In emerging markets, debt collection often feels stuck in the past—slow, costly, and frequently damaging to borrower relationships. But as digital lending grows and regulators clamp down on aggressive recovery practices, there’s a growing demand for smarter, more ethical solutions. Enter ClearGrid, an AI debt collection startup out of Dubai that just secured $10 million in funding. Founded less than a year ago, ClearGrid is taking aim at outdated recovery methods, offering banks and fintech lenders an automated, data-driven platform designed to recover debts efficiently—without harassing borrowers.
For CEO and co-founder Mohammad Al Zaben, ClearGrid was born from a firsthand struggle with payments at his previous startup, Munch:On, which was acquired by Careem in 2022. “We faced real challenges collecting from corporate clients,” Al Zaben shared. “It opened my eyes to just how broken the debt collection space is—still reliant on paper, spreadsheets, and intimidation.”
That realization sparked ClearGrid’s mission: to replace fear-based collection tactics with AI-driven insights that improve recovery while respecting borrowers. Alongside co-founders Khalid Bin Bader Al Saud and Mohammed AlKhalili, Al Zaben set out to build software that redefines what modern debt recovery should look like in the Middle East.
The timing couldn’t be better. Consumer lending is booming, especially with buy now, pay later (BNPL) services like Tabby and Tamara fueling billions in unsecured loans. Meanwhile, regulators in Saudi Arabia and the UAE are pushing for better consumer protections. The result? A perfect storm that makes ClearGrid’s solution incredibly timely.
Rather than acting as a traditional collections agency, ClearGrid positions itself as an intelligent middle layer between lenders and borrowers. Its platform uses AI to analyze borrower behavior, predict repayment likelihood, and customize outreach through voice, text, and digital channels.
“Debt collection shouldn’t be about forcing people to pay—it should be about helping them repay in a way that works,” Al Zaben explained. “That’s what our AI enables.”
Today, more than 95% of ClearGrid’s operations run automatically. AI voice agents handle hundreds of thousands of calls daily, while the system continuously learns from borrower interactions to fine-tune recovery strategies. For those who prefer a human touch, borrowers can still speak to live agents, with those conversations feeding insights back into the system.
What sets ClearGrid apart is its borrower-first approach. The platform segments users based on their financial situation and designs realistic, bite-sized repayment plans. This not only improves recovery rates but also preserves borrower trust—a critical factor in markets where lenders often struggle to maintain goodwill.
Since officially launching in 2024, ClearGrid has managed hundreds of millions of dollars in debt portfolios. It has already signed deals with ten of the UAE’s leading banks and fintech players. One major bank reported a 30% boost in recoveries and cut its collection costs in half. A top BNPL platform doubled its early-stage recoveries using ClearGrid’s automated system.
On average, ClearGrid claims to resolve debts twice as fast as legacy collection agencies, with a 38% to 50% improvement in resolution rates. Borrower engagement is also higher—60% more frequent than traditional approaches—proving that AI-led communication resonates better.
The startup’s business model is simple: it earns a percentage of the amounts recovered. This has helped ClearGrid achieve profitability in the UAE, with revenue growing 30% month over month. The platform currently handles over 130,000 borrower accounts every month and is preparing to expand into Saudi Arabia this year.
With the fresh funding, ClearGrid plans to double its engineering team and expand its AI capabilities. “Our vision is to build the region’s leading credit orchestration infrastructure—smarter, scalable, and designed for the digital age,” Al Zaben said.
Investors in this round include regional heavyweights like Beco Capital, Nuwa Capital, and Raed Ventures, alongside notable angels such as Anu Hariharan (former YC partner), Replit CEO Amjad Masad, Marqeta’s Jason Gardner, and Twitch co-founder Justin Kan.
As Al Zaben put it, “Debt collection doesn’t have to be predatory. If you build with empathy and intelligence, you can create something that helps both lenders and borrowers. That’s what ClearGrid is here to do.”
With AI reshaping industries across the globe, ClearGrid’s approach offers a glimpse into the future of debt recovery—one where efficiency and empathy finally coexist.
