Mamun, a fintech startup based in Muscat, has announced the completion of a $3 million USD seed funding round. The round was led by Phaze Ventures through its Oman fund, with participation from the UAE-based Jasoor Ventures.
Through this funding, the company aims to expand its trade deal origination operations and improve its AI-driven credit assessment capabilities to strengthen the trade corridor connecting the Greater Bay Area in China, the Sultanate of Oman, and the United Arab Emirates.
Bridging the global trade finance gap
This move comes at a time when the global trade sector is facing significant financing challenges; the Asian Development Bank estimates the trade finance gap to be approximately $2.5 trillion. Small and medium-sized enterprises (SMEs) face extreme difficulty in accessing liquidity, as about 41% of trade finance applications submitted by them are rejected due to traditional banks' reliance on long-term financial records that startups struggle to provide.
How AI enhances credit trust
The Sharia-compliant Mamun platform relies on artificial intelligence technologies to overcome traditional assessment hurdles. Instead of relying solely on long-term financial history, the platform's credit assessment system analyzes several technical and commercial elements, including:
- Contract analysis: Examining the terms of commercial agreements to ensure their integrity.
- Buyer assessment: Studying the creditworthiness of counterparties.
- Commercial documents: Automated auditing of documents related to shipments.
- Transaction records: Analyzing trade flow data to accurately assess risks.
The platform's deal origination engine monitors and analyzes a deal from the moment it is formed, allowing investors to finance the time gap between shipping goods and collecting payment, which typically ranges from 60 to 90 days.
Trade corridor strategy: From Muscat to Hong Kong
Mamun features a technical and regulatory infrastructure designed to serve cross-border trade, which represents a competitive advantage in a market dominated by local platforms. The company operates through a strategic corridor connecting three main hubs:
- Muscat: As a headquarters regulated by the Capital Market Authority of Oman for deal origination.
- Abu Dhabi: To secure Gulf capital and UAE flows.
- Hong Kong: As a financing gateway for the Greater Bay Area and trade routes with Asia.
Data indicates the success of this model, as about 40% of trade finance settlements on the platform are executed through financial institutions and companies based in Hong Kong. This expansion coincides with a 10% growth in Omani non-oil exports, reinforcing the need for flexible technical solutions to support this growth.