Alaan Raises $48M Series A to Accelerate AI-Powered Spend Management in MENA
Alaan Raises $48M Series A to Accelerate AI-Powered Spend Management in MENA
Alaan, a leading AI-driven fintech startup based in the Middle East, has announced a $48 million Series A funding round—one of the largest for a fintech in the MENA region. The funding round was led by Peak XV Partners, previously known as Sequoia Capital India & SEA, with participation from prominent investors such as the founders of 885 Capital, Y Combinator, 468 Capital, and Pioneer Fund. Notably, the round also included investments from influential regional entrepreneurs, including Hosam Arab (Tabby), Mudassir Sheikha (Careem), and well-known YouTuber Khalid Al Ameri.
Solving Corporate Spend Management Challenges in MENA
Alaan was founded by Parthi Duraisamy and Karun Kurien, both former McKinsey consultants, after experiencing firsthand the challenges of managing corporate expenses in the Middle East. Traditional corporate cards, like American Express, were often not accepted, leading to out-of-pocket spending and tedious manual expense reconciliations.
Today, Alaan offers a comprehensive spend management platform tailored for finance teams across the region. Since its launch in 2022, the platform has processed over 2.5 million transactions for more than 1,500 organizations, including major enterprises such as G42, Careem, Tabby, and Lulu Group.
AI at the Core: Automating Finance for Modern Teams
Alaan’s platform stands out for its deep integration of AI to automate critical finance processes. While early attempts at conversational AI interfaces saw limited traction, the company quickly pivoted to use AI behind the scenes. Today, Alaan’s AI solutions handle receipt matching, transaction reconciliation, and VAT extraction—a particularly valuable feature in a region with complex tax regulations. The company estimates its tools have already saved finance teams over 1.5 million hours of manual work.
Overcoming Regulatory and Market Hurdles
Building Alaan’s presence wasn’t without obstacles. After raising a $2.5 million seed round in 2021, regulatory complexities and the need for banking partnerships in the UAE delayed launch by nearly a year. Expanding into Saudi Arabia came with its own challenges, taking years to secure necessary approvals. Despite these barriers, Alaan’s persistence paid off, with the company launching in Saudi Arabia in early 2025 and seeing rapid transaction growth month-over-month since then.
Growth, Profitability, and Future Plans
Unlike many fintechs that prioritize payment volumes, Alaan has focused on capital efficiency and disciplined revenue growth. The company is already profitable, having spent $5 million to generate $10 million in revenue. Backed by top mentors from Y Combinator, Alaan now aims to use the new funding to expand its team in sales, customer success, and compliance, and to further develop its AI-powered finance automation tools.
Looking ahead, Alaan is set to deepen its footprint in Saudi Arabia and across the region, providing modern finance teams with advanced AI agents to streamline corporate spending and compliance. The company’s performance and capital efficiency have positioned it as a clear category leader in MENA’s fintech landscape.
