Spend management platform Alaan has recently secured a significant Series A funding round, with an investment of USD 48 million. This financing was led by Peak XV Partners and included contributions from the founders of 885 Capital, Y Combinator, 468 Capital, and Pioneer Fund. The round was oversubscribed and featured both primary and secondary funding. Additionally, regional operators such as the founders of Tabby, Careem, Pleo, KAM, Talabat, and Aspora were among the supporters.
How Will Alaan Utilize the New Capital?
Alaan plans to use this capital to expand its presence in Saudi Arabia and drive the next phase of growth, with a focus on AI-driven finance automation. The company noted that the spend management category has shown significant product-market fit in the MENA region and aims to continue its expansion across the area.
Representatives from Alaan emphasized that the funding will assist their efforts in deepening their market penetration in the Kingdom of Saudi Arabia (KSA) while strengthening their position in the United Arab Emirates (UAE). As part of their growth strategy, Alaan intends to develop a finance operations platform for businesses in the region. With existing AI agents performing tasks such as receipt matching, manual reconciliation, and VAT extraction, the company now aims to scale its product offerings to reduce the workload on finance teams and empower them with full control.
The Alaan spend management platform has already saved substantial manual work hours for finance teams. As part of their plans, the company is also focused on hiring new staff in sales, customer success, and compliance roles to support its operations in Saudi Arabia. Additionally, Alaan is exploring local partnerships to better serve the business ecosystem within the Kingdom.
Furthermore, in March 2024, Alaan partnered with Visa to utilize their payment network, VisaNet, alongside the company’s AI-driven spend management system. This collaboration aims to provide improved financial control and visibility to businesses across the region, aligning with the cashless society initiatives of the UAE and Saudi Arabian governments.
