Lendo, a Saudi debt crowdfunding platform, has secured a SAR2.6 billion ($690 million) facility to fund more small and medium-sized enterprises (SMEs) in the kingdom.
The facility, led by J.P. Morgan, will expand its lending capacity, introduce new innovative products, and expand SME coverage in the kingdom, says the company.
This aligns with Vision 2030’s goal to increase SME lending from 4 percent in 2018 to 20 percent by 2030.
“This facility will accelerate our mission of boosting SME growth while contributing to the Vision 2030 goals,” said Osama Alraee, CEO and co-founder of Lendo.
He said that the facility is expected to create new jobs in the kingdom.
A strong and fast-growing SME sector is vital for the local economy, said George Deves, co-head of northern European ABS at J.P. Morgan, adding that this financing will help support the strategic initiative to boost SME lending in Saudi Arabia.
Lendo has raised two investment rounds so far, including a $28 million Series B round led by Sanabil Investments, a subsidiary of the Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund.
Lendo has raised two investment rounds so far, with the last $28 million Series B round led by Sanabil Investments, a wholly owned subsidiary of PIF.
The startup connects qualified businesses seeking financing with investors seeking short-term returns. It has facilitated more than SAR2.5 billion in funding through more than 5,000 transactions, generating SAR125 million in returns for investors.
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