Saudi Arabia-based software-as-a-service (SaaS) platform Qoyod, has secured $2.1 million in a Series A round led by Merak Capital, with participation from other investors.

Founded by Abdullah Aldayel in 2016, Qoyod provides startups and SMEs with a cloud-based accounting software to help them manage their day-to-day accounting and finance operations as well as access to real-time reporting and analytics tools. It also offers business owners other complementary financial products and services. 

The startup is currently working on boosting its product offering as well as expanding its regional footprint.

"Despite its obvious challenges, 2020 has been an amazing year for us here at Qoyod, with significant growth in our customer base and topline for the year. Nonetheless, the Saudi market is sizable, and we have yet to scratch the surface. We are thrilled to end the year with key new partners on board and look forward to working with Merak Capital, who will be adding tremendous value by way of their fintech expertise,” said Abdullah Aldayel, founder and CEO of Qoyod. 

Globally, businesses are spending $6.4 billion on accounting software, which is expected to reach $10.5 billion by the end of 2027, with a compound annual growth rate (CAGR) of 7.4 per cent. In Saudi Arabia, the direct market exceeds $500 million and is growing more than 13 per cent annually, while the adjacent market opportunity exceeds $2 billion, said Abdullah Altamami, founding partner and CEO of Merak Capital. 

“Yet, we don't have a ubiquitous SaaS accounting platform with localised features that are integrated within the local infrastructure. We envision Qoyod to be the player that fills this gap and captures the increasing demand,” he added.