• ClearGrid raised USD 10M in funding to modernize debt collection in the Middle East using AI-driven automation. 
• Its AI-powered platform streamlines collections, categorizes borrowers, personalizes outreach, and automates its operations, including voice agents.
• The startup plans to scale tenfold, double its team, and expand into Saudi Arabia using its newly acquired funding.

ClearGrid

What happened? ClearGrid secured USD 10M in funding, specifically USD 3.5 million in pre-seed and USD 6.5 million in seed. This Dubai-based startup aims to modernize debt collection and recovery with artificial intelligence (AI).

Its investors include Beco Capital, Nuwa Capital, Raed Ventures and angel investors such as Anu Hariharan, Amjad Masad, Jason Gardner and Justin Kan.

Why does this matter? Debt has been often dealt with as somewhat of a taboo concept in emerging markets such as the Middle East. However, consumer lending is on the rise. According to Forbes, the Middle East consumer lending market is worth USD 500 billion. Furthermore, this continues to expand due to services such as buy-now-pay-later (BNPL).

However, debt collection methods are still stuck in the past despite the growing need for efficiency. The CEO and founder of ClearGrid Mohammad Al Zaben saw that there was a gap in this very big market as he realized the issues with consumer collections. 

“When we spoke with collectors, it was clear the industry was stuck in the past — some agencies still used pen and paper, and the most advanced relied on basic CRMs. said Mohammed Al Zaben.

He saw that both lenders and borrowers have terrible experiences in the process. For instance, borrowers often were subjected to scare tactics and harassment from lenders which would leave lenders vulnerable to regulatory scrutiny. This is because regulators are starting to prioritize consumer protection.

“Debt collection was a people-driven business where collectors relied on scare tactics and harassment. Borrowers had a terrible experience, and Saudi and UAE regulators were beginning to prioritize consumer protection.” 

Mohammed Al Zaben, CEO and Founder of ClearGrid

Debt Collection

How exactly is ClearGrid solving this? Founded by Al Zaben, Khalid Bin Bader Al Saud and Mohammed AlKhalili, it is a software and AI designed to streamline debt recovery and collaborate with existing vendors.

ClearGrid acts as the go-between for lenders and borrowers, using AI to automate the collections process. The idea is for lenders to integrate via ClearGrid’s platform of API in order to send borrower accounts for processing.

Its AI scores items like repayment likelihood, helps predict customer behavior and personalizes outreach across communication channels. Furthermore, 95% of ClearGrid’s operations are fully automated including AI voice agents that handle hundreds of thousands of calls daily. However, for borrowers who prefer human interaction, the platform does facilitate direct conversation and feeds these insights back into the platform.

The platform categorizes borrowers based on their ability and willingness to pay then structured payments in smaller more manageable chunks, Furthermore, it aims to push them towards paying without coercion  

How do they profit? The startup takes a percentage fee on recovered amounts, viewing this model as profitable as it reports 30% growth monthly. 

What will they do with the funding? With the newly acquired capital, the startup aims to increase its revenue and accounts managed tenfold. It also plans to double its team in the next fiscal quarter.Additionally, it also aims to expand into Saudi Arabia.