Alaan, a Dubai-based fintech company specializing in AI-driven corporate spend management, has successfully raised $48 million in a Series A funding round. This investment, led by Peak XV Partners (formerly Sequoia Capital India & SEA), marks one of the largest Series A rounds for a fintech in the Middle East and North Africa (MENA) region. The round also saw participation from notable investors, including the founders of 885 Capital, Y Combinator, 468 Capital, and Pioneer Fund. Prominent regional entrepreneurs such as Hosam Arab (Tabby), Mudassir Sheikha (Careem), and Khalid Al Ameri also contributed to the funding.
Origins and Mission
Alaan was founded by former McKinsey consultants Parthi Duraisamy and Karun Kurien to address the inefficiencies in corporate expense management prevalent in the MENA region. Duraisamy’s firsthand experience with cumbersome expense reporting processes during his tenure at McKinsey’s Dubai office highlighted the need for a more streamlined solution. This led to the creation of Alaan, a platform designed to automate and simplify corporate financial operations through artificial intelligence.
Platform Capabilities and Impact
Since its launch 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, Careem, Tabby, and Lulu Group. The platform’s AI capabilities offer advanced features like receipt matching, automated reconciliation, and value-added tax (VAT) extraction. These tools have reportedly saved finance teams over 1.5 million hours of manual labor, a figure expected to rise as the company continues its AI integration.
Funding and Investor Confidence
The $48 million Series A round underscores robust investor confidence in Alaan’s capital-efficient model and customer-centric approach. 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. Alaan’s revenue model has demonstrated strong fundamentals, with $10 million in revenue generated from a $5 million investment.
Expansion and Future Plans
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.
Challenges and Innovations
Despite its success, Alaan’s journey 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.
Broader Implications
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.
