- The leading Saudi fintech startup secured $28 million in its latest funding round led by Sanabil Investments. Total funding raised so far stands at $35.2 million.
- Lendo will use the funds to rapidly scale up operations, launch innovative products, enter new markets beyond Saudi Arabia, and serve thousands more SME customers.
- The startup aims to boost financial access for underserved sectors like SMEs – contributing to the 2030 target of increasing SME lending to 20% in the Kingdom, up from just 4%.
Riyadh-based fintech startup Lendo has secured SAR 105 million ($28 million) in a Series B funding round led by Sanabil Investments. The leading Shariah-compliant digital lending marketplace plans to leverage the fresh capital to turbocharge its growth – expanding into new markets while enhancing its alternative finance solutions for SMEs in Saudi Arabia and beyond.
Founded in 2019, Lendo has experienced exponential growth in a short span – processing over 2,500 financing transactions worth SAR 1 billion ($300 million) via its platform so far. The startup has made significant strides in providing easily accessible and flexible short-term financing to high-potential SMEs across key sectors in Saudi Arabia – helping drive their growth.
At the same time, the fintech’s data-driven underwriting framework and portfolio performance generate double-digit returns for investors on the platform – making it an attractive alternative asset class.
“With this new funding, we will rapidly scale up our operations, expand into new markets in the region, support thousands of new customers with innovative Shariah-compliant products catering to their needs, and accelerate our growth further,” said Lendo’s CEO Osama Alraee, commenting on their plans.
The latest funding round saw participation from existing investors including Shorooq Partners, AB Ventures, Seedra Ventures, and Derayah Ventures – alongside lead investor Sanabil Investments. With total funding raised so far at SAR 132 million ($35.2 million), the injection of growth capital will allow Lendo to tap into the massive $5.2 trillion SME financing gap in developing countries like Saudi Arabia.
Despite contributing around 40% to the GDP, SME lending currently stands at just 4% in the Kingdom – well below the 20% target under Vision 2030. As a leading homegrown fintech, Lendo is poised to drive greater financial inclusion and access to credit for small businesses in the country.
The company also has ambitious plans to go public within the next few years, disclosed CEO Alraee. Lendo’s exponential growth trajectory, strong balance sheet, and innovative credit risk management make it a high-potential fintech startup in the Middle East region’s rapidly evolving digital finance landscape.
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Last Updated on December 11, 2023 by Safiya K
