Saudi’s Lendo raises $7.2 million in Series A to fuel expansion plans
By Leandra Monteiro
According to media reports, Saudi-based shariah-compliant FinTech firm Lendo has raised 27 million riyals ($7 million) in Series A funding. Lendo is a crowd-lending marketplace that provides small and medium enterprises (SMEs) with the opportunity to digitally pre-finance their outstanding invoices. The Series A round was led by Derayah Ventures. It also included participation from Seedra, Shorooq Partners, 500 startups, and Impact46.
Founded in 2019, Lendo offers loans starting from about $27,000 and going up to $800,000 by connecting SMEs with investors on its marketplace through crowdlending. To apply on Lendo’s platform SME’s require a valid Saudi business license and should have been in operations for at least one year and have an annual turnover of SAR 2 million ($530,000) at least.
According to media reports, Osama AlRaee, CEO and co-founder of Lendo said, “Since our launch, it is noteworthy that we were able to finance more than 100 invoices worth of more than SAR 60 million to SMEs and give back more than SAR 3,000,000 to our investors in profit, with more profit distribution in the pipeline.”
“We provide solutions to two major pain points in the SME finance market. First, the limited options for SME businesses to borrow cash quickly and easily and second, the limited short-term options that offer higher returns for investors/lenders,” added the start-up according to media reports.
Since its launch last year, Lendo claims to have financed over 100 invoices worth over SAR 60 million for SMEs and given more than SAR 3 million in profits to its investors. AlRaee said, “We are proud to be backed by leading investors who have excellent knowledge and experience in the most rapidly maturing MENA entrepreneurial ecosystem. Aside from the financial support and expert advice from the pioneers in the market, their trust in our business model will help us achieve both our short term and long-term goals and scale our business to the next level.”
According to media reports, Mohammad Jawabri, the co-founder and COO of Lendo, said, “As a team of fintech experts, we combine financial expertise with advanced technology to bring our clients solutions that can turn waiting time into a valuable win-win situation for all parties involved. During the pandemic, there was a huge surge in the numbers of SMEs who turned to Lendo for financing to keep their businesses afloat. Our 25% month-on-month growth is a testimony of the hard work, dedication, and commitment of our team.”
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October 03, 2022