In a region where debt collection often relies on harassment and outdated tactics, Dubai-based startup ClearGrid is betting that AI can recover more money while treating borrowers with dignity. The company announced today it has raised $10 million across pre-seed and seed rounds to modernize debt collection across the Middle East, where consumer lending is booming but collection practices remain stuck in the past.
Key Points:
- ClearGrid's AI platform has helped clients increase recovery rates by 30-50% while cutting collection costs in half
- Founded in 2023, the company has already signed 10 major enterprise clients and achieved profitability in the UAE
- The technology automates 95% of collection processes, handling hundreds of thousands of calls daily with AI voice agents
The founders of ClearGrid stumbled into the debt collection space almost by accident. After selling his previous startup Munch to Careem in 2022, CEO Mohammad Al Zaben took time off but found himself reflecting on one of his biggest business challenges: collecting payments from corporate customers.
"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," Al Zaben aid. "Debt collection was a people-driven business where collectors relied on scare tactics and harassment."
This realization came precisely as consumer lending was exploding across the region. Buy now, pay later services from companies like Tabby and Tamara were handling billions in sales, while unsecured lending was growing rapidly throughout the Middle East. At the same time, regulators in Saudi Arabia and the UAE were increasing consumer protections, putting pressure on traditional collection tactics.
Al Zaben, along with co-founders Khalid Bin Bader Al Saud and Mohammad Al-Khalili, saw an opportunity despite having no direct experience in collections. They launched ClearGrid in May 2023, creating an AI-powered platform that sits between lenders and borrowers to automate the collection process.
The technology works by integrating with lenders' systems, allowing them to send borrower accounts to ClearGrid for processing. AI models then score repayment likelihood, predict customer behavior, and personalize outreach across different communication channels. The company claims 95% of operations are fully automated, including AI voice agents handling hundreds of thousands of calls daily.
"We're building purpose-built tools and finding ways to make lenders better at what they do while also creating an opportunity for consumers to get out of debt," said Al Zaben.
Rather than relying on intimidation, the platform categorizes borrowers based on their ability and willingness to pay, then structures repayments into smaller, manageable amounts. This more humane approach seems to be working—the company says borrowers interact with its platform 60% more than they do with traditional collection agencies.
"Ironically, our use of AI enables us to take a much more human approach to debt collection, with each customer treated as an individual," Al Zaben told Forbes. "We can be an ally to help people get out of debt."
The results have impressed early clients. An unnamed major UAE bank reportedly increased recovery rates by 30% while cutting collection costs in half. A leading buy now, pay later provider doubled recoveries by automating early-stage debt resolution, achieving an outstanding 4.8/5 customer satisfaction score in the process.
ClearGrid makes money by charging a percentage fee on recovered amounts. The startup says its revenues are growing 30% month-on-month in the UAE, where it's already profitable, though the company remains focused on scaling rather than profitability at this stage.
The funding rounds were co-led by MENA-focused venture capital firms including Raed Ventures, Beco Capital, and Nuwa Capital. Additional investors include Aramco's Waed Ventures, KBW Ventures, and several prominent angels like Anu Hariharan (Avra founder), Amjad Masad (Replit CEO), and Justin Kan (Twitch co-founder).
"ClearGrid is tackling a critical pain point in the MENA debt collection industry with a truly innovative approach," said Omar Majdouie, Founding Partner at Raed Ventures. "Their AI-powered platform not only drives significant operational efficiencies for lenders but also fosters a more positive and sustainable relationship with borrowers."
With the new funding, ClearGrid plans to expand its engineering team and enter the Saudi Arabian market this year. The company aims to "10x" its revenue and accounts managed in 2025, currently engaging with over 130,000 borrower accounts monthly.
Co-founder and Chairman of ClearGrid KSA, Khalid Bin Bader Al Saud, has bigger ambitions beyond the current product. "This is just the first step in building the infrastructure for the future of debt resolution," he said.