BNPL Platform Madfu Raises $25.5M Pre-Series A to Expand in KSA

At checkouts across Saudi Arabia, instalment options are moving into the mainstream as shoppers look for flexibility. Saudi-based fintech startup Madfu has raised $25.5 million in a Pre-Series A round to expand operations, grow its merchant network, and strengthen technology infrastructure nationwide. The round included Afaq Capital and a group of angel investors.

Founded in 2022 by Abdullah Alibrahim, Ahmed Alwusheel, and Anas Alshuqair, Madfu operates a buy now, pay later (BNPL) platform that lets customers split purchases into up to six instalments with no interest or hidden fees. The company is licensed by the Saudi Central Bank to provide BNPL services to individuals and businesses, with a focus on transparent pricing and alignment with Islamic finance principles. The platform is designed to ease short-term outlays for consumers and help merchants improve conversion rates and lift average basket size.

Madfu plans to use the new capital to scale coverage across the Kingdom, onboard more partners across retail, e-commerce, and services, and reinforce its platform to support higher transaction volumes. It also plans to introduce new financing products tailored to evolving customer needs, while keeping the focus on compliant, flexible solutions that support responsible spending.

The funding comes as BNPL adoption accelerates in Saudi Arabia, with younger and digital-first shoppers increasingly opting for instalments at checkout. The trajectory aligns with Vision 2030 priorities to expand fintech, promote cashless transactions, and deepen financial inclusion across the economy.