HALA Secures Record $157M Series B to Drive Saudi SME Digital Banking Revolution

Malaz Madani

Last updated 15-09-2025

4 min

HALA closed a record $157 million Series B funding round, led by TPG's The Rise Fund.

Investors include Sanabil Investments, QED, Raed Ventures, and new players like Kaltaire Investments.

HALA plans to expand its financial services for MSMEs and freelancers in Saudi Arabia.

The SME sector in Saudi Arabia is a ripe market for modern payment solutions.

The funding validates HALA's mission to innovate for small businesses in the region.

HALA, one of Saudi Arabia’s most prominent fintech players, has just closed a jaw-dropping $157 million in fresh funding, officially making it one of the region’s largest ever Series B rounds for the sector. With The Rise Fund—backed by global investment giant TPG—and Sanabil Investments, which is tied to the Saudi Public Investment Fund, stepping in to lead, it’s fair to say HALA’s star power in the financial services space is turning heads.

From my time in the startup hustle, I know that attracting even a splash of this kind of capital is a real feather in the cap, especially in the ever-competitive MENA ecosystem. Apart from the headliners, a smorgasbord of investors piled in, like QED, Raed Ventures, Impact 46, and Middle East Venture Partners, not to mention newcomers such as Kaltaire Investments and Arzan VC, among others. This isn’t just a show of deep pockets; it’s an unmistakable vote of confidence, if you ask me.

So, what’s HALA got up its sleeve now that it’s swimming in new funds? For starters, the company is all about going deeper in the Saudi market and rolling out more tailored financial services for micro, small, and medium enterprises—MSMEs—plus freelancers. They’re eyeing regional expansion too. From business accounts and payment tools to corporate cards and financing, HALA’s offer covers quite the spectrum. Over 142,000 businesses are on their books, turning over more than $8 billion every year via their platforms.

The SME sector is absolutely massive in Saudi Arabia—something I’ve seen time and time again at Arageek, where we’re always following these tales of ambition. There are anywhere between 614,000 and 1.8 million SMEs in the Kingdom. That’s basically 90–99% of all private businesses, collectively employing 4.7 million people. The GDP contribution from these firms has shot up 45% from 2016 to 2021, with government reforms and a push towards digitisation fanning the flames for this growth. If you ask me, the opportunity for modern payment and financing solutions here isn’t just ripe—it’s bursting.

On the human side, HALA’s co-founder and chairman, Esam Alnahdi, called the investment a “turning point”, saying it’s a validation of HALA’s mission to innovate for small businesses. “Our journey is just beginning,” he said. HALA’s other co-founder and group CEO, Maher Loubieh, echoed those upbeat vibes, welcoming the mix of existing and new investors, including the high profile TPG Rise Fund and Sanabil. He reckons their global know-how and reach will let HALA scale dramaticly over the coming years.

But let’s not just take their word for it. Yemi Lalude at TPG described HALA as uniquely positioned to empower micro and small businesses in the region, underlining how vital entrepreneurs are for building the next generation economy—not just by innovating, but also by creating jobs and driving meaningful social change. On the flip side, a spokesperson from Sanabil Investments mentioned this deal mirrors their commitment to backing visionary companies, blending patient capital with a bit of strategic guidance.

Sometimes these big announcements can sound a little too glossy, but there’s something genuinely spot on about HALA’s timing. The demand for digital banking in the Kingdom is on the up, and investors clearly think HALA’s got the know-how to ride that wave. I’m not a fan of hype for hype’s sake, yet, I have to admit, this is the kind of story that really energises those of us rooting for homegrown MENA innovation. Expanding services and reshaping financial access for small businesses? That’s exactly what the region’s ecosystem hungers for, and I, for one, will be keeping a close eye on what they do next—even if making sense of all these funding rounds is sometimes a bit of a faff!

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