Lendo Bags $28 Million in Series B Funding Round
This Series B funding follows Lendo's previous successful fundraising rounds, including a SAR 27 million ($7.2 million) series A round.
Sanabil Investments, a fully-owned subsidiary of the Public Investment Fund (PIF), has spearheaded a SAR 105 million ($28 million) Series B funding round for Lendo, a shariah-compliant debt crowdfunding platform located in Saudi Arabia, as disclosed in an official company statement.
Lendo operates as a Shariah-compliant debt crowdfunding platform, supporting Saudi Arabian businesses in pre-financing their outstanding receivables while adhering to Islamic financial principles.
The injected capital will serve the dual purpose of bolstering Lendo's growing customer base in Saudi Arabia, which has witnessed a threefold increase year over year and facilitating the introduction of creative financing options.
Additionally, the funds will expedite the company's strategic plans for market expansion.
Lendo's platform, boasting a network of creditworthy borrowers and investors seeking alternative investment opportunities, has been granted a license by the Saudi Central Bank (SAMA).
This Series B funding follows Lendo's previous successful fundraising rounds, including a SAR 27 million ($7.2 million) Series A round led by Derayah Ventures, with participation from Seedra Ventures and other investors.
Since its launch in December 2019, Lendo has facilitated over 2,500 financing transactions, injecting over SAR 1 billion ($300 million) in funding to small and medium-sized enterprises (SMEs). This has resulted in significant returns for investors, totaling SAR 140 million ($37 million).
The surge in the total value of debt crowdfunding in Saudi Arabia indicates the sector's rapid growth, as highlighted in SAMA’s annual fintech report 2022. The figures reveal a remarkable 430% increase, soaring from SAR 1.4 million in 2019 to SAR 771 million in 2022.