"We Got Funded!" Dubai-Based Fintech Startup Mamo Raises A US$3.4 Million Funding Round The newly raised capital will be allocated to expand Mamo's product offering within the UAE and support testing its product lines in Saudi Arabia.

Mamo, a UAE-based fintech startup simplifying the financial operations and enhancing cost efficacy of MENA SMEs, has raised a US$3.4 million funding round.

The round was led by the startup's existing investor 4DX Ventures, a pan-Africa focused venture capital fund, and it also included Dubai Future District Fund, Dubai's venture capital fund of funds, and Cyfr Capital, an Oman-based venture capital fund.

To date, Mamo has raised a total of $13 million in funding, with its earlier investments being a $1.5 million round in 2019, and a $8 million round in 2021.

Mamo's product offering includes the services of payment collection, corporate cards, and expense management, that are all consolidated under one financial services platform. The newly raised capital of $3.4 million will be allocated to expand Mamo's product offering within the UAE, and support testing its product lines in Saudi Arabia.

When asked for advice about building a functioning product like that of Mamo's, co-founder and CEO Imad Gharazeddine advises entrepreneurs to ensure a detailed distribution plan at the outset. "Distribution is more important than product," he says. "Because it is one thing to build a stellar product, but often-times a sub-par product can beat a superior product simply because the sub-par product has a clearer and more effective go to market strategy behind it."

He also suggests building the cheapest version of a product as soon as possible. "Always launch early," Gharazeddine says. "If you're not embarrassed by the version one of your product, you probably launched too late. Launching early and putting the product in the hands of your users will give you the feedback you would likely have been avoiding, because you're too in love with the 'idea' you came up with."

Here, Gharazeddine also points to a difference between product managers and product owners or project managers. "The difference is not subtle at all, because it takes a very strong product manager or a team of them to successfully and effectively build a product that is both business viable, user desirable, and technically feasible," he says. "Often times, we've seen companies build products without product managers, and it almost always ends with a sub-par user experience. Product management involves balancing business needs with user needs to create a sustainable solution that works for both the company and the market it is operating in."

Gharazeddine thus urges startup founders to be extremely focused and intentional about what they are building, and for who they are building it. "Fragmented focus can lead to death, in that resources are squandered aimlessly without a clear vision and a clear definition of who your ideal customer profile is," Gharazeddine says.

Given Mamo's fundraise, when asked to advise his fellow entrepreneurs on raising venture capital funds, Gharazeddine says that they should pursue it only in case of high capital expenditures and operating expenses. "On top of that, I would recommend raising venture capital only if the product you're building has a high risk of failing," Gharazeddine adds. "This is really the only time I'd consider venture capital as a form of funding. After all, it is designed to be a source of high-risk, high-reward investments."

Related: Forging Ahead: How The Middle East Has Become A Driving Force In The Global Fintech Landscape