Qatar-Based PayLater Cashes In US$10 Million In Seed Funding

Qatar-based buy now, pay later (BNPL) platform PayLater has bagged US$10 million in a seed funding round led by Abu Dhabi-based LuLu Alternative Investments (LuLu AI, the investment arm of LuLu Financial Holdings) with participation from Qatar Development Bank (QDB) and Doha-based diversified investment group KBN Holding, alongside a group of angel investors. 

Founded by Mohammed Al-Delaimi and Khalifa Saleh Al Haroon in Qatar in 2023, PayLater offers interest-free installment payment solutions designed specifically for the local market. The company has steadily built its presence under the oversight of the Qatar Central Bank (QCB), becoming one of the first platforms to receive a BNPL license in June 2025, in addition to securing an undisclosed strategic investment from LuLu Alternative Investments. 

As PayLater moved from early entry to broader adoption, its ability to perform consistently in live market conditions became central to conversations with investors. In an interview with Inc. Arabia, Al-Delaimi said investor conviction was shaped by how the business held up once it moved beyond initial launches and pilot integrations, particularly as PayLater began operating at scale across merchants and users. “What gave us confidence, and ultimately gave investors confidence, was not just demand but repeatable behavior," he said. "We saw consistent growth in active users, increasing transaction frequency, and strong merchant retention across key verticals. Merchants were not only integrating PayLater, they were actively pushing it as a preferred payment option because they could see its impact on conversion and basket size."

That progress also influenced the decision of existing backers to deepen their involvement as the company advanced through successive operational milestones. “For returning investors like LuLu AI, the signal was execution," Al-Delaimi said. "We moved from concept to licensing, from pilot merchants to scale, and from early adoption to a regulated, operational platform under the Qatar Central Bank. That discipline and pace showed that PayLater was ready for a larger phase of backing."  

Beyond helping the company secure follow-on support, those same building blocks helped frame the opportunity for investors entering the round for the first time. “For new investors, the proof points were clear: regulatory clarity, strong unit economics, a Sharia-compliant model built specifically for Qatar, and a leadership team that understands both fintech infrastructure and local market dynamics," Al-Delaimi explained. "This wasn’t a growth story based on hype, but on fundamentals."  

PayLater CEO Devid Jegerson.

From the company’s perspective, those fundamentals reflect a broader reality about building BNPL businesses in tightly regulated markets such as Qatar. Indeed, PayLater CEO Devid Jegerson noted that expectations around speed and expansion can distract from what actually underpins sustainable growth in the Gulf nation. “The biggest misunderstanding is thinking BNPL is a short-term consumer growth play," Jegerson told Inc. Arabia. "In markets like Qatar, BNPL is fundamentally about trust, regulation, and ecosystem alignment. You cannot scale without regulatory credibility, and you cannot build trust without transparency and discipline. Another misconception is assuming that models successful elsewhere can simply be copied. Qatar requires a local-first approach, especially when it comes to compliance, Sharia alignment, merchant settlement, and consumer protection. BNPL here is not about pushing credit, it’s about enabling responsible access.”

With the new capital, PayLater is preparing to extend its offering beyond retail into sectors such as travel, education, and healthcare, where installment payments are increasingly being considered part of everyday financial planning. “These sectors involve high-consideration, high-value decisions," Jegerson pointed out. "Consumers are increasingly looking for flexibility that allows them to plan rather than postpone. BNPL enables that by removing immediate financial friction without encouraging irresponsible spending. In education and healthcare especially, installment payments offer predictability and dignity. They allow families to access essential services while managing cash flow responsibly. In travel, BNPL helps consumers plan experiences rather than compromise on quality or timing. Across all these sectors, the value is control, clarity, and confidence.” 

As PayLater thus charts its next phase of growth, Al-Delaimi drew on his experience to offer lessons for other founders raising funds to scale their enterprises. “Don’t fundraise on vision alone," he said. "Investors want to see that you can execute under real constraints. Focus on showing how your business behaves in the real world, how customers use it, how partners depend on it, and how regulation strengthens rather than slows you down." 

Al-Delaimi also noted that choosing the right capital partners can be as important as securing funding itself. “I also wish someone had told me earlier that saying ‘no’ is as important as raising capital," he added. "The right investors bring more than money. They bring alignment, patience, and long-term thinking. That makes all the difference when building something meant to last." 

Pictured in the lead image is PayLater co-founder Mohammed Al-Delaimi. All images courtesy PayLater.