RIYADH: The regional technology sector has witnessed a significant influx of equity, debt, and institutional capital over the past week, primarily driven by substantial funding rounds in the fintech space. This surge has enabled small and medium-sized enterprises (SMEs) to secure major financial deals across various sectors.
Major Funding Rounds in Fintech
Among the notable developments, Saudi fintech Lendo has partnered with Austria’s Quantic Financial Solutions to launch an institutional capital program worth up to $200 million. This initiative aims to provide working-capital financing to small and medium-sized businesses in Saudi Arabia, utilizing Lendo’s Shariah-compliant debt crowdfunding platform regulated by the Saudi Central Bank.
Additionally, Saudi property tech firm Rize has secured a SR187.5 million ($50.4 million) asset-backed Murabaha facility from Jadwa Investment. This funding will support residential rental contracts through its innovative rent now, pay later platform, allowing tenants to split annual rent into monthly payments while landlords receive funds upfront.
Emerging Startups and Their Innovations
Egyptian recycling startup Bekia raised $765,000 in seed funding, led by Madica, with participation from Catalyst Fund and Jambaar Capital. Founded in 2019 by Alaa Afifi, Bekia connects households with waste collectors and aims to expand its operations into other African markets.
In another significant move, Bahrain-based private-markets platform Tanami closed an undisclosed funding round backed by various regional investors, including Qatar Development Bank. Founded in 2023, Tanami plans to broaden its investor base and enhance its digital platform as it prepares to enter the Qatari market.
Fintech Growth and Future Prospects
Saudi fintech barq has raised $329.5 million in a Series A funding round, achieving a valuation of $1.85 billion. This funding positions barq as a key player in the digital payments and money transfer sector, further solidifying its status in the regional fintech landscape.
Moreover, Tarabut, a financial infrastructure company founded in Bahrain, secured $50 million in strategic financing to enhance its presence in Saudi Arabia. The company aims to develop embedded-finance infrastructure that integrates verification, credit decisioning, and financing into partners’ digital journeys.
As the fintech sector continues to evolve, these developments highlight the growing importance of innovative financial solutions in supporting SMEs and enhancing economic growth across the region. For more detailed insights, visit Arab News.
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