In 2016, members of the Gulf Cooperation Council (GCC) signed the Value Added Tax (VAT) Agreement, paving the way for the introduction of a general tax on consumption across the region. The United Arab Emirates (UAE) and Saudi Arabia became the first member states to adopt the Convention in 2018, and its implementation will require businesses in these regions to file VAT returns regularly for the first time. bottom.
Nadim Alameddin, a UAE resident, he says he saw an immediate opportunity in the accounting space as businesses sought to file returns as required by the new law.This is what drove him to launch Wafek, a startup that first provided accounting services in 2019 and later in 2021 launched a scalable accounting and e-invoicing SaaS solution focused on clients in the UAE and Saudi Arabia.
Wafeq is now seeking new growth opportunities in Egypt while doubling its existing market as companies comply with evolving accounting and financial requirements. The growth plan follows his $3 million seed funding secured in a round led by Raed Ventures and with participation by Wamda Capital.
“We are seeing regulatory changes in Saudi Arabia and Egypt, and that is what we are looking to take advantage of right now … We are also doubling down on existing markets that already have ample traction,” said Alameddin. told TechCrunch.
Egypt and Saudi Arabia now require businesses to comply with electronic invoicing, which has led to a surge in demand for accounting software, he said.
Wafeq is an approved provider in Saudi Arabia and UAE (e-invoicing is not yet mandatory). The startup is also seeking approval from the Egyptian tax authorities. Alameddine said the North African country offers great opportunities for the startup as it is home to millions of small businesses.
Meanwhile, its accounting platform allows clients to easily create VAT returns, manage inventory, calculate payroll, generate invoices, and track expenses. We also generate actionable financial reports and insights for your business.
“We have established ourselves as a complete accounting software for small businesses, businesses looking for a complete accounting solution that includes compliant invoice submission, accounts payable management, or inventory management and payroll services. We offer three different plans to service ,” said Alameddine.
Currently, over 630,000 monthly invoices are generated through the platform, with total monthly invoices exceeding $117 million. They expect this to be huge in the wake of their growth plans.
Commenting on the transaction, Raed Ventures founding partner Talal Alasmari said: “He is happy to assist Wafeq in solving problems that affect thousands of businesses in the region. increase efficiency, increase efficiency, and contribute to economic growth.”