While working at McKinsey’s Dubai office, Parthi Duraisamy noticed a recurring issue. The company’s American Express cards were not widely accepted in the region.
As a result, he often paid work expenses out of pocket. Each weekend, he spent hours uploading receipts and reconciling accounts.
This manual process became a persistent burden. Rather than accept the status quo, Duraisamy decided to solve the problem.
Together with fellow McKinsey alumnus Karun Kurien, he founded Alaan, a fintech platform with plans to modernize corporate spending in the Middle East.
To realize its dreams, Alaan has secured $48 million in a series A funding round.
Investors
Peak XV Partners (formerly Sequoia Capital India & SEA) led the round. Other participants included Y Combinator, 468 Capital, 885 Capital founders, and Pioneer Fund.
Notably, prominent regional entrepreneurs also made significant contributions. These include Hosam Arab (Tabby), Mudassir Sheikha (Careem), and Khalid Al Ameri, a widely followed YouTuber.
This investment ranks among the largest Series A rounds in MENA fintech.
Regulations
Alaan raised its seed round, $2.5 million, in 2021. However, it faced significant delays. Regulatory requirements and the need for local banking partnerships slowed its UAE launch.
The situation was similar in Saudi Arabia. Alaan secured regulatory approval only after years of engagement with the country’s central bank.
The platform officially launched in Saudi Arabia in January 2025. According to Duraisamy, “The biggest challenge we faced, both in the UAE and Saudi Arabia, was simply going live.”
Despite these delays, the company stayed committed. It worked through the required compliance steps and eventually entered both markets.
AI Automation
In 2023, Alaan introduced AI into its platform. The initial rollout featured a chatbot that provided users with a conversational way to manage expenses.
However, adoption remained low. The team quickly realized users preferred invisible support over interactive tools.
Today, Alaan uses AI to automate essential financial tasks. These include receipt matching, expense reconciliation, and VAT data extraction.
These features provide tangible value. In a region with complex VAT systems, automation helps businesses comply with tax laws while saving time.
So far, Alaan estimates it has saved finance teams over 1.5 million hours of manual work.
Measured Growth
Since its launch in 2022, Alaan has served more than 1,500 businesses. Its clients include major companies like G42, Careem, Tabby, and Lulu Group.
The platform has processed over 2.5 million transactions to date, and what sets Alaan apart is its financial discipline.
The company generated $10 million in revenue by spending just $5 million. It also operates profitably, a rare achievement in the regional fintech space.
Duraisamy credits Y Combinator and his mentors for shaping this approach. Rather than chasing high transaction volumes, Alaan focused on sustainable, capital-efficient growth.
Expansion
Alaan’s entry into Saudi Arabia has shown strong early results. Over the past six months, transaction volume has doubled each month.
This trend highlights the demand for digital spend management tools in the region. With fresh funding, Alaan plans to scale operations.
It will expand its sales and compliance teams, enhance customer success capabilities, and increase investments in AI automation.
The company’s leadership believes this growth will strengthen its position as the regional category leader.
Strategy
Some have compared Alaan’s rise to that of Ramp, a U.S.-based fintech with rapid valuation gains. But Duraisamy sees key differences.
“When you talk to investors, what really matters for a company at our stage is the fundamentals,” he explained. “We are not in a market where size is the main advantage.”
Instead, success in the MENA region depends on localized strategy, operational efficiency, and trust.
