Alaan, a Dubai-based fintech founded by two former McKinsey & Co. consultants, has secured $48 million in Series A funding. The investment highlights the rising momentum in the Middle East’s startup ecosystem and growing global investor interest in regional fintech innovation.
The funding round was led by Peak XV Partners (formerly Sequoia Capital India & Southeast Asia) and attracted participation from Y Combinator, 468 Capital, Pioneer Fund, and the founders of 885 Capital. While Alaan hasn’t disclosed its valuation, the scale of the investment makes this one of the largest Series A rounds in the region this year.
What Does Alaan Do?
Founded in 2022 by Parthi Duraisamy and Karun Kurien, Alaan is redefining how companies manage business expenses. It offers a comprehensive suite of tools to streamline spend management, including:
- ✅ Corporate Cards – Tailored for company spending
- ✅ AI-Powered Automation – Reduces manual workflows
- ✅ Centralized Dashboards – Gives finance teams real-time visibility and control
To date, the platform has processed over 2.5 million transactions and already boasts big-name clients like Abu Dhabi’s AI firm G42 and Lulu Group, one of the region’s largest retail chains.
Fueling Regional Expansion
The company plans to use the fresh capital to accelerate its expansion in Saudi Arabia, a market quickly emerging as a fintech and digital economy leader in the region.
This move is timely, as more Gulf-based enterprises seek modern, localized financial solutions. Alaan’s approach, automating spend management using cutting-edge AI, positions it well to scale quickly in these growing markets.
VC Confidence Is Returning to the Middle East
Alaan’s funding success is part of a larger trend in the Middle East’s venture capital scene. According to data from Magnitt, startups in the region raised $1.35 billion in the first half of 2025, nearly double the figure from the same period in 2024.
Key trends from the latest funding cycle include:
- ✅ Saudi Arabia and UAE leading the investment charts
- ✅ Fintech dominating the sector with triple the year-on-year funding
- ✅ Continued entry of global investors seeking MENA-based opportunities
This upward trend contrasts sharply with global emerging markets, where startup funding fell to $3.98 billion, the weakest H1 since 2017.
A Competitive Global Landscape
Alaan’s rise comes amid global excitement in the expense management space. Just last week, New York-based Ramp raised $500 million at a valuation of $22.5 billion. In effect, this is showing investor appetite for fintech infrastructure remains strong.
Inside the Middle East, Dubai-based Xpanceo also made headlines recently. In fact, it had raised $250 million for its futuristic smart contact lens technology. Together, these rounds underscore a rebound in venture capital interest after a cautious few years.