ClearGrid Secures $10M to Modernize Debt Recovery in MENA

Addressing outdated practices in a growing market

As consumer lending continues to expand across the Middle East, concerns around debt recovery are becoming more urgent. With a lending market already valued at over $500 billion, the rise of credit services like buy-now-pay-later (BNPL) has increased the pressure on lenders to collect overdue payments more effectively and ethically. In response, ClearGrid, a Dubai-based technology start-up, has launched a digital solution designed to improve how lenders manage non-performing loans.

Founded by Mohammad Al Zaben, Mohammed AlKhalili, and Khalid Bin Bader Al Saud, ClearGrid offers a data-driven platform that aims to reduce reliance on traditional, often aggressive, collection methods. “In our part of the world, debt was traditionally seen as a negative thing, largely for religious reasons, but a new generation of consumers has very different views about borrowing,” said Al Zaben, who also serves as CEO. However, he added that the region’s debt collection systems have not evolved to meet the changing landscape.

AI-based platform personalizes repayment approaches

ClearGrid’s platform uses artificial intelligence and machine learning to assess borrower situations individually and tailor outreach strategies. When a borrower falls behind, lenders can upload their details to the system. The platform then gathers relevant data to recommend the most suitable recovery path. Using automated yet adaptive messaging, ClearGrid engages borrowers with customized repayment offers.

These options are adjusted based on lender preferences and borrower conditions. For example, someone who has lost employment might be offered a different repayment schedule compared to someone facing other challenges. According to the company, the tool helps lenders recover capital more efficiently while offering borrowers a more constructive way out of debt.

Strong early traction draws investor backing

Since launching in January 2024, ClearGrid has partnered with several fintech firms and ten enterprise-level lenders. It reports that users have seen a 38% average increase in collection rates, with debt resolution times cut in half compared to conventional methods. Al Zaben also highlighted a notable improvement in borrower satisfaction, noting, "Ironically, our use of AI enables us to take a much more human approach to debt collection, with each customer treated as an individual."

The $10 million funding round includes support from Raed Ventures and Beco Capital in the pre-seed stage, and a seed round co-led by Nuwa Capital and Raed Ventures. Additional investors include Aramco's Waed Ventures, KBW Ventures, Sharaka, 9yards Capital, Protagonist, BYLD, Eirad Holdings, Endeavor, and Wamda, along with various angel investors.

With the fresh capital, ClearGrid plans to double its engineering team and pursue regional expansion, with a particular focus on entering Saudi Arabia. Stakeholders say the platform is not only modernizing an outdated sector but also offering a scalable and more sustainable approach to debt recovery.