• ClearGrid secures $10M to improve debt collection in the MENA region using AI.
  • The startup leverages machine learning for personalized, compliant debt recovery strategies.
  • With growing regulatory scrutiny, ClearGrid aims to modernize financial processes and enhance collection efficiency.

ClearGrid is helping banks, fintechs and lenders recover more debt through their modern debt collection with the assistance of AI.

The Dubai-based AI-powered fintech startup has emerged from stealth with a $10 million funding round ($3.5 million pre-seed and $6.5 million seed) to tackle debt collection challenges in the Middle East and North Africa (MENA) region. The startup helps banks, fintechs, and lenders recover more debt without resorting to customer harassment.

After selling his startup Munch:On to Careem in 2022 and reflecting on the challenge of collecting payments from corporate customers, Al Zaben, Co-founder and CEO of ClearGrid, delved into receivables management, ultimately recognizing an even greater issue in consumer debt collection.

“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,” Mohammad Al Zaben said.
“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.”

At the same time, consumer lending surged as BNPL (Buy Now, Pay Later) giants like Tabby and Tamara handled billions in sales, driving unsecured lending to new heights in the Middle East.

Sensing an opportunity despite their lack of experience in the collections market, Al Zaben and his co-founders, Khalid Bin Bader Al Saud and Mohammad Al-Khalili, launched ClearGrid.

They developed AI-powered software to streamline recovery and collaborate with existing vendors.

“At a time when lending is booming, regulations are tightening, and AI is reshaping industries, we see this as an opportunity to help lenders recover debt while building trust with borrowers,” the CEO added.

ClearGrid acts as a bridge between lenders and borrowers, leveraging AI to automate collections. Lenders connect through its platform or API, submitting borrower accounts for processing.

According to the company, its AI models assess repayment likelihood, anticipate customer behavior, and tailor outreach across various communication channels.

Since launching in 2024, ClearGrid has managed hundreds of millions in debt portfolios and partnered with 10 major fintechs and banks in the UAE.

The company claims its AI-driven approach has boosted recovery rates by up to 50% while cutting collection costs, with a leading BNPL provider doubling recoveries through automated early-stage debt resolution.

ClearGrid generates revenue by taking a percentage of recovered amounts and is already profitable in the UAE, where its monthly revenue is growing by 30%.

Edited by Harshajit Sarmah