Gainz Cashes In Seven-Figure Pre-Seed Round For Expansion
The co-founders of the UAE-based fintech startup told Inc. Arabia how they want to rewrite the rules of SME financing in the GCC—one Shariah-compliant investment at a time.
UAE-based fintech startup Gainz has bagged an undisclosed seven-figure pre-seed round, structured as a mix of equity and debt, to grow its Shariah-compliant financing platform targeting underserved small and medium enterprises (SMEs) across the Gulf region.
The round was led by investors like Antler MENAP, Lithium Holdings, and Eleventh Invest Inc., with support from high-net-worth-individuals across the region.
Founded by seasoned entrepreneurs Shehab Mokhtar and Sherif Abdelaty in the UAE in December 2024, the platform’s creation was deeply informed by the co-founders’ entrepreneurial experience. “Our own entrepreneurial journey—experiencing both capital scarcity and inefficient investor access—made it clear that the solution had to be inclusive on both sides,” they told Inc. Arabia in an interview. “Gainz was born from that conviction: to be the region’s go-to platform for alternative financing and alternative investing, underpinned by transparency, ethics, and access.”
Co-founders Mokhtar and Abdelaty boast deep experience in venture building, cross-border operations, and strategic leadership across multiple sectors. Before launching Gainz, Mokhtar founded and led Appetito, a Cairo-based quick commerce startup, scaling it to serve over one million households across Egypt, Tunisia, and Morocco. Abdelaty most recently served as Chief Operating Officer (COO) and board member at DillX, a regional consulting firm, where he led commercial and operational growth, expanded into seven countries across the MEA, and played a key role in a successful strategic exit.
Together, Mokhtar and Abdelaty built Gainz to fix what they described as a double-sided market failure, specifically targeting “underserved SME’s struggling to access fast, flexible capital, and individual investors locked out of high-quality alternative investment opportunities," they told us.
“Traditional banks in the GCC remain heavily risk-averse—requiring 2+ years of operations, audited financials, and collateral. These hurdles leave early-stage, high-potential businesses without funding options,” the founders explained. “On the investor side, average deposit returns across the region hover around 1–2 percent, with few accessible, Shariah-compliant ways to diversify into private markets.”
Gainz’s model allows individuals to fund working capital for vetted SMEs through Shariah-compliant campaigns, starting from just US$500. In return, investors can earn annualized returns of 8–10 percent.
In an uncommon move for a pre-seed startup, Gainz structured the round as a mix of equity and debt—a decision the founders say aligns with the company’s capital-efficient approach. “Our blended structure of equity and debt was a strategic move aligned with how we believe modern fintech should operate,” Mokhtar and Abdelaty noted. “Equity allows us to build the infrastructure—our platform, compliance engine, and expansion roadmap. The debt portion guarantees immediate deployment into SME financing campaigns.”
That model also reflects how the founders want Gainz to be perceived. “This model mirrors what we offer our users: capital efficiency, smart leverage, and speed. It also signals how we view Gainz—not just as a software company, but as a next-gen financial enabler with the DNA of a capital allocator. Going forward, we intend to structure future rounds and mini funds with institutional-grade discipline, always blending technology with smart financial engineering.”
The co-founders stressed that they consider risk from the dual lens of simplifying processes for founders and protecting investors, which is reflected in their underwriting process. “Our underwriting engine factors in both quantitative metrics and alternative data signals—helping us vet SMEs faster without compromising standards. What makes this powerful is that it’s all done within Shariah principles, creating trust on both sides of the table.”
With fresh funding in hand, Gainz is now focused on scaling its presence in Bahrain and the UAE—two markets known for forward-thinking regulators and large SME ecosystems. “These ecosystems are ideal for launching our automated onboarding, campaign creation, and investor matching tools, while also securing early regulatory wins,” the founders said.
Additionally, Gainz is eyeing expansion into Saudi Arabia, Oman, and the wider MENAP region. "We’re prioritizing SME verticals with predictable cash flow but limited access to finance—such as F&B, logistics, e-commerce, production, and industrial companies are favored. Many of these businesses are profitable but lack the banking history or collateral that traditional institutions require.”
Furthermore, the round will be used to finalize licensing and compliance infrastructure across Bahrain, the UAE, and KSA. It will also support Gainz in enhancing and preparing a scalable version of its automated credit scoring and campaign engine. Additionally, the funds will enable the startup to close its first 100 fundraising campaigns for SMEs and strengthen its presence and partnerships across the GCC region.
Looking ahead, Mokhtar and Abdelaty highlighted three key trends that they believe will shape the fintech industry's future in the region. Specifically, they noted the democratization of capital markets, driven by retail investors increasingly looking beyond traditional savings. Additionally, they believe that Shariah-compliant fintech is increasingly being mainstreamed, making compliance a brand and trust advantage. Finally, they note that intelligent underwriting models will enable credit decisions to be driven by real-time data rather than outdated paperwork.
“The next 3–5 years will see a convergence of regulation, investor behavior, and SME digitalization. Gainz is positioning itself to be at the heart of this evolution—with a platform that removes friction, lowers barriers, and expands access to both capital and investment,” Mokhtar and Abdelaty concluded.
Pictured in the lead image are the co-founders of Gainz Sherif Abdelaty (L) and Shehab Mokhtar (R). Image courtesy Gainz.
