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.

🔗 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