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Revolutionizing E-Invoicing in the MENA Region
In the world of startups, where 90% fail to make it past the early stages, InvoiceQ succeeded in defying the odds. With a clear vision and a persistent focus on financial precision, they not only survived but also thrived, raising up to $1.3M and setting the stage for exponential growth.
In August 2020, InvoiceQ was founded by four seasoned experts in Jordan: Fadi Aljabali, Amer Ayyad, Mohammad Baseet, and Muhannad Tobal, each bringing decades of experience in FinTech and the invoicing industry. They recognized an opportunity to revolutionize how businesses manage their invoicing and set out to build a platform that would simplify and enhance this critical process.
InvoiceQ is an innovative SaaS platform designed to meet the unique needs of businesses in Saudi Arabia and beyond. The founders understand that businesses need more than just basic tools; they need a partner that ensures compliance, increases efficiency, and provides real-time insights. That’s why InvoiceQ aligns with the strict Zakat, Customs, and Tax Authority (ZATCA) regulations in Saudi Arabia and seamlessly integrates with the SADAD payment gateway.
InvoiceQ operates in Saudi Arabia, Jordan, and Oman, with plans for further expansion. Their ambition didn’t stop there, as the main goal was to transform invoicing into a strategic advantage, from issuance to payment collection. The platform features a dynamic workflow approval engine, real-time data, and a two-way customer/vendor channel, which reduces human errors and enables smarter, faster decision-making. The platform also offers flexible subscription plans and seamless API integration for large enterprises.
Turning Ideas into Reality
CEO Muhannad Tobal noted their toughest challenge was securing funding and market validation before having a product, stating, "Convincing people of the potential of an idea that didn't yet exist was one of the hardest obstacles we faced." Despite the challenges faced in the ecosystem, InvoiceQ was determined to turn its innovative ideas into a viable business.
Securing Early Funding
Launching InvoiceQ required more than just a visionary idea; it needed strategic investors and significant capital. Co-founder Muhannad Tobal emphasized, “To see our idea come to life, we had to find the right strategic investor...someone who would be a true partner, believed in us, and provided business and technical mentorship.” InvoiceQ secured a critical $190,000 pre-seed investment from Ahli Fintech, the innovation incubator of Jordan Ahli Bank, enabling the team to launch their MVP in Q1 2021.
They worked with Jordan Ahli Bank to update its invoicing system, turning a tough challenge into a success. This transformation proved their solution was successful, impacting many customers and the bank itself. With their support, by Q1 2022, over 40 businesses had issued more than 10,000 invoices totaling USD $170 million through InvoiceQ.
Encouraged by this success, Ahli Fintech committed an additional $250,000 in seed funding. Ghassan Muasher, CEO of Ahli Fintech, highlighted how InvoiceQ enhanced Jordan Ahli Bank’s credit facilities, stating, “With the impressive technical expertise of the founding team, investing in InvoiceQ was a natural fit with our investment thesis.”
Propeller’s investment in InvoiceQ was driven by the team’s exceptional credentials and perfect timing. With Fadi Aljabali’s experience at ProgressSoft, Amer Ayyad’s background with MadfooatCom, and Mohammad Basset’s financial expertise in KSA and Muhannad Tobal’s business acumen, Propeller noted, “The InvoiceQ team checks all the boxes with their deep technical know-how and complementary skills.”
The Middle East’s E-invoicing market, ripe for innovation with mandates in KSA and Egypt, created ideal conditions for InvoiceQ’s launch. With the global E-invoicing market projected to grow from $8.74 billion in 2021 to $29.68 billion by 2027, InvoiceQ’s execution and vision made it a compelling investment.
Rising Fast in FinTech
InvoiceQ is in a thrilling growth phase, its achievements include:
- Receiving $1.3 million investment from Ahli Fintech, Flat6Labs, Propeller, and Angel Investors
- The company scaling its operations, with issued invoices increasing from 1.3K invoices in 2021 to an impressive 750K in 2023
- Invoice amounts increased, climbing from $11 million to $2 billion in 2023
InvoiceQ’s customer base has also seen impressive growth:
- Customer numbers surged from 26 in 2021 to 130 in 2023, while sales rocketed from $14K to $470K.
- InvoiceQ’s customer base expanded by over 400% from 2021 to 2023.
- The total value of issued invoices grew by nearly 18 times, highlighting a remarkable acceleration in both customer adoption and financial throughput.
All these achievements were once challenges that took a lot of effort and dedication to overcome.
Focused Growth
InvoiceQ's growth and expansion were strategically driven by several factors, with smart fundraising decisions being the primary one. Co-founder Muhannad Tobal emphasized, “With the fund, we had the courage and decisiveness to spend wisely. We chose not to take enough money to last us a year, but instead enough for 6 months which will make us sustain”
This approach ensured that the funds drove growth rather than merely sustaining operations. InvoiceQ invested heavily in building a strong support team and enhancing technology to meet customers' needs and stay ahead in the market, with Muhannad stating, “Most of the investment went into development, and we tried to work smartly through partnerships to achieve our goals.”
Remaining focused on E-invoicing was crucial; despite various opportunities, Tobal noted, “We always made the decision to stick to E-invoicing and not pursue anything else. We knew that if we didn’t stay focused, we would fail.” The team actively sought feedback from customers, leading to significant platform enhancements.
Timing also played a vital role: “We entered the market at a very opportune time, especially in the Saudi market and MENA region overall.” InvoiceQ’s expansion into Saudi Arabia was a strategic endeavor fueled by proactive fundraising and partnership development. Co-founder Muhannad Tobal explained the initial challenges, saying, “We weren’t a company in Saudi Arabia; we had no presence there. So how could we start and sell in Saudi Arabia?” To tackle this, the team booked their ticket to Saudi Arabia driven solely by determination, without a plan in mind. They started contacting companies, hosting webinars, and seeking potential partners.
One of the challenges they faced was finding local partners to support their market entry. Muhannad noted that one significant partnership was with a tax consultant they knew from Jordan: “We discovered that he had a company in Saudi Arabia, so we decided to collaborate, especially since invoicing impacts taxation. We organized a webinar together to attract potential clients.” This strategic approach facilitated their market entry and increased their exposure in the Saudi market.
While smart partnerships have been vital for their growth, nurturing trust and transparency with investors became equally important for long-term success.
InvoiceQ’s relationship with its investors, particularly Ahli Fintech and Flat6Labs, was built on a foundation of trust and transparency. Co-founder Mohannad Tobal noted, “Of course, it was very difficult to build trust between us and them, especially since Flat6Labs and Ahli Fintech are two leading VC firms.” To bridge this gap, the team engaged in extensive sessions and workshops, spending considerable time together to demonstrate their commitment and direction.
The company’s success largely stemmed from cultivating a strong bond with its first investor, Ahli Fintech, which provided invaluable support in decision-making, mentorship, and guidance. “Transparency from the beginning was key to maintaining a healthy, long-lasting relationship with investors,” he stated, underscoring that this openness is essential for sustained success. Frequent meetings, especially in the early stages, played a crucial role in establishing the confidence needed for a fruitful relationship.
Impact of StartMashreq
Later, this trust led to their selection for the Growth Track of StartMashreq Program, launched in partnership between the IFC, a member of the World Bank Group, the Government of the Netherlands, and Flat6Labs, which supports high-potential growth-stage startups in Jordan, Lebanon, and Iraq. The program focuses on helping startups scale and raise funds to elevate the regional ecosystem.
The StartMashreq program aims to empower growth-stage startups in Jordan, Lebanon, and Iraq by providing resources for scalability. Through business networking events, international event subsidies, investor mixers, and access to legal expertise, the program fosters partnerships, funding opportunities, and global exposure to drive success in these ecosystems.
InvoiceQ attended several events through StartMashreq, including:
- LEAP
- Flat6Labs x StartMashreq Investor Mixer in UAE and another one in KSA
- GITEX/Expand North Star in Dubai
- Web Summit in Lisbon
- Biban 24 in KSA
- Flat6Labs x StartMashreq Networking Event in KSA
- Fintech 24 in Riyadh
StartMashreq, alongside Flat6Labs, increased its exposure to the Saudi market and global ecosystems, driving success.
Tobal shared, “StartMashreqwas the perfect balance of simplicity and usefulness, straight to the point.” StartMashreq also helped InvoiceQ attend global events, enhancing its brand image and supporting potential partnerships and investments.
Paving The Way
In his advice to early-stage and growth-stage startups, Mohannad Tobal emphasized the importance of staying focused, listening to the market, and having the patience to reach their ultimate goals. He encouraged startups to "be patient and believe you will reach the final destination." For startups based in Jordan, he added, "Think about how to expand beyond Jordan," highlighting the need to explore opportunities outside local borders for greater growth and success.
Recently, InvoiceQ has been securing its latest funding round, raising $1.2M with contributions from Flat6Labs, NOTOS Soft, and Avaya to expand in the GCC. Their journey is far from over, with more chapters to unfold and even greater achievements on the horizon.