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Home » Companies » Lendo Secures Million Funded by PIF-Backed Sanabil Investments
Lendo Secures $28 Million Funded by PIF-Backed Sanabil Investments
Lendo Secures $28 Million Funded by PIF-Backed Sanabil Investments

Lendo, The Saudi Arabian shariah compliant crowd-funding platform, has raised $28 million from Sanabil Investments, which is owned by the Saudi Public Investment Fund.

The innovative debt-based crowd-funding platform helps companies pre-fund outstanding invoices to help them grow faster. 

Lendo hopes to expand into new markets and launch new digital Shariah-compliant products.

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Innovating Digital Lending

Image Credit Lendo

Osama Alraee, the CEO and co-founder of Lendo, expressed his enthusiasm about the funding round and future plans.

He stated, “With this funding round, we are going to expand into new markets, support new and current customers, and launch new Shariah-compliant products, all the while continuing to innovate the marketplace for digital lending.”

Lendo’s Vision

Image Credit SAMA

Established in 2019, Lendo is a Shariah-compliant debt crowdfunding platform that allows businesses in Saudi Arabia to pre-finance their outstanding invoices. 

This platform has been successful in building a community of creditworthy borrowers and advanced investors who are in search of unconventional investment opportunities.

Lendo is officially licensed by the Saudi Central Bank (SAMA) and has been growing rapidly, with its customer base in Saudi Arabia expanding threefold year-on-year. They are also looking at an IPO in the next few years.

The Funding Round

The recent injection of $28 million will be utilized to support its burgeoning customer base, pioneer more innovative financing products, and expedite its market expansion plans. 

History and Growth

Image Credit Lendo

Since its inception in December 2019, Lendo has processed over 2,500 financing transactions on its platform, providing over SAR 1 billion ($300 million) in financing to SMEs and generating SAR 140 million ($37 million) returns for investors.

Gratitude Towards Supportive Institutions

Osama Alraee also expressed gratitude towards institutions such as SAMA (Saudi Central Bank), Fintech Saudi, MCIT, Misk, and Monshaat for their unwavering support. He stressed these institutions’ crucial role in promoting financial inclusivity and fostering innovation in partnership with Lendo.

The Opportunity Ahead

Image Credit Vision 2030

The growing demand for alternative, agile, and accessible lending solutions presents a significant opportunity. Lendo is well-positioned to spearhead the movement promoting financial inclusion in Saudi Arabia and beyond. 

By fuelling SME growth, Lendo aims to contribute to realizing Saudi Arabia’s Vision 2030 economic goals.

Bridging the Financing Gap

Image Credit Lendo

The Small and Medium Enterprise financing landscape in the Middle East and North Africa (MENA) presents a substantial market opportunity. Limited financial access continues to restrict the growth of the region’s businesses. 

Lendo’s debt crowdfunding platform aims to bridge the financing gap for SMEs, aligning with the Saudi Vision 2030 to significantly expand SME lending from 4% in 2018 to 20% by 2030.

The Rise of Debt Crowdfunding

The total value of debt crowdfunding in Saudi Arabia surged from 1.4 million SAR in 2019 to SAR 771 million in 2022, marking a remarkable 430% growth, according to SAMA’s annual fintech report 2022.

Lendo’s Expansion Success

With its recent funding success, Lendo is poised to expand its operations, bring forth innovative products, and provide financial services that are more accessible, affordable, and inclusive for everyone.

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