Forus Cashes In US$60 Million Debt Facility From Fasanara

Saudi fintech lender Forus has secured a US$60 million securitization debt facility from London-based investment manager Fasanara Capital Ltd.

The funding will help Forus enhance its operations as a provider of debt financing for small and medium-sized enterprises (SMEs) in Saudi Arabia. This debt facility from Fasanara is also expected to allow Forus to extend more than $150 million in loans to Saudi SMEs. 

Founded by Nosaibah Alrajhi in 2019, Forus began lending in 2020 after receiving one of the first debt crowdfunding licenses issued by the Saudi Arabian Monetary Authority (SAMA). To date, it has provided over $390 million in working capital to more than 400 SMEs. 

With over 1.5 million active SMEs in Saudi Arabia, which make up 99.5 percent of all companies and employ over 6.5 million people, Forus’ goals align with Saudi Vision 2030, which seeks to increase SMEs’ contribution to the kingdom’s gross domestic product (GDP) from 20 percent to 35 percent by 2030. 

The company uses its technology infrastructure to underwrite and process working capital loans, ensuring that SMEs have access to the funds they need to grow. Since its launch, the platform has attracted over 40,000 registered investors and 3,500 SMEs, creating a network for capital allocation and financial inclusion. 

Established in 2011, Fasanara Capital, which manages $4.5 billion in assets, has funded over $80 billion in fintech lending globally. Its focus on technology-driven, uncorrelated returns has made it a key player in the fintech sector.  

“At Forus, we are deeply committed to empowering Saudi SMEs by addressing their funding challenges through innovative, tech-driven solutions. Securing this $60 million facility from Fasanara is a significant milestone in our journey to become a leading non-bank lender to SMEs in the Kingdom. This partnership reflects our shared vision of fostering economic growth and aligns with Saudi Vision 2030’s goal of enhancing SMEs’ contributions to GDP. By leveraging this facility, we aim to provide rapid, reliable, and accessible working capital to even more SMEs, ensuring they have the resources they need to thrive and scale in today’s dynamic market,” Alrajhi, founder and CEO of Forus, said in a statement. 

“We are excited to have the chance to support the Saudi SME ecosystem through this funding partnership with Forus, a leading fintech SME lender in the Kingdom. As a firm, Fasanara is committed to supporting SMEs globally and is proud to have funded more than $80 billion over the last 14 years to local lenders across 60+ countries, leveraging a tech-driven approach to risk management and monitoring. Forus’ tech-enabled approach to SME lending aligns with our strategy. We are confident that our partnership with Forus will enable them to effectively scale their portfolio to provide much-needed working capital to the SMEs which are the future of the Saudi economy,” Francesco Filia, founder and CEO of Fasanara Capital, stated. 

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