KSA's Lendo Bags US$690 Million Facility From J.P. Morgan
The funds will increase the Shariah-compliant debt crowdfunding platform's capacity to finance SMEs and introduce new financial products.
KSA-based Shariah-compliant debt crowdfunding platform Lendo has secured a US$690 million (SAR 2.6 billion) warehouse facility led by J.P. Morgan to expand its lending operations.
The facility will increase Lendo’s capacity to finance small and medium-sized enterprises (SMEs), introduce new financial products, and strengthen its presence in Saudi Arabia. This aligns with Saudi Vision 2030’s target of increasing SME lending from 4 percent in 2018 to 20 percent by 2030.
Founded by Osama Alraee and Mohamed Jawabri in 2019, Lendo operates as a crowd-lending marketplace connecting businesses with investors seeking short-term returns. Since its launch, the company has facilitated over $667 million in financing through more than 5,000 transactions, generating $33.3 million in returns for investors.
Lendo has secured two investment rounds so far. In 2023, Sanabil Investments, a fully owned subsidiary of the Public Investment Fund (PIF), spearheaded a SAR 105 million ($27.99 million) Series B funding round for Lendo.
The latest deal, which was supported by Fintech Saudi, reflects international confidence in Saudi Arabia’s fintech sector and regulatory framework.
In a statement, Alraee, co-founder and CEO of Lendo, said, "This landmark facility represents a transformative moment for Lendo and the Saudi fintech ecosystem. The strong backing from global financial institutions such as J.P. Morgan validates our innovative approach to SME financing and positions us to expand our impact in the Saudi market significantly. This facility will accelerate our mission of boosting SME growth while contributing to the Kingdom's Vision 2030 goals.”
George Deves, co-head of Northern European ABS at J.P. Morgan, said, “We are pleased to collaborate with Lendo on this landmark transaction. A strong and fast-growing SME sector is vital for the local economy, and this financing will help support the strategic initiative to boost SME lending in Saudi Arabia.”
Pictured on image: representatives from Lendo and J.P. Morgan. Image courtesy Lendo.
