Saudi Fintech Lendo Secures Landmark $690 Million Deal to Supercharge SME Lending

In a move that's set to shake up Saudi Arabia's financial landscape, Lendo—the nation's trailblazing debt crowdfunding platform—has secured an eye-popping $690 million (SAR 2.6 billion) warehouse facility. The deal, led by none other than global financial titan J.P. Morgan, marks one of the most significant funding rounds in the region's fintech history.

Founded in 2019 by the dynamic duo of Osama Alraee and Mohamed Jawabri, Lendo has swiftly carved out a niche as a go-to crowdlending marketplace. The platform effortlessly bridges the gap between vetted businesses seeking much-needed financing and savvy investors eyeing short-term returns. With the Saudi Central Bank (SAMA) overseeing its operations, Lendo ensures everything runs by the book, giving both investors and businesses peace of mind.

"This is more than just a funding milestone—it's a testament to our mission of empowering SMEs across Saudi Arabia," enthused CEO and co-founder Osama Alraee. "Having the backing of a global institution like J.P. Morgan doesn't just validate our business model; it supercharges our ability to innovate and expand. We're incredibly excited about the opportunities this creates to drive growth and contribute meaningfully to the Kingdom's Vision 2030 goals."

Saudi Arabia's Vision 2030 is no small undertaking. Among its many ambitious objectives is a plan to ramp up SME lending from a mere 4% in 2018 to a robust 20% by 2030. It's a bold target, aiming to diversify the economy and foster a vibrant private sector less reliant on oil revenues.

"We're delighted to partner with Lendo on this groundbreaking transaction," said George Deves, Co-Head of Northern European Asset-Backed Securities at J.P. Morgan. "A flourishing SME sector is vital for the health and diversification of the local economy. This financing isn't just about numbers; it's about supporting a strategic initiative that has real, tangible impacts on businesses and communities throughout Saudi Arabia."

Since its inception, Lendo has been actively expanding its impact. The platform has already facilitated over 667 million SAR (2.5 billion SAR) in financing through more than 5,000 transactions. Investors have also benefited significantly, earning approximately 33.3 million SAR (125 million SAR) in returns— a testament to the platform's efficiency and appeal.

Adding to its momentum, Lendo closed a successful Series B investment round in late 2023, pulling in $28 million. The round was led by Sanabil Investments, wholly owned by Saudi Arabia's powerhouse Public Investment Fund (PIF). The infusion of capital from such a prominent entity underscores the faith investors place in Lendo's vision and potential.

This latest development isn't just a win for Lendo—it's a bullish signal for the entire Saudi fintech sector. International investors are taking note, attracted by the Kingdom's progressive regulatory environment and the vast opportunities presented by a rapidly evolving economy.

As Saudi Arabia continues to roll out its Vision 2030 initiatives, collaborations like this are expected to play a pivotal role. They're not just transactions; they're partnerships that drive innovation, support entrepreneurs, and ultimately contribute to a more diverse and resilient economic landscape.

In the words of Alraee, "We're not just financing businesses; we're fueling dreams, driving innovation, and building the future of Saudi Arabia—one SME at a time."