Saudi Arabia-based software startup Rekaz has raised US$5 million in seed funding to enhance its platform for service businesses.

The funding round was led by COTU Ventures, with contributions from Impact46, Shorooq Partners, Numrah Capital, and several angel investors.

The newly acquired funds will be used for product development, AI integration, and expanding operations within the Gulf Cooperation Council (GCC) region.

Founded in 2017 by Abdulrahman Alomran and Abdulaziz Alkharashi, Rekaz offers an all-in-one software solution for small and medium-sized service businesses.

Its platform serves industries including gyms, salons, clinics, and home service providers.

It features tools for scheduling, payments, subscriptions, and customer management.

Rekaz reports that over 7,000 businesses have used its platform, managing more than 1 million appointments and subscriptions.

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🔗 Source: Rekaz

🧠 Food for thought

1️⃣ GCC’s SaaS market presents massive growth opportunity for vertical-focused platforms

The UAE SaaS market alone was valued at $5.49 billion in 2022 and is projected to grow at a remarkable 27.93% CAGR, reaching $30.52 billion by 2029 1.

This growth trajectory reflects the region’s rapid digital transformation, with smartphone penetration exceeding 50% across a population of over 400 million people sharing similar cultures 2.

Rekaz’s focus on service-based businesses is strategically aligned with regional economic priorities, as service SMBs form a significant portion of the GCC economy.

The company joins a growing ecosystem of successful vertical SaaS providers in the region, including Grubtech (restaurants), Dukkantek (retail), and Kitopi (kitchen operations) 1, 3.

This vertical-specific approach aligns with successful SaaS models globally, where deep industry expertise often translates to higher customer retention and lifetime value compared to generic software solutions.

2️⃣ Regional SaaS companies are evolving from digitization tools to comprehensive business infrastructure

Rekaz’s positioning as “doing for service SMBs what Shopify did for e-commerce” reflects a broader trend of SaaS platforms evolving beyond simple digitization tools to become full operational infrastructure for businesses.

The region’s most successful SaaS players are similarly offering end-to-end solutions – Bayzat provides comprehensive HR and payroll management serving over 1,000 companies, while Beehive offers a complete peer-to-peer lending platform with regulatory approval for Sharia compliance 3.

This shift toward all-in-one platforms addresses a critical gap in the region where service businesses have traditionally operated through “scattered tools, spreadsheets, and manual work” as noted by Rekaz’s CEO.

The integration of AI capabilities – which Rekaz plans to enhance with its new funding – aligns with regional priorities, where 70% of executives see AI transformation as vital despite only 32% having implemented it so far 4.

3️⃣ Investment patterns indicate maturing SaaS ecosystem in Saudi Arabia and broader GCC

Rekaz’s $5 million seed round, led by COTU Ventures with participation from regional investors like Impact46 and Shorooq Partners, signals increasing investor confidence in GCC-based SaaS startups.

This represents significant progress in a region that has historically lacked a robust venture capital ecosystem, with traditional investors preferring safer investments rather than risk-taking on technology ventures 2.

The participation of multiple institutional investors rather than primarily angel funding indicates the growing sophistication of the regional investment landscape for technology companies.

Notably, Rekaz raised this substantial seed round after operating since 2017 and demonstrating clear market traction with 7,000+ businesses using its platform and over 1 million processed appointments/subscriptions.

This pattern of securing significant funding after establishing product-market fit differs from some Western markets where larger seed rounds might come earlier in a company’s lifecycle.

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