Lendo, a fintech startup based in the capital of Saudi Arabia Riyadh has raised $7.2 million in a Series A round. The round of funding which Lendo reported to be equity only was led by Derayah Ventures, a Saudi Arabia based venture capital firm. The round also saw participation from Seedra Ventures, Shorooq Partners, 500 Startups, and Impact46.
Osama AlRaee and Mohammad Jawabri founded Lendo in 2019. The startup offers instant invoice financing to SMEs through its Shariah-complaint lending marketplace. The offering helps SMEs with their immediate cash requirements. Invoice financing is (although banks rarely offer such financing).
The startup offers loans starting from SAR 100,000 ($27,000) and going up to SAR 3 million ($800,000). It does this by providing a platform where SMEs can get access to investors on its marketplace through crowdlending(P2P lending). The basic requirement for Lendo is for the SME to have a Saudi business license (commercial registration), and must be in operation for at least one month.
In a statement, commenting on the occasion, he 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. Our strategy is to provide access to low-profit rate financing to SMEs and help funders receive better returns. Our alternative form of financing has proven to be faster in getting the needed cash flow and has become an essential part of the recovery strategies for many of our customers/clients. We are proud to be the preferred platform of choice for SMEs lending and borrowing in Saudi Arabia and look forward to being pioneers in the wider MENA region,” he added.
Mohammad Jawabri, the co-founder and COO of Lendo, said, “As a team of fintech experts, we combine financial expertise with advanced technology to bring our clients solutions that can turn waiting time into a valuable win-win situation for all parties involved. During the pandemic, there was a huge surge in the numbers of SMEs who turned to Lendo for financing to keep their businesses afloat. Our 25% month-on-month growth is a testimony of the hard work, dedication, and commitment of our team.”