Saudi Arabia: Lendo, the Saudi Arabia-based shari’ah compliant Fintech startup, has raised a $7.2M Series A funding round (27M Saudi riyal), led by Derayah Ventures, with participation from Seedra, Shorooq Partners, 500 Startups, and Impact46.
Co-founded in 2019 by Osama AlRaee (CEO) and Mohammad Jawabri (COO), Lendo offers SMEs to digitally pre-finance their outstanding invoices.
Whilst the lockdown period presented acute cash burn pressure for most SME businesses as activity levels fell off, Lendo was able to help them maintain sustainable levels of working capital, the startup has shared.
Osama AlRaee, CEO and Co-Founder of Lendo 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.”
“The additional investment helped us create more opportunities for Lendo to finance businesses during the challenging economic climate brought about by COVID-19. At Lendo, our strategy is to provide access to low-profit rate financing to SMEs and help funders receive better returns.”
The platform provides 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.
Lendo is licensed by SAMA (Saudi Central Bank) under the Sandbox Environment Program.
The new funds will be deployed to accelerate the company’s plans to deepen its platform capabilities and expand the product offering with a more sector-focused solution-based approach.