In 2016, the Gulf Cooperation Council (GCC) member states signed the Worth Added Tax (VAT) settlement paving means for the introduction of the final levy on consumption throughout the area. The United Arabs Emirates (UAE) and Saudi Arabia grew to become the primary member states to undertake the treaty in 2018, and its implementation meant that for the primary time companies in these territories have been required to file VAT returns periodically.
Nadim Alameddine, a UAE resident, says he instantly noticed a possibility within the accounting area as companies sought to file returns as required by the brand new legislation. This impressed him to launch Wafeq in 2019, a startup that originally supplied accounting providers and later, in 2021, launched a scalable accounting and e-invoicing SaaS answer centered on shoppers in UAE and Saudi Arabia.
Wafeq is now exploring new development alternatives in Egypt whereas doubling down on its present markets as companies adjust to evolving accounting and monetary necessities. The expansion plans observe a $3 million seed funding it has secured in a spherical led by Raed Ventures and took part by Wamda Capital.
“There are regulatory adjustments taking place in Saudi Arabia and Egypt, and that’s what we are attempting to capitalize on in the mean time… we’re additionally doubling down on our present markets, the place we have already got good traction,” Alameddine informed TechCrunch.
Egypt and Saudi Arabia at the moment require companies to be e-invoicing compliant, which he says has led to a surge in demand for accounting software program, which Wafeq is tapping by way of its enterprise (API) product.
Wafeq is a ratified supplier in Saudi Arabia, and the UAE (e-invoicing shouldn’t be necessary there but). The startup is within the strategy of in search of approval from the Egyptian Tax Authority too. Alameddine stated the North African nation affords huge alternatives for the startup as it’s residence to thousands and thousands of small medium companies.
Its accounting platform, then again, makes it simple for shoppers to generate their VAT returns, handle stock, payrolls, payments and monitor bills. It additionally generates actionable monetary studies and insights for companies.
“We place ourselves as a full accounting software program for SMEs, and we provide three totally different plans serving companies trying to ship compliant invoices, handle their accounts payable, or these in search of a full accounting answer that features stock administration and payroll providers,” stated Alameddine.
Presently, over 630,000 invoices are created each month by way of its platform, with the full month-to-month invoiced quantities exceeding $117 million. They anticipate this to develop enormously within the wake of its development plans.
Commenting on the deal, Talal Alasmari, the founding companion of Raed Ventures stated; “We’re thrilled to again Wafeq as they clear up an issue that impacts 1000’s of companies within the area. The digitalization of accounting practices will really rework how SMEs right here function, growing operational transparency, creating efficiencies and contributing to financial development.”