Barq Raises $329.5 Million at a $1.85 Billion Valuation

Saudi payments company "Barq" raised $329.5 million in a Series A funding round at a $1.85 billion valuation, becoming the latest Saudi startup to cross the $1 billion valuation mark.

The company stated that its users surpassed 15 million from over 210 nationalities, and that it has processed over 440 billion riyals (around $117.3 billion) since its launch in 2023. It added that last April, it launched cross-border QR code payment services in collaboration with "Alipay+".

Investors participating in the round included "Noon Investments", "Sohar International", and "M20 Fund", according to "The Street". Barq is a payments company licensed by the Saudi Central Bank, and its founder and CEO, Ahmed Al-Enezi, stated that Saudi Arabia is already well-banked, rather than an underbanked market.

The funding comes at a time of accelerating competition among digital payment companies in Saudi Arabia, as firms seek to capitalize on consumer shifts toward electronic payments and expand cross-border services. Barq says it reaches about 75% of the bankable population and more than 55% of the total population.

What do these terms mean?

Series A Round: The first major funding round for a startup following seed funding, typically used to expand the product and market presence.

Valuation: The estimated market value of a company, usually calculated based on the price investors pay for a stake in it.

Licensed Payments Company: A company providing electronic payment and transfer services after obtaining a license from the central bank.