ClearGrid has officially launched, emerging from stealth mode with $10 million in funding aimed at transforming the debt collection industry across the MENA region. This comes at a time when the region’s consumer lending market is valued at $500 billion and is facing increasing pressure from tightening consumer protection regulations. Traditional debt collection methods, characterized by manual processes and aggressive tactics, have proven ineffective, costing lenders billions and harming borrower relationships.

The funding for ClearGrid was secured through two rounds, with the pre-seed round co-led by Raed Ventures and Beco Capital, and the seed round co-led by Nuwa Capital and Raed Ventures. Additional institutional investors include Aramco’s Waed Ventures, KBW Ventures, Sharaka, 9yards Capital, Protagonist, BYLD, Eirad Holdings, Endeavor Catalyst, and Wamda Capital, along with notable angel investors from the tech industry.

Co-founders Khalid Bin Bader Al Saud, Mohammad Al Zaben, and Mohammad Al Khalili emphasized that debt collection is primarily an information and coordination issue. They aim to replace outdated and aggressive tactics with data-driven, compassionate solutions that foster better outcomes for both lenders and borrowers. Co-Founder & CEO Mohammad Al Zaben stated, “Collections should be an extension of good lending—not an afterthought,” highlighting ClearGrid’s commitment to innovative debt resolution strategies.

ClearGrid’s AI-powered platform automates the entire recovery process, enhancing borrower engagement and significantly reducing resolution times. Since its launch in 2024, the company has managed hundreds of millions in debt portfolios and formed partnerships with major fintech companies and banks in the Middle East. The startup has signed over 10 enterprise clients and plans to expand its operations into the KSA market while continuing to grow revenue in the UAE. Remarkably, ClearGrid achieved profitability in its UAE operations within just one year of launch, although the focus remains on scaling.

The impact of ClearGrid’s approach is evident, as one UAE bank reported a doubling in borrower engagement and a 30% increase in recovery rates. By leveraging automation, certain clients have seen a complete digitization of early-stage debt resolution, with 95% of cases processed without human intervention, resulting in a customer satisfaction score of 4.8 out of 5. The improved borrower-lender relationship contributes to greater economic confidence and reduced financial stress.

Khalid Bin Bader Al Saud, Co-Founder & Chairman of ClearGrid KSA, remarked, “Financial systems must evolve with the digital world,” stressing the importance of a technology-first approach in debt resolution. As digital lending grows in MENA, the demand for efficient, technology-driven collections solutions is increasing, positioning ClearGrid as a leader in this transformation.

Raed Ventures’ Founding Partner Omar Majdouie stated that ClearGrid addresses a critical issue in the MENA debt collection landscape with its innovative model, which enhances operational efficiencies for lenders while nurturing positive borrower relationships. Similarly, Nuwa Capital’s Founding Partner Khaled Talhouni noted that ClearGrid is redefining debt resolution into a commercial opportunity, setting a new standard for the industry.

Looking forward, ClearGrid plans to expand its offerings to tackle broader challenges in the lending lifecycle. The company aims to develop advanced collections systems utilizing AI and machine learning, establish an enterprise platform for early risk detection, and explore new revenue opportunities through alternative risk assessments and debt counseling. This strategic roadmap positions ClearGrid as a foundational player for a more transparent and efficient financial system across MENA and beyond.