We are happy to announce our investment in Qoyod, the Saudi-based SaaS accounting platform. The investment round of $2.1M is led by Merak Capital with participation from other investors.
Our thesis is built on market dynamics, growth factors, and solid execution by Qoyod’s team in building one of the best home-grown SaaS platforms in the Kingdom of Saudi Arabia. Qoyod is not only solving local operational challenges in accounting and finance in KSA, but also neighboring countries where expansion is already underway, with a competitive localized approach.
Founded by Abdullah Aldayel in 2016, Qoyod enables thousands of businesses to manage their day-to-day accounting and finance operations, having real-time access to their data with powerful management tools. Qoyod is positioned to be the one-stop financial solution for SMEs in the region. A few product roll-outs are in the pipeline, offering more comprehensive features that connect business owners to complementary financial products and services.
Internationally, businesses are spending $6.4B annually on accounting software, which is expected to reach $10.5B by the end of 2027, exhibiting a CAGR of 7.4%. We predict the local direct market size to be more than $500M with 13% annual growth, while adjacent verticals exceed $2B in opportunity size. This is based on the current adoption of Computerized Accounting Software (CAS) and the growing number of SMEs regionally.
Globally, the CAS market has shifted from on-premise to cloud-based software as internet connectivity accelerated and scalable business models became feasible. This shift has also empowered end-users to enjoy better prices, access their financial data anytime and anywhere, and transfer the burden of maintenance and system updates to their service providers.
Demand for advanced accounting and financial solutions in KSA is accelerating. Vision 2030 is expected to increase SMEs contribution to GDP from 20% in 2016 to 35% in 2030, all of which will need myriad types of services and technologies to operate and scale. Regionally, VAT, corporate income tax, Zakat, and other forms of taxes are being implemented, which will require robust platforms to track and process from both ends, the payer and the payee. All this demand, and more, for technologically enabled solutions that are localized, will only increase and expand the addressable market for Qoyod and similar services, both directly and adjacently.
The opportunity for Qoyod in KSA is sizable and growing rapidly, but the solution’s interoperability across jurisdictions is a key driver in its regional growth potential. SaaS platforms are naturally unique in their scalability, and we believe Qoyod with its exceptional team has what it takes to grow and succeed on this exciting opportunity.