News
Lendo Surpasses SAR 1 Billion Milestone, Revolutionizing Saudi SME Financing
Saudi Arabia fintech startup Lendo has crossed a significant milestone, facilitating more than 1 billion SAR in financing through over 2,500 transactions, all directed towards supporting Saudi Arabia’s Small and Medium Enterprises (SMEs). (press release)
Lendo is a Riyadh-based Shariah-compliant, Debt crowdfunding platform regulated by the Saudi Central Bank that helps pre-finance outstanding invoices for businesses in Saudi Arabia.
Since its inception, Saudi fintech Lendo has processed more than 2000 financing transactions on its platform since launch, providing SAR 1+ billion (USD 300 million) in financing to SMEs and generating SAR 140 million (USD 37 million) returns for investors.
Bringing together a community of creditworthy borrowers looking for short-term financing and savvy investors looking for alternative investments at high returns, Lendo’s products and solutions are designed to make business financing easier, faster, and smarter for investors and borrowers alike.
Operating under the regulatory framework of the Saudi Central Bank, Lendo operates as a Shariah-compliant debt crowdfunding platform, specializing in the pre-financing of outstanding invoices for local businesses.
Lendo has successfully curated a community of creditworthy borrowers in search of short-term financing, while simultaneously attracting savvy investors seeking high-yield alternative opportunities.
In an era where financial innovation is reshaping traditional norms, Lendo’s suite of products and solutions reflects a commitment to streamlining, expediting, and enhancing the world of business financing, offering advantages to investors and borrowers alike.
Empowering SMEs and Boosting GDP
Lendo’s financing has conservatively saved and created estimated hundreds of jobs within SMEs, providing essential stability in the job market. a testament to the platform’s profound economic influence.
Moreover, SMEs supported by Lendo experienced an impressive estimated 20% growth, underscoring the platform’s role in fostering entrepreneurship and business expansion. aligned with Vision 2030 goal of increasing 35% SME contributing to GDP.
The impact on the GDP is significant. Thriving SMEs contribute substantially to the GDP, generating revenue, increasing consumption, and amplifying economic activities. Lendo’s pivotal role in this process positions Saudi Arabia as an economic powerhouse, showcasing the potential of the Kingdom’s entrepreneurial spirit.
In essence, Lendo’s influence extends beyond financial transactions; it is a quantifiable catalyst for economic empowerment, conservatively saving jobs, boosting GDP, and nurturing the growth of Saudi SMEs.
Revolutionizing Business Financing
Lendo’s approach is revolutionizing the way businesses secure financing. By addressing the specific needs of SMEs, Lendo provides a lifeline to businesses grappling with cash flow issues.
The platform’s innovative debt crowdfunding model allows businesses to pre-finance their outstanding invoices, ensuring a steady influx of capital. This infusion of funds enables these businesses to meet operational expenses, invest in growth opportunities, and navigate the challenges posed by market dynamics.
Community-Driven Financial Solutions
At the heart of Lendo’s success is its community-driven ethos. The platform acts as a bridge between credible borrowers and investors seeking meaningful investment opportunities.
For borrowers, Lendo offers a hassle-free application process, swift approval timelines, and competitive financing terms. Investors, on the other hand, find a plethora of vetted opportunities, ensuring their investments yield substantial returns.
This symbiotic relationship fosters a sense of financial empowerment, enabling businesses to thrive and investors to grow their portfolios.
Investment Culture Shift
Lendo has played a significant role in reshaping perceptions of financial inclusion in Saudi Arabia, with over 1 billion SAR invested by individuals in small and medium-sized enterprises (SMEs).
This substantial investment amount signifies a noticeable shift in individual investment strategies, highlighting their growing interest in active participation in the financial ecosystem.
Lendo has also taken proactive steps to combat financial illiteracy by focusing on educating the community about the crucial role of investment in achieving financial stability and fostering growth.
These initiatives have encouraged greater participation from women, with women now constituting 12% of Lendo’s total investors and showing a growing presence.
Regulated and Shariah-Compliant
Lendo’s credibility is underpinned by its adherence to regulatory guidelines set forth by the Saudi Central Bank. Operating in a Shariah-compliant manner, Lendo ensures that its financing solutions align with ethical and Islamic principles. This commitment to regulatory compliance and ethical practices instills confidence in both borrowers and investors, fostering a secure and transparent financial ecosystem.
As Lendo surpasses the SAR +1 billion financing mark, it signifies more than just a numerical achievement. It represents the trust bestowed upon the platform by SMEs and investors alike.
Looking ahead, Lendo remains committed to furthering its mission of simplifying business financing. By continuously refining its offerings, embracing technological advancements, and expanding its reach, Lendo aims to empower even more SMEs in Saudi Arabia, driving economic growth and prosperity.
In a financial landscape where agility and innovation are paramount, Lendo stands as a beacon of progress. With each financing transaction, the platform reaffirms its commitment to transforming the SME sector and shaping a robust future for Saudi businesses.
Lendo has recently raised a Series B funding round, securing $28 million, led by Sanabil Investments, a PIF-owned company.
Lendo, a Saudi Arabia-based Shariah-compliant crowdlending marketplace, has signed a Memorandum of Understanding (MOU) today with J.P. Morgan to improve access to financing for small and medium-sized enterprises (SMEs) across the country.
The MOU was signed during 24 Fintech, a premier fintech event that brings together industry leaders, innovators, and investors in Riyadh.
J.P. Morgan and Lendo are working together on potential opportunities to support the SME sector in Saudi Arabia in growing and sustaining the remarkable demand in this market.
“This strategic collaboration with J.P. Morgan, a pioneer in the financial industry, marks a significant milestone for Lendo,” said Osama Alraee, CEO and co-founder of Lendo. “By combining our strengths, we’ll deliver cutting-edge financial solutions to SMEs, supporting their growth and contributing directly to the realization of Saudi Arabia’s Vision 2030.”
The SME financing landscape in MENA presents a substantial market opportunity as limited financial access continues to restrict the growth of the region’s businesses, with commercial banks hesitant to issue loans to SMEs at scale, resulting in a high percentage of declined financing requests annually.
The total SME financing gap in developing countries is estimated to be approximately $5.2 trillion, according to the International Finance Corporation (IFC).
Lendo’s debt crowdfunding platform aims to bridge the financing gap for SMEs, aligning with Saudi Vision 2030’s goal to significantly expand SME lending from 4% in 2018 to 20% by 2030.
According to the latest available report from the Saudi Central Bank (SAMA), the total value of debt crowdfunding in Saudi Arabia surged from SAR 1.4 million in 2019 to SAR 771 million in 2022, marking a remarkable growth.
Lendo raised SAR 132 million ($35.2 million) in total funding from leading investors, including the most recent Series B led by Sanabil Investments, a wholly-owned company by the Public Investment Fund (PIF).
Since its inception in December 2019, Saudi fintech Lendo has processed over 5,000 financing transactions on its platform, providing over SAR 2 billion ($600 million) in financing to SMEs and generating SAR 280 million ($74 million) in returns for investors.
TA Telecom, a prominent player in the Middle East’s tech sector, has unveiled AnteThink, an AI-driven tool designed to enhance decision-making processes for individuals and businesses alike.
With a history of influencing the tech landscape through various initiatives, including advanced mobile solutions, high-volume payment platforms, and ventures in e-commerce, fintech, and analytics, TA Telecom has carved a niche for itself. Serving a vast user base of 40 million and processing an impressive 15 billion transactions across its platforms, TA Telecom has cemented its position as a tech industry leader, with some of its ventures achieving the status of Y Combinator companies.
Established in 2000, TA Telecom has emerged as a prominent player in the technology sector. With over 40 million users and processing 15 billion transactions annually, TA Telecom has made a notable impact. Recognized for its contributions by the Financial Times and featured on Deloitte’s list of fastest-growing tech companies in EMEA, TA Telecom is known for its adaptability and forward-thinking approach in the ever-evolving global tech landscape.
Sameh Ibrahim, CEO of TA Telecom, highlights the potential of AnteThink: “AnteThink reflects our commitment to leverage technology for practical impact. It aims to provide clarity and confidence in decision-making, whether in the professional or personal sphere. AnteThink is a tool that can empower startup founders, executives, and individuals to make more informed choices, alleviating the stress and uncertainty often associated with critical decision-making.”
Mostafa Ashour, CEO of Y Combinator-backed startup NowPay, shared his perspective on AnteThink: “AnteThink transformed our strategic planning, allowing us to explore various scenarios and prepare for different outcomes. It has strengthened our decision-making process, helping us navigate the complexities of the business landscape.”
AnteThink embodies TA Telecom’s commitment to innovation, focusing on supporting the startup ecosystem. The tool is tailored to help leaders and executives navigate the complexities of business management and strategic development by providing a clear picture of potential outcomes.
Key Features of AnteThink include:
1. Second Order Mode: Offering a comprehensive analysis of broader impacts, fostering a strategic mindset for long-term success.
2. Optionality Mode: Enabling detailed evaluation and comparison of different choices to ensure decisions align with strategic objectives and values.
3. Inversion Mode: Focusing on identifying and mitigating potential risks, thereby strengthening risk management strategies.
Credit: Antethink
AnteThink’s advanced AI technology aims to assist decision-makers with insightful analytics, offering guidance through the decision-making process.
Selina Bieber, the Senior Director of Global Markets at GoDaddy, has predicted a significant increase in Egypt’s e-commerce revenue. By 2028, it could reach $9.88 billion.
Godaddy is forming strategic partnerships and launching initiatives to help local entrepreneurs. These efforts align with Egypt’s digital transformation goals and its Vision 2030.
In an interview with the Arabic financial news “Amwal Al Ghad,” Bieber spoke about GoDaddy’s plans and how they match Egypt’s 2023 strategy. She highlighted the company’s aim to provide effective, easy-to-use digital tools and services. By 2024, GoDaddy wants to serve more customers in Egypt by making its digital tools more widespread.
The company is working closely with the Egyptian government, especially the Ministry of Planning. They are offering training programs to improve the digital skills of startups and existing businesses. GoDaddy’s services in Egypt include domain registration, web hosting, e-commerce solutions, and digital marketing tools.
Recent surveys support Bieber’s positive outlook for e-commerce in Egypt. They show a clear trend towards digital strategies among small businesses. Many are realizing the importance of having an online presence for their growth and success.
As GoDaddy continues its partnerships and supports government digital initiatives, its influence on Egypt’s digital landscape is growing. The company is committed to sustainability and reducing its carbon footprint. It aims not just for business growth but also to contribute to a sustainable and thriving digital economy in Egypt.
The 2028 projection indicates a vast potential for e-commerce, with GoDaddy playing a key role in this digital evolution.
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