News
Tribal Credit Raises $34.3 Million to Support SMEs in Emerging Markets
Tribal Credit, a payment fintech specially designed for small and medium-sized businesses in emerging markets, announced today closing a combined Series A and debt round of $34.3 million.
The investment was led by QED Investors and Partners for Growth (PFG). Existing investors BECO Capital, Global Ventures, OTG Ventures, and Endure Capital also took part in the round, joined by new investors Endeavor Catalyst.
As part of the investment, Tribal received $3 million from the Stellar Development Foundation, a nonprofit organization that supports the development and growth of the open-source Stellar blockchain network. Their investment will facilitate the development of Tribal’s blockchain products and integration onto the Stellar network.
The ongoing COVID-19 pandemic has accelerated many startups’ move to digital and increased the number of new businesses spending online. Despite a need to make an ever-increasing number of cross-border B2B payments digitally, many SMEs have found it even more difficult to get approved for traditional corporate cards.
Using a proprietary AI-driven approval process, Tribal Credit not only provides SMEs with virtual and physical corporate cards, but also offers a digital platform that allows founders and CFOs to give access to and manage the spend of their distributed teams.
Every year, there are 62 million Latin America SMEs transacting globally, and the LatAm market represents a $15 billion opportunity, led by Mexico—Tribal Credit’s biggest market.
“This round allows us to accelerate our growth in Mexico and help the new generation of SMEs fueling the Mexican economy break free from local financial barriers,” said Tribal Credit CEO Amr Shady.
“We have invested heavily in our product over the past year. We’re the first mover in our segment in LatAm with a diverse suite of SME products that includes corporate cards, wire payments, and treasury services. We’re incredibly excited by the future ahead of us in Mexico and beyond.”
“QED has been following payments and the lending needs of SMEs in emerging markets closely and Tribal has proven itself a leader in Latin America,” said Lauren Morton, Partner, QED Investors. “Compared with everything else we’ve seen in this market, Tribal has a differentiated and superior product that meets customers’ needs in a way that no competitor can match.
“Tribal has had strong traction in Mexico, with adoption from fast-growing startups across the country, including many companies within our own portfolio. Through the combination of a unique product and an incredibly talented team passionate about solving a real problem, it’s no surprise that Tribal has quickly become an innovative disruptor in a red-hot market.”
As a global specialty lending firm focused on the tech sector with deep experience structuring fintech warehouse lines, PFG is providing the debt facility. Managing Director Armineh Baghoomian said, “The Tribal team has identified a significant unmet need in Mexico and developed a compelling product to enhance access to financial services. We look forward to growing with Tribal as they continue to scale in Mexico and across emerging markets globally.” In addition to funding from PFG’s global fund, PFG will be co-investing from its Latin America Growth Lending Fund in partnership with IDB Invest and SVB Financial Group, the parent company of Silicon Valley Bank.
Tribal Credit COO Duane Good said, “Our Series A funding round will help us scale our business faster, accelerate our growth in Mexico, and continue our mission of financial inclusion. We are uniquely positioned to serve high-growth SMEs and startups transacting both locally and globally. We offer both locally issued Visa business cards as well as international US dollar cards. Our customers will benefit from lower fees and comprehensive merchant acceptance.”
Hundreds of customers in Mexico are using Tribal Credit’s payment solutions, including Minu, payroll advances startup; Fairplay, e-commerce financing platform; SLM, leading tech solutions company in LatAm; Ben & Frank, online optical store and one of the top e-commerce companies in the country.
As part of growth, Tribal Credit is looking to fill different positions based out of Mexico. “We’re excited to augment the current team in Mexico with more talented people across different functions,” said Duane.
The San Francisco-based company previously raised $7.8 million in a series of seed rounds, making the total raised $42.1 million. Tribal Credit also joined Visa’s Fintech Fast Track Program, adding it to an elite group of fintechs and accelerating its integration with Visa’s global payment network.
Tribal Credit beta launched in December 2019 offering corporate cards and a spend management platform for startups and SMEs in emerging markets. With demand growing for better online B2B banking experiences since the pandemic started, the company expanded its payments and financing products to include Tribal Pay, helping customers settle non-card purchases and benefit from extended payment terms.
With expertise honed at leading tech companies and financial institutions, Tribal Credit’s leadership team of serial entrepreneurs, data scientists, and fintech execs have built and scaled startups in both emerging markets and the U.S. Amr Shady, former founder of TA Telecom, a telco payments startup with operations that expanded in six emerging markets; Duane Good, former HSBC EVP and founding member of eCapital Financial and MBNA International; Mark Graves of Marqeta Inc., Silicon Valley Bank, and the Financial Industry Regulatory Authority (FINRA); Mohamed Elkasstawi, founder of ZK Capital, a blockchain research firm; Omar Kamal, formerly of Mentor Graphics, IBM, Lucent Technologies and HP; and Ehab Zaghloul, co-founder of ZK Capital.
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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