A Dubai-based startup, ClearGrid, is stepping in with an AI-driven solution designed to fix the system. The company has just emerged from stealth mode, armed with $10 million in total funding — $3.5 million in pre-seed and $6.5 million in seed capital. ClearGrid’s goal is simple but ambitious: help banks, fintechs, and lenders recover more debt while improving borrower experience.
Debt collection remains a messy, outdated process in many emerging markets, often leaving borrowers frustrated and lenders struggling with mounting costs. In the Middle East and North Africa (MENA), rising consumer lending and stricter regulations are exposing the cracks in traditional collection methods.
Launched in May 2023, ClearGrid is off to a strong start. Co-founder and CEO Mohammad Al Zaben says this early backing gives the startup an edge in tackling what he describes as a massive market opportunity.
How ClearGrid Is Redefining Debt Collection with AI
Al Zaben’s journey into the debt collection world started after selling his previous company, Munch:On, to Careem in 2022. Reflecting on past challenges, he recalled how chasing unpaid corporate invoices became a major pain point. That experience sparked his curiosity about the larger debt recovery industry.
Digging deeper, Al Zaben discovered how outdated the sector was. Many agencies still relied on paper records, while others barely upgraded from basic CRM systems. Even worse, collection efforts often leaned on harassment and intimidation — a practice regulators in Saudi Arabia and the UAE were starting to crack down on.
Meanwhile, the lending market was exploding. Buy now, pay later (BNPL) giants like Tabby and Tamara were driving billions in sales, while unsecured consumer lending hit record levels across the region.
Sensing a gap, Al Zaben teamed up with Khalid Bin Bader Al Saud and Mohammed AlKhalili to launch ClearGrid. Their mission? To build AI-powered software that helps lenders recover debts efficiently — without alienating borrowers or breaking new regulations.
“This is a once-in-a-generation opportunity to modernize debt recovery,” said Al Zaben. “Lending is booming, AI is transforming industries, and regulators are prioritizing consumer protection. We want to be the platform that brings it all together.”
Building Automated Debt Recovery for the Future
At its core, ClearGrid uses artificial intelligence to automate nearly the entire collections process. Lenders connect to ClearGrid’s platform or API and hand over borrower accounts for processing.
The AI engine scores borrowers based on their likelihood to repay, predicts behaviors, and crafts personalized outreach strategies across multiple channels. Whether it’s an email, text, or AI-driven voice call, the platform chooses the most effective communication for each case.
An impressive 95% of ClearGrid’s operations run automatically. The startup’s AI voice agents handle hundreds of thousands of calls daily. For borrowers preferring a human touch, the platform facilitates direct conversations — gathering insights that continuously improve its models.
ClearGrid doesn’t just chase debts. It categorizes borrowers based on willingness and ability to pay, then breaks repayments into smaller, manageable installments. The goal is to help people get out of debt — not push them further in. According to the company, this approach cuts collection costs by up to 50%.
“We’re giving lenders smarter tools while also offering consumers a better way to manage repayments,” Al Zaben explained.
Strong Market Traction and Eye on Saudi Expansion
Since launching operations in early 2024, ClearGrid has already processed hundreds of millions of dollars in debt portfolios. Ten leading UAE banks and fintech firms have signed on, including a major bank that reportedly boosted recovery rates by 30% and halved collection costs.
ClearGrid also claims its BNPL partners have doubled their early-stage recovery rates using the platform. Across the board, ClearGrid resolves debts twice as fast as traditional agencies, improves resolution rates by up to 50%, and increases borrower engagement by 60%.
The company operates on a success-fee model, earning a percentage of recovered amounts. Currently, ClearGrid is profitable in the UAE and growing its revenue 30% month-over-month.
Next up, ClearGrid is setting its sights on Saudi Arabia — one of the region’s largest lending markets. With over 130,000 borrower accounts processed monthly, the startup aims to 10x its revenue and accounts managed in 2024.
Al Zaben also plans to double the engineering team in the coming months to build what he calls the “definitive credit orchestration infrastructure for the region.”
Impressive Backing from Top VCs and Angels
ClearGrid’s rapid progress is backed by prominent investors focused on MENA and global fintech. Beco Capital, Nuwa Capital, and Raed Ventures participated in the funding round, along with influential angels like Anu Hariharan (founder of Avra), Amjad Masad (Replit CEO), Jason Gardner (Marqeta CEO), and Twitch co-founder Justin Kan.
With fresh capital in hand, ClearGrid is poised to lead the shift toward fairer, more efficient debt collection in the Middle East — proving that recovering money doesn’t have to come at the cost of borrower trust.
