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BENGALURU: UAE-based spend management platform Alaan has raised $48 million in a Series A round led by Peak XV Partners, marking one of the largest early-stage funding deals in the Middle East's fintech sector. The round saw participation from 885 Capital founders Sudeep Ramnani and Jai Mahtani, Y Combinator, 468 Capital, and Pioneer Fund. The funding, which was oversubscribed, included both primary and secondary components. It also drew backing from several prominent regional and global operators, including Tabby founder Hosam Arab, Careem founder Mudassir Sheikha, Pleo founder Jeppe Rindom, Astra Tech founder Abdallah Abu-Sheikh, and Talabat CPO Yi Wei Ang.

Alaan said it will use the capital to deepen its presence in Saudi Arabia and build out AI-driven finance automation tools. "The category has demonstrated strong product-market fit in MENA, and Alaan stands out as the category leader, demonstrated by their impressive growth trajectory," GV Ravishankar, managing director at Peak XV Partners, said.

Founded in 2022 by former McKinsey consultants Parthi Duraisamy and Karun Kurien, Alaan provides corporate cards and automated expense management solutions for businesses.

The company has processed over 2.5 million transactions and serves more than 1,500 finance teams, including those at G42, Careem, Tabby, Lulu Group, and Rivoli. Alaan, which entered Saudi Arabia earlier this year, has doubled its transaction volumes month-on-month for six consecutive months, according to the company.

"This funding helps us go faster and deeper in KSA while helping us strengthen our roots in the UAE," said Duraisamy, adding that Alaan plans to develop a full finance operations platform for businesses in the region.

The company claims its platform has saved finance teams over 1.5 million hours of manual work. With the new funding, it plans to ramp up hiring in Saudi Arabia across sales, customer success, and compliance.