Saudi Fintech LDUN Secures $4.8M to Boost SME Factoring Solutions

Malaz Madani

Last updated 17-09-2025

3 min

Saudi fintech LDUN secured $4,8 million in seed funding to expand its factoring services.

The funding round was led by Sadu Capital, with Suhail Ventures also participating.

LDUN offers solutions to improve cash flow for micro, small, and medium-sized enterprises.

Factoring solutions could aid Saudi firms facing financing challenges from traditional banks.

The investment supports LDUN's expansion and helps modernise trade credit in the region.

Saudi fintech LDUN has bagged $4.8 million in seed funding, a decent sum that should give the young startup some breathing room to push its factoring services further across the Kingdom. The round was led by Sadu Capital, joined by Suhail Ventures and Nomu Angel Investment, showing that investor appetite for financial services targeting small businesses hasn’t cooled just yet.

Launched in 2021 by Firas Alhamdan and Faisal Bin Dukhail, LDUN is licensed by the Saudi Central Bank through its regulatory sandbox. What they actually do is fairly straightforward, though often overlooked: they provide factoring solutions that let micro, small and medium-sized businesses unlock cash tied up in invoices. For suppliers, that means better cash flow. For retailers, extra credit to stock up on goods. And for the whole system, a faster push towards digital financial services.

I reckon this is spot on for a country like Saudi Arabia, where small firms often struggle to secure reasonable financing from traditional banks. Factoring might not sound flashy, but it could well be a lifeline for businesses caught between long payment terms and rising costs. On the flip side, managing risk in this segment is always a bit of a faff, so tech-driven models will need to prove they can handle late payments and credit defaults.

At Arageek, we’ve seen plenty of founders talk about cash crunches as their number one headache. I still remember a young café owner from Jeddah who told us he nearly shut down because suppliers demanded cash upfront but customers often paid late. Stories like that remind you why solutions such as LDUN’s matter—they’re not just fintech jargon, they’re tools that can keep everyday entrepreneurs afloat.

The company’s fresh capital should allow it to widen its client base and refine its platform, which aims to make trade credit less of a gamble. And believe it or not, this type of financing is one of the oldest tricks in global trade, just finally getting a digital makeover in the region. Investors seem chuffed to bits to back that vision, and with Saudi Arabia pushing for a more diverse economy, the timing couldn’t be better.

It’s still early days, and whether LDUN can grow beyond the sandbox without getting tangled in red tape remains to be seen. But if they can nail execution, factoring could shift from being a dusty finance term to a very real growth lever for SMEs. And that, in the wider MENA startup scene, would definately be a welcome change.

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