ClearGrid’s AI-Driven Debt Collection Platform Attracts $10M in Funding for Expansion

Debt collection in emerging markets has long been an outdated, costly, and often aggressive process, eroding borrower trust. As consumer lending grows and regulatory bodies push for fairer collection practices, traditional collection agencies are struggling to keep up.

Dubai-based startup ClearGrid is stepping in to modernize the industry with artificial intelligence. Emerging from stealth with $10 million in funding ($3.5 million in pre-seed and $6.5 million in seed funding), ClearGrid is focused on helping banks, fintechs, and lenders recover outstanding debts efficiently and ethically; without resorting to harassment.

Co-founder and CEO Mohammad Al Zaben believes the capital will be key in driving ClearGrid’s ambitious mission to reshape the debt collection landscape.

Al Zaben first encountered the challenges of debt collection after selling his previous startup, Munch: On, to Careem in 2022. While reflecting on his past business experiences, he recognized a major issue: collecting payments from corporate customers was a cumbersome and inefficient process.

Delving deeper, he realized that consumer debt collection was an even larger problem. Many collection agencies still relied on outdated methods; some used pen and paper, while others operated with basic customer relationship management (CRM) tools. The industry was heavily human-driven, with collectors often using coercion and scare tactics to recover debt.

“We saw an industry stuck in the past,” Al Zaben explained. “Borrowers had a terrible experience, and regulators in Saudi Arabia and the UAE were starting to prioritize consumer protection.”

At the same time, consumer lending was surging. Buy Now, Pay Later (BNPL) giants like Tabby and Tamara were handling billions in sales, while unsecured lending was skyrocketing across the Middle East. Seeing an opportunity, Al Zaben partnered with Khalid Bin Bader Al Saud and Mohammed AlKhalili to launch ClearGrid, creating AI-driven solutions that streamline debt recovery and integrate seamlessly with existing collection vendors.

“At a time when lending is booming, regulations are tightening, and AI is reshaping industries, we see this as an opportunity to help lenders recover debt while building trust with borrowers,” said Al Zaben.

AI-Powered Collection and Recovery
ClearGrid operates as an AI-driven intermediary between lenders and borrowers, automating the debt collection process. Lenders integrate with ClearGrid’s platform or API, sending borrower accounts for automated processing.

The company’s AI models analyze borrower behavior to predict repayment likelihood, personalize outreach, and optimize communication strategies across various channels.

According to Al Zaben, 95% of ClearGrid’s operations are automated, including AI voice agents that handle hundreds of thousands of calls daily. For borrowers who prefer human interaction, the platform facilitates direct conversations, feeding valuable insights back into its AI models.

ClearGrid categorizes borrowers based on their ability and willingness to pay, structuring repayments into manageable chunks while encouraging repayment without aggressive tactics. The platform claims to reduce collection costs by 50% compared to traditional agencies.

“We’re not just modernizing debt collection,” said Al Zaben. “We’re building purpose-driven tools to help lenders recover debt responsibly, while also giving borrowers a fairer path to financial recovery.”

Since its 2024 launch, ClearGrid has already managed hundreds of millions of dollars in debt portfolios and secured partnerships with ten major banks and fintech companies in the UAE.

ClearGrid claims its AI-powered approach resolves debts twice as fast as traditional collection agencies, with resolution rates improving between 38% and 50%. Borrowers also interact with ClearGrid’s platform 60% more than they do with conventional collection services.

The company operates on a performance-based model, charging a percentage fee on recovered amounts. ClearGrid is already profitable in the UAE, with revenues growing at a 30% month-on-month rate. The company now plans to expand into Saudi Arabia in 2024.

With the newly secured funding, ClearGrid aims to 10x its revenue and borrower accounts managed in 2024; currently engaging with 130,000 borrower accounts monthly. ClearGrid will double its engineering team in the next quarter as it builds what Al Zaben calls the “definitive credit orchestration infrastructure for the region.”