Saudi Arabia-Based HALA Raises US$157 Million Series B Round
The investment in HALA—which was founded by Esam Alnahdi and Maher Loubieh in 2018—has been billed as one of the largest fintech Series B rounds in the Middle East.
HALA, a Saudi Arabia-based fintech company specializing in embedded financial services for micro, small, and medium enterprises (MSMEs), has raised US$157 million in a Series B funding round.
The round was co-led by The Rise Fund, a US-based global impact investing strategy by TPG, and Sanabil Investments, a Saudi Arabia-based investment firm wholly owned by the Public Investment Fund (PIF).
They were also joined by QED Investors, an American venture capital firm focused on fintech; Raed Ventures, a Saudi Arabia-based early-stage venture capital firm; Impact 46, a Saudi investment firm specializing in private investments and venture capital; Middle East Venture Partners (MEVP), a UAE-headquartered venture capital firm investing across the region; Isometry Capital, a US-based growth investment firm; Arzan VC, a Kuwait-based venture capital firm; BNVT Capital, a US-based venture capital firm; Kaltaire Investments, a UAE-based private investment company; Endeavor Catalyst, a US-based co-investment fund supporting high-impact entrepreneurs; Nour Nouf Ventures, a Saudi Arabia-based venture capital firm backing early-stage startups; Khwarizmi Ventures, a Saudi venture capital firm focused on tech startups; and Wamda Capital, a UAE-based venture capital firm investing across the MENA region.
Founded by Esam Alnahdi and Maher Loubieh in KSA in 2018, HALA provides banking solutions for SMEs and freelancers to help them start, manage, and grow their businesses. The fresh capital is set to be directed toward strengthening HALA’s Saudi operations, expanding embedded financial services and lending products for MSMEs and freelancers, and supporting regional expansion.
Speaking to Inc. Arabia, Loubieh, co-founder and CEO of HALA, said that the new investment underlines both the scale of the market as well as his company’s strong performance. “It’s a large and stable market opportunity for investors, and we have demonstrated strong growth with strong positive unit economics," he said. "So, this is a win-win for both sides to empower the unbanked segment. Also, together, we will grow our lending proposition, as well as international expansion and merger and acquisition (M&A) activity.”
HALA has grown into a one-stop platform for SMEs, offering business accounts, card issuance, payments and transfers, point-of-sale solutions, financing, and corporate cards. Today, it serves more than 142,000 businesses and processes over US$8 billion in annual transactions. Its reach already stretches across Saudi Arabia, the UAE, and Egypt—and more markets are in sight. “We are assisting opportunities for international expansion," Loubeih said. "It is firmly in our plans to grow beyond Saudi through a combination of organic and strategic growth."
The SME sector in Saudi Arabia shows why this opportunity matters. With between 614,000 and 1.8 million SMEs making up 90–99 percent of private sector activity, the segment contributes 20–35 percent of gross domestic product (GDP)—about $310–375 billion annually—and employs 4.7 million people in industries from retail to manufacturing to construction. Between 2016 and 2021 alone, SME contribution to GDP rose by 45 percent, fueled by government reforms, digital adoption, and easier access to financing.
That momentum has created a strong appetite for modern financial services. “What’s really missing is cracking lending at scale," Loubeih explained. "These companies require working capital and several types of loans to grow their business. The current options are not always fit for purpose. We see SME lending as an emerging trend in the region, as well as expense management and cards.”
For startup founders looking to follow HALA's lead in terms of the success it has seen, Loubeih has this piece of advice to share. “Iterate, iterate, and iterate until you reach product-market-fit, then press the gas pedal on growth," he said. "Each step forward or setback is a learning opportunity to advance yourselves."
Pictured in the lead image are HALA co-founders Esam Alnahdi (L) and Maher Loubieh (R). Image courtesy HALA.
