• Alaan’s platform allows businesses to instantly issue physical and virtual cards for managing all their business expenses.
• These include e-commerce transactions, SaaS subscriptions, vendor payments, government services, or in-store purchases.
Image: COURTESY
UAE-based fintech, Alaan, has raised $4.5 million in pre-series A funding backed by Presight Capital, Y Combinator, and angel investors.
The spend management platform for Middle Eastern businesses has also raised $7 million in equity together with last year’s $2.5 million seed round.
Alaan’s platform allows businesses to instantly issue physical and virtual cards for managing all their business expenses.
These include e-commerce transactions, SaaS subscriptions, vendor payments, government services, or in-store purchases.
Commenting on the latest investment round, Alaan co-founder and CEO Parthi Duraisamy said that they have launched and expanded quickly since their last financing round.
He added that they have also been able to introduce remarkable product innovations including AI-powered workflow automation for managing spend and seamless accounting sync.
“With the new funds, we are excited to further enhance our offering and expand our reach in new markets as we continue to help businesses improve their efficiency, productivity, and employee experience through Alaan,” Parthi said.
The platform’s physical and virtual cards are set up with daily or monthly spending limits and can be locked to be used only with specific merchants such as fuel stations.
The platform eliminates the need for expense reports, and petty cash and automates bookkeeping tasks via seamless integration with leading accounting solution providers.
These include Xero, QuickBooks, and Microsoft Dynamics.
Washmen co-founder and Alaan client Jad Halaoui said that the platform has shaved off hours from team members in operations, accounting, finance as well as marketing.
“Alaan has transformed the way money flows and is controlled at Washmen,” Jad said.
“Their product shows they have a deep understanding of what companies need to streamline their finances and governance with simplicity.”
Presight Capital’s general partner and co-founder Fabian Hansen said that the impressive traction that Alaan has achieved within the first three months of launch has only served to reinforce their belief.
“We have chosen to double down on our investment to support their expansion in the Middle Eats,” Hansen said.
Alaan has seen stellar growth since its launch in August 2022.
Founded by Parthi Duraisamy and Karun Kurien, there are currently more than 100 businesses in the UAE benefitting from Alaan’s platform.
Alaan crossed double-digit millions in payment volume within three months of its launch and averaged a monthly growth of 500 per cent in 2022.
Alongside international growth, Alaan plans to enhance its product with new features including automated invoice payments to domestic and international suppliers.