- Funding was led by Sanabil Investments, a wholly-owned company by the Public Investment Fund and from Shorooq Partners, AB Ventures, and other investors.
- Shariah-compliant debt crowdfunding marketplace plans an IPO within the next few years.
A Saudi Arabia-based shariah-compliant debt crowdfunding marketplace – Lendo – has secured 105 million Saudi riyals ($28 million) in Series B funding to spread wings into new markets and introduce more innovative financing products.
The funding was led by Sanabil Investments, a wholly-owned company by the Public Investment Fund and from Shorooq Partners, AB Ventures, and other investors.
Lendo, licensed by the Saudi Central Bank (SAMA), helps pre-finance outstanding invoices for businesses in Saudi Arabia.
“We are going to make financial services more accessible, affordable, and inclusive for everyone. I am excited to see what the future holds for our company,” Osama Alraee, CEO, and co-founder of Lendo, said.
He also disclosed its plans for an IPO within the next few years.
Lendo had raised a 27 million riyals ($7.2 million) Series A funding in 2021 led by Derayah Ventures with participation from Seedra Ventures and other investors, bringing the fintech’s total funding to SAR 132 million ($35.2 million).
“Lendo is transforming the financial services industry in their specialist area of Shariah-compliant digital lending for SMEs. The Lendo team has achieved a significant amount in a relatively short period of time, and we are eager to join their journey of increasing access to flexible financial solutions in Saudi Arabia and the region at large,” Sanabil Investments said.
Well-positioned to lead the charge
Mohamed Jawabri, COO and co-Founder of Lendo, said the growing demand for alternative, agile, and accessible lending solutions presents a significant opportunity.
“We are well-positioned to lead the charge in promoting financial inclusion not only in Saudi Arabia but also beyond. By fuelling SME growth, we aim to contribute to the realization of Saudi Arabia’s Vision 2030 economic goals and to create a ripple effect of opportunity throughout the MENA region,” he said.
Total value of debt crowdfunding
Since the inception of Dec 2019, Saudi fintech Lendo has processed more than 2,500 financing transactions on its platform, providing over one billion riyals ($300 million) in financing to SMEs and generating SAR 140 million ($37 million) returns for investors.
Lendo’s debt crowdfunding platform aims to bridge the financing gap for SMEs, which aligns with the Saudi Vision 2030 to significantly expand SME lending from 4 per cent in 2018 to 20 per cent by 2030.
The total value of debt crowdfunding in Saudi Arabia surged from 1.4 million SAR in 2019 to SAR 771 million in 2022, marking a remarkable 430 per cent growth, according to SAMA’s annual fintech report 2022.