Lendo, a Saudi Arabia-based Shariah-compliant debt crowdfunding marketplace, has announced raising about $28 million in its Series B funding round anchored by Public Investment Fund (PIF)’s Sanabil Investments.
The round also saw participation from Shorooq Partners, AB Ventures, and other investors, according to the announcement.
Lendo is a Shariah-compliant debt crowdfunding marketplace that helps pre-finance outstanding invoices for businesses in Saudi Arabia. It is a community of creditworthy borrowers and sophisticated investors looking for alternative investments.
The platform is licensed by the Saudi Central Bank (SAMA). Lendo will use the funds to support its fast-growing customer base in Saudi Arabia which has grown 3X year-on-year, introduce more innovative financing products, and accelerate market expansion plans.
“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,” said Osama Alraee, CEO and co-founder of Lendo, who also disclosed its plans for an IPO within the next few years.
Lendo previously raised $7.2 million in a Series A round in 2021 led by Derayah Ventures with participation from other investors, bringing the fintech’s total funding to about $35.2 million.
Since the inception of Dec 2019, Lendo said it has processed more than 2,500 financing transactions on its platform, providing over $300 million in financing to SMEs and generating about $37 million in returns for investors.
Lendo’s debt crowdfunding platform aims to bridge the financing gap for SMEs, which aligns with the Saudi Vision 2030 to significantly expand SME lending from 4% in 2018 to 20% by 2030.
The total value of debt crowdfunding in Saudi Arabia surged from SAR1.4 million in 2019 to SAR771 million in 2022, marking a remarkable 430% growth, according to SAMA’s annual fintech report 2022.
“The growing demand for alternative, agile, and accessible lending solutions presents a significant opportunity. At Lendo, we are well-positioned to lead the charge in promoting financial inclusion not only in Saudi Arabia but also beyond,” said Mohamed Jawabri, COO and co-founder of Lendo.