Saudi fintech startup Madfu has secured SAR 95 million, equal to $25.5 million, in a Pre Series A round. Afaq Capital led the investment, with participation from several angel investors. The funding strengthens Madfu’s position in Saudi Arabia’s fast growing Buy Now, Pay Later market.
Founded in 2022 by Abdullah Al Ibrahim, Ahmed Al Wusheel, and Anas Al Shaqir, Madfu offers interest free installment payments. The company operates under a license from the Saudi Central Bank. This regulatory backing builds trust and ensures compliance with national financial standards.
A Sharia Compliant BNPL Model
Madfu focuses on transparency and simplicity. It allows customers to split purchases into up to six installments without hidden fees. The model follows Islamic finance principles and avoids interest based charges.
Core benefits include:
- Interest free installment plans
- Clear and upfront pricing
- No hidden costs
- Full regulatory compliance
This structure attracts consumers who seek flexible and ethical financial solutions. It also supports Saudi Arabia’s push toward inclusive digital finance.
Strengthening the Merchant Ecosystem
Madfu does not only serve consumers. It also empowers merchants. The platform helps businesses increase conversion rates and boost customer loyalty.
Key merchant advantages include:
- Higher average order values
- Improved customer retention
- Faster sales cycles
- Better cash flow visibility
As more retailers adopt digital payments, merchant integration becomes critical. Madfu plans to expand partnerships across retail, services, and e commerce sectors.
Funding to Accelerate Growth
The new capital will drive the company’s next growth phase. Madfu plans to:
- Expand operations across Saudi Arabia
- Scale its technology infrastructure
- Develop new Sharia compliant financial products
- Strengthen its merchant network
The company will also enhance its digital platform. It aims to improve transaction speed, optimize user experience, and ensure seamless payment flows.
Leadership sees product innovation as a priority. The team plans to launch solutions that match evolving consumer needs while staying aligned with Islamic finance principles.
Positioned for Saudi’s Fintech Expansion
Saudi Arabia’s fintech sector continues to expand under Vision 2030. Regulators actively support digital payments and financial innovation. Consumer behavior also shifts toward online shopping and flexible payment options.
BNPL adoption has accelerated due to:
- Rising e commerce activity
- Increased smartphone penetration
- Demand for budget friendly payment plans
- Strong regulatory frameworks
Madfu stands at the center of this transformation. Its licensed status, Sharia compliant model, and growing merchant base give it a competitive edge.
With fresh capital and clear strategy, Madfu aims to shape the next phase of Saudi digital payments. The company seeks to build a reliable, transparent, and scalable BNPL ecosystem that supports both businesses and consumers.
Saudi Arabia moves steadily toward a cashless economy. Madfu plans to play a major role in that journey.