Alaan raises $48 million to scale AI-powered spend management across the MENA region

Alaan, the AI-powered spend management platform based in the UAE, has raised $48 million in Series A funding, making it one of the largest fintech rounds in the MENA region.

The round was led by Peak XV Partners (formerly Sequoia Capital India & SEA), with participation from Y Combinator, 468 Capital, Pioneer Fund, and founders of top MENA startups like Tabby and Careem. This funding positions Alaan as a category leader in the growing field of AI-driven financial automation for modern finance teams.

Founded by former McKinsey consultants Parthi Duraisamy and Karun Kurien, Alaan was created to fix the inefficiencies they experienced firsthand with traditional corporate cards and manual expense reporting. Since launching in 2022, Alaan has grown rapidly, processing over 2.5 million transactions for more than 1,500 finance teams, including major clients like G42, Careem, and Lulu Group.

Alaan’s core offering is an AI-powered spend management platform that automates tedious finance tasks like receipt matching, expense reconciliation, and VAT extraction. The company claims its technology has already saved customers over 1.5 million hours of manual work.

In 2023, Alaan was among the first in the region to integrate OpenAI into its workflows. After early experimentation with chat-based features, the team pivoted to focus on invisible AI — automating back-end processes that directly improve efficiency without disrupting workflows.

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The result is a product built for real-world finance teams in MENA, where complex tax regulations and limited digital infrastructure often slow down operations.

Unlike many fintech startups chasing scale at all costs, Alaan has emphasized capital efficiency from day one. The company reports generating $10 million in revenue from just $5 million in spend, and it has already achieved profitability.

“What matters to investors is our fundamentals — strong revenue, efficient growth, and a focused go-to-market strategy,” said CEO Parthi Duraisamy.

This financial discipline was a key factor in securing the $48 million round.

Alaan plans to use the Series A funding to accelerate its growth across the region, especially in Saudi Arabia, where it recently launched after overcoming regulatory hurdles. The company will also invest in hiring for sales, customer success, compliance, and continued AI product development.

With this raise, Alaan joins the ranks of regional fintech leaders like Tamara, which previously raised $110 million. As finance teams across MENA continue to modernize, Alaan is positioning itself as the platform of choice for companies seeking intelligent, compliant, and automated financial operations.