Saudi BNPL Startup Madfu Secures $25.5 Million Pre-Series A Funding

Saudi fintech startup Madfu, specializing in Shariah-compliant Buy Now, Pay Later (BNPL) solutions, has raised $25.5 million (SAR 95 million) in a Pre-Series A funding round led by Afaaq Capital, with participation from undisclosed angel investors. The round marks a significant milestone in strengthening the company’s position within Saudi Arabia’s rapidly growing digital payments market.

Founded in 2022 by Abdullah Al-Ibrahim, Ahmed Al-Wusheil, and Anas Al-Shaqeer, Madfu offers transparent, interest-free payment solutions that allow consumers to split purchases into multiple installments with no hidden fees. The company is officially licensed by the Saudi Central Bank (SAMA), placing it firmly within the Kingdom’s regulated fintech ecosystem.

Madfu enables consumers to divide payments into up to six installments, easing purchasing decisions and boosting customer loyalty for merchants. Its model also creates sustainable revenue opportunities for merchants while preserving consumers’ purchasing power, contributing to a more efficient and integrated digital commerce environment.

The newly raised capital will support Madfu’s strategic roadmap for 2025 and beyond, including expanding its operations across Saudi Arabia, strengthening its merchant network, and investing in product development. This includes launching new financial products aligned with Islamic finance principles to meet rising demand for flexible, transparent, and Shariah-compliant payment options.

The management team emphasized that the funding will also facilitate partnerships across multiple sectors, enabling the company to serve a broader customer base with flexible financing solutions. Additionally, Madfu plans to enhance its technological infrastructure to improve user experience, increase transaction efficiency, and ensure seamless payment flows across its platform.

This funding round comes amid strong growth in Saudi Arabia’s fintech sector, supported by robust regulation, accelerating digital adoption, and ambitious national initiatives under Vision 2030. BNPL services in particular are playing a key role in accelerating digital transformation, empowering consumers with flexible payment options, and helping merchants expand their customer base.