Madfu Raises $25.5M in Pre-Series A Round Led by Afaq Capital
•February 16, 2026
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Participants
Why It Matters
The financing accelerates Madfu’s ability to capture a fast‑growing, regulated BNPL market in Saudi Arabia, reinforcing Vision 2030’s digital‑economy goals. Its Sharia‑compliant model differentiates it from global rivals, attracting merchants seeking compliant payment options.
Key Takeaways
- •Raised $25.5M pre‑Series A led by Afaq Capital
- •Offers Sharia‑compliant BNPL up to six interest‑free installments
- •Funding targets merchant network expansion across Saudi Arabia
- •Plans new Islamic finance products and tech upgrades
- •Operates under SAMA licence, ensuring regulatory compliance
Pulse Analysis
Saudi Arabia’s fintech landscape is booming under Vision 2030, with digital payments and e‑commerce adoption outpacing regional peers. Regulatory support from the Saudi Central Bank has created a fertile environment for innovative credit products, and Buy‑Now‑Pay‑Later services are emerging as a key growth driver. Investors are keen to back platforms that can scale quickly while adhering to local compliance standards, making Madfu’s recent funding round a bellwether for the sector’s momentum.
Madfu differentiates itself by embedding Sharia principles into its BNPL offering, allowing consumers to split purchases into up to six interest‑free installments without hidden fees. This compliance not only satisfies religious considerations but also aligns with Saudi regulators’ emphasis on transparent, consumer‑friendly finance. By integrating directly with merchant point‑of‑sale systems, Madfu improves checkout conversion rates and fosters loyalty, positioning the startup as a preferred partner for retailers seeking to broaden their payment options while maintaining Islamic finance integrity.
The $25.5 million injection will enable Madfu to accelerate merchant acquisition across the Kingdom, upgrade its technology stack, and launch new Islamic‑finance products tailored to evolving consumer needs. As competition intensifies, the capital will help the firm cement its market share and potentially expand regionally. Stakeholders should watch how Madfu leverages regulatory backing and cultural alignment to shape the future of flexible, compliant digital payments in the Gulf.
Deal Summary
Saudi fintech startup Madfu announced a $25.5 million (SAR 95 million) pre‑Series A funding round led by Afaq Capital, with participation from angel investors. The capital will be used to expand its merchant network, upgrade technology, and develop new Sharia‑compliant BNPL products across Saudi Arabia. The round highlights growing interest in Islamic‑compliant digital payments under Vision 2030.
Article
Source: Wamda
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Saudi Arabia-based fintech startup Madfu has raised $25.5 million (SAR 95 million) in a pre-Series A round led by Afaq Capital, with participation from angel investors.
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Founded in 2022 by Abdullah Al-Ibrahim, Ahmed Al-Wusheel, and Anas Al-Shaqir, Madfu provides Sharia-compliant BNPL solutions that allow consumers to split purchases into up to six interest-free instalments.
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The company will deploy the funding to expand its merchant network across Saudi Arabia, enhance its technology infrastructure, and develop new Islamic finance-aligned products, as it strengthens its position within the Kingdom’s rapidly growing digital payments ecosystem.
Press release:
Madfu, a Saudi-based fintech startup specialising in Buy Now, Pay Later (BNPL) solutions, has raised SAR 95 million ($25.5 million) in a Pre-Series A funding round led by Afaq Capital, with participation from a group of angel investors.
Founded in 2022 by Abdullah Al-Ibrahim, Ahmed Al-Wusheel, and Anas Al-Shaqir, Madfu provides transparent, interest-free payment solutions that enable consumers to split purchases into up to six instalments without hidden fees. The company operates under a licence from the Saudi Central Bank (SAMA), reinforcing its position within Saudi Arabia’s regulated fintech ecosystem.
Madfu's platform enhances affordability, boosts conversion rates, and fosters customer loyalty for both consumers and merchants. By integrating directly with merchant systems, the company enables seamless digital checkout experiences while maintaining compliance with Islamic finance principles and regulatory standards.
The newly secured capital will support Madfu’s next phase of growth, including expanding its merchant network across Saudi Arabia, strengthening operational infrastructure, and enhancing its technology stack. The company also plans to invest in product development to introduce new Sharia-compliant financial solutions tailored to evolving consumer needs.
As Saudi Arabia’s fintech sector continues to expand under Vision 2030, BNPL services have seen accelerated adoption driven by e-commerce growth and shifting payment preferences. With regulatory backing, fresh capital, and a growing partner ecosystem, Madfu aims to play a central role in advancing flexible, compliant digital payment solutions across the Kingdom.
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