Procure-Now, Pay-Later platform Mala has closed a $7M seed round to transform B2B procurement in KSA

Mala, a Saudi-based B2B ‘Procure-Now, Pay-Later’ start-up company has bagged $7 Million in pre-seed funding to help solve working capital-related issues of the Saudi Arabian SMEs and its suppliers.

Mala, a Saudi Arabian business-to-business marketplace, has closed a pre-seed round with $7 Million. This investment round was led by VentureSouq, followed by Shorooq Partners and other investors in the round.

Targeting the overall B2B market of digital goods, the company is to offer the so-called ‘Procure-Now, Pay-Later’ solution that fits the existing needs of small and medium enterprises (SMEs).

Related Content: BNPL startup Tabby brings $58 Million at a valuation of $660 Million

Saudi Arabia, currently boasting a $1 trillion economy, still depends on conventional credit risk models. There are accounts receivable problems, especially among suppliers who extend their credit to larger firms. Mala enables buyers to make direct purchases on credit while ensuring suppliers receive immediate payment.

Developing Better Credit – Use of Innovative Technology:

Musaab Hakami founded Mala in 2024, using data analysis to assess credit risks. It uses financial ratios, legal status, and business image in an attempt to bring proper credit solutions. This means that a more fluid B2B environment is formed that will enable suppliers to address their cash flow issues while allowing buyers to implement an extended credit period.

People who invest in Mala are positive. Mala’s platform will launch in the last quarter of 2024, with a pre-launch transaction pipeline already exceeding $100 million. Other investors, including Shorooq Partners, also fund Mala to transform the procurement process in the whole of the Middle East region.

Launched in 2017, Shorooq Partners is one of the most prominent players in the MENA market that invested in a range of disruptive startups. Ken’s experience working for sectors under technology such as fintech software, and Web 3.0 compliments Mala’s vision of revamping B2B procurement in Saudi Arabia.

Image Credit: Mala