B2B payment platform Settle raises USD 2 mn in pre-seed round

Local and regional VCs take part in Settle’s seven-figure pre-seed round: Local B2B payment platform Settle Payments has raised USD 2 mn in a pre-seed funding round led by Abu Dhabi-based Shorooq Partners, according to a press release (pdf). Egypt’s El Sewedy Capital Holding and Acasia Ventures participated in the round, alongside Abu Dhabi’s Plus VC.

Settle? The fintech startup founded in 2023 is a B2B payments platform that aims to help businesses digitize and simplify their B2B payments, offering integration of companies’ enterprise resource planning software with existing bank accounts to automate payments and receivables and improve the transparency of companies’ financial processes, all while increasing efficiency and reducing operational errors.

Where’s the money going? The company plans to use the funding to establish itself within the global market and further develop the platform, with the focus on helping companies make smart decisions on the basis of real-time financial data. It also aims to invest in top local talent, improve user experience, and ramp up the company’s marketing efforts to get the attention of both SMEs and large enterprises, Shorooq Partners partner Tamer Azer told Enterprise.

B2B payment automation is a growth industry in Egypt: While B2C services have seen rapid digitization in the recent past, B2B markets have been slower to make the transition to the digital age. “We have watched the Egyptian market undergo a significant digital transformation in B2C services,” Settle co-founder Kamil Sayour said in the press release, adding that “I believe Settle has a major opportunity to bring the same transformation to B2B financial operations.”

Its backers think Settle is well positioned to take advantage of a gap in the market: “Settle’s innovative approach to automating B2B payments and treasury management addresses a significant gap in the market, particularly in Egypt, where many businesses still rely on outdated financial processes,” Azer said in comments to Enterprise. Fellow investor El Sewedy Capital agrees, with Group CEO Haytham Sabry stating that “we seek out technologies that address real-world challenges, and Settle is a perfect example of this.”

Regional expansion is in the cards long-term: While Settle is currently focused on solidifying its presence in the Egyptian market, the company is eyeing regional expansion in the future with its key targets in the GCC that include Saudi Arabia and the UAE, Azer told us. The company’s long-term goal is to be a regional leader for B2B payment automation, Azer added.