Saudi BNPL startup Madfu has raised $25.5 million to expand its fintech footprint across the Kingdom, accelerating growth in digital payments and consumer finance under Vision 2030.
Saudi based buy now, pay later (BNPL) platform Madfu has raised USD 25.5 million in fresh funding as it moves to expand its fintech footprint across the Kingdom. The funding round highlights sustained investor confidence in Saudi Arabia’s rapidly evolving fintech sector, which has seen accelerated growth in digital payments and alternative lending models in recent years.
Madfu operates within the BNPL segment, enabling consumers to split purchases into installment payments while helping merchants improve conversion rates and average basket sizes. The model has gained traction across the Gulf, particularly as e-commerce penetration continues to rise. According to data from Statista, Saudi Arabia’s e-commerce market has experienced steady year on year growth, reinforcing demand for embedded finance and flexible payment solutions.
Saudi Arabia’s fintech ecosystem has expanded significantly since the launch of Vision 2030 reforms, supported by regulatory initiatives from the Saudi Central Bank (SAMA) aimed at fostering innovation in payments, digital banking, and consumer finance. The Kingdom has publicly outlined its objective of increasing non cash transactions as a percentage of total payments, a target highlighted in national transformation strategies published through Vision 2030.
The $25.5 million raise positions Madfu to scale its merchant network, invest in credit risk analytics, and deepen integrations with local payment infrastructure. BNPL providers typically rely on proprietary underwriting systems and real time transaction monitoring to manage default risk while expanding transaction volumes, a model that has attracted significant venture capital globally, as detailed in industry analysis by CB Insights.
Across the Middle East, BNPL platforms have secured substantial funding over the past several years as investors back embedded finance models that integrate directly into online and offline checkout experiences. While regulatory oversight of BNPL has increased in some international markets, growth continues in regions where credit penetration remains comparatively low and digital payment adoption is accelerating.
With USD 25.5 million in fresh capital, Madfu is positioned to strengthen its competitive standing within Saudi Arabia’s fintech landscape, where both domestic and regional players are expanding aggressively. The funding reflects broader momentum in the Kingdom’s financial technology sector, where startups are increasingly moving beyond early-stage validation into structured growth and scale.
