Madfu has raised USD 25.5 million in a pre-Series A funding round led by Afaq Capital with participation from angel investors.
The Saudi Arabia-based BNPL provider announced the round on 18 February 2026. With its operations starting in 2022 and founded by Abdullah Al-Ibrahim, Ahmed Al-Wusheel, and Anas Al-Shaqir, Madfu provides interest-free payment solutions enabling consumers to split purchases into up to six instalments without hidden fees. The company operates under a licence from the Saudi Central Bank.
Madfu's platform integrates directly with merchant systems, enabling digital checkout experiences while maintaining compliance with Islamic finance principles and regulatory standards. The service aims to scale affordability, boost conversion rates, and foster customer loyalty for consumers and merchants.
Capital supports merchant network expansion
The funding will support the expansion of Madfu's merchant network across Saudi Arabia, strengthening operational infrastructure and optimising the technology stack. The company plans to invest in product development to introduce Sharia-compliant financial solutions tailored to evolving consumer needs.
BNPL services in Saudi Arabia have experienced accelerated adoption driven by ecommerce growth and shifting payment preferences under Vision 2030 economic diversification initiatives. The Kingdom's fintech sector operates under Saudi Central Bank regulatory frameworks requiring licensing for consumer credit and payment services.
Islamic finance principles prohibit interest charges on loans, requiring BNPL providers to structure offerings around fee-based or profit-sharing models rather than interest-bearing credit. Sharia-compliant financial products must receive certification from Islamic scholars confirming adherence to religious law.
Regulatory framework and market dynamics
The Saudi Central Bank oversees consumer credit providers through licensing requirements addressing consumer protection, credit underwriting standards, and financial stability safeguards. BNPL providers must demonstrate adequate capital, risk management frameworks, and operational capabilities to receive authorisation.
Ecommerce penetration in Saudi Arabia increased following pandemic-driven digital adoption, with online retail representing a growing share of total consumer spending. BNPL services support higher average order values and reduced cart abandonment for merchants while providing payment flexibility for consumers.
Afaq Capital operates as an investment firm focusing on Saudi Arabian markets across multiple sectors. The firm's participation reflects institutional investor interest in fintech companies serving consumer finance segments in the Kingdom.
Madfu has not disclosed transaction volumes, merchant numbers, or customer base size following the funding round. The company plans to deploy capital throughout 2026, supporting growth initiatives.
