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Saudi-based edfinancing firm JeelPay has raised a $6.6 million Pre-Series A funding round. According to sources close to the deal, the new investment is to be used as a springboard to push the edfinancing platform further to become a major part of payment facilitation for schools and enhance accessibility to quality education through innovative financial solutions.
About the Company
Founded in 2022 by Badr Al Dughesh, Faisal Al Hussain, and Mohammed Al Khodair, JeelPay has positioned itself as an early mover in the educational fintech sector. The flagship product offered by the company is a “Learn Now, Pay Later” model.
Under this, parents pay the tuition fees every month, and the educational institution receives the total amount at once. This model will take the burden off families in terms of financing and ensure cash flow for schools, filling an important gap in the traditional education payment ecosystem.
Read also: Klickl, a UAE-based Web3 banking startup $25M funding
Funding Round
Pre-Series A funding is led by JOA Capital and supplemented by Aljazira Capital and a group of angel investors. This $6.6 million funding will be put towards several strategic initiatives:
- Upgradation of Digital Solutions: JeelPay will invest in the development of advanced digital platforms to enhance user experience, security, and operational efficiency. This includes upgrading their payment processing systems and introducing new features tailored to the needs of both parents and educational institutions.
- Market Expansion: The company will expand its market by partnering with a broader range of educational institutions in Saudi Arabia and, potentially, the Middle East. This expansion will make their innovative financing solutions accessible to a broader demographic, thereby promoting financial inclusion.
- Talent Acquisition: Some of the money will be spent on attracting and retaining specialized talent in technology, finance, and operations to drive the company’s growth and innovation agenda.
Strategic Significance of the Investment
This round of funding is a badge of honor for JeelPay’s innovative approach but also serves broader economic and social purposes:
This is in line with Saudi Vision 2030, which focuses on improving the quality of education, enhancing financial inclusion, and achieving economic diversification through technological innovation. In this regard, JeelPay contributes directly to the national goals by making education financing more accessible.
Investments by Leading Investment Houses: With investments from reputable firms such as JOA Capital and Aljazira Capital, it proves that the JeelPay business model is not only viable but can also produce immense impact for both fintech and education domains.
Yousef Alyousefi, Chief Executive Officer at JOA Capital, emphasized strategic reasons for investments in digital channels of advanced solutions in education and finance, claiming that JeelPay is already prepared to align with large organizations in order to go global.
The educational sector in Saudi Arabia is currently in a transformation phase, where there is increased demand for quality education and at the same time, a corresponding need for flexible financing solutions.
Families often face challenges with traditional payment methods, creating a growing market for fintech solutions that are flexible and easy to pay for. JeelPay’s innovative approach addresses this demand by providing a seamless payment experience that benefits both parents and educational institutions.
Read also: Bengaluru-based fintech startup QuiD Cash has raised $4.5 million
Future Outlook
With the injection of new capital, JeelPay is now well-positioned to:
- Develop and launch new financial products tailored to the needs of the education sector, including savings plans, scholarships, and other value-added services.
- Strengthen the technological infrastructure with the latest technologies, such as artificial intelligence and machine learning, to improve their platform’s capabilities, including personalized financial solutions and predictive analytics.
- Extend geographical reach: Investigate the potential to expand services beyond Saudi Arabia to other markets in the Middle East and North Africa (MENA) region where similar challenges in educational financing exist.
Summary
JeelPay has achieved a new milestone in its journey to transform educational financing in Saudi Arabia and beyond with its successful Pre-Series A funding round worth $6.6 million. With this investment, JeelPay will be able to further develop its digital solutions, expand its market presence, and contribute to the broader objectives of financial inclusion and educational accessibility envisioned in Saudi Vision 2030.
