1].

With the new funding, Alaan is accelerating its expansion, particularly in Saudi Arabia, where transaction volumes have doubled month-over-month for six consecutive months. The investment will be used to scale operations across sales, customer success, and compliance teams, as well as to further develop its AI-driven automation capabilities. While the company remains focused on foundational metrics—such as revenue generation and capital efficiency—it is also positioning itself for long-term growth in a rapidly evolving market [1].

Alaan’s success reflects a broader trend of innovation in the MENA fintech space, where digital solutions are increasingly addressing traditional inefficiencies in finance. By combining AI with a deep understanding of regional business needs, Alaan has not only achieved profitability but also set a precedent for sustainable fintech development in the region [1].

Source: [1] AI-powered Fintech Alaan Secures Landmark $48M Funding for MENA Expansion (https://coinmarketcap.com/community/articles/6891bea5209b7b6a4565b37d/)