Lendo Saudi Arabia Secures $690 Million Financing from J.P. Morgan
- Lendo secures $690 million in funding led by JPMorgan to support the fintech sector in Saudi Arabia.
- The funding aims to enhance Lendo’s ability to provide loans and launch innovative financial products to support the growth of small and medium-sized enterprises (SMEs).
- These financing facilities will contribute to creating new job opportunities and increasing SME financing in alignment with Saudi Vision 2030.
Lendo, the crowdfunding platform in Saudi Arabia, has announced that it is securing financing worth $690 million (equivalent to 2.6 billion Saudi Riyals) led by J.P. Morgan, one of the largest global financial institutions. This financing comes with the support of Saudi Fintech, aiming to enhance the financial technology sector and support the growth of small and medium-sized enterprises (SMEs) in the Kingdom.
Financing Details and Objectives
Founded in 2019 by Osama Al-Raee and Mohammed Jawabrah, Lendo operates as a digital platform connecting SMEs seeking funding with investors looking to achieve short-term returns. The credit facilities will be used to enhance Lendo’s lending capacity, launch innovative financial products, and expand its services to include a larger segment of SMEs across the Kingdom.
Osama Al-Raee, CEO and Co-Founder of Lendo stated: “This financing marks a significant milestone in Lendo’s journey and the Saudi fintech sector. The strong support from a global financial institution like J.P. Morgan reflects our contribution to supporting the growth and development of SMEs. It enables us to achieve our goals of providing innovative financing solutions aligned with the aspirations of Saudi Vision 2030.”
Impact of Financing on the Saudi Economy
This credit facility is expected to contribute to increasing job opportunities in the Saudi market, reflecting Lendo’s commitment to supporting economic growth and creating new jobs in line with the goals of Saudi Vision 2030. This step is part of efforts to raise the percentage of SME financing from 4% in 2018 to 20% by 2030.
Comment from J.P. Morgan
George Davis, Co-Head of Asset-Backed Securities in Northern Europe at J.P. Morgan, said: “We are pleased to collaborate with Lendo through this exceptional agreement. The SME sector, with its rapid growth and increasing strength, is vital to the local economy. This financing will support the strategic initiative to enhance the growth of SMEs in the Kingdom of Saudi Arabia.”
Lendo’s Achievements to Date
Lendo has successfully facilitated financing exceeding 667 million through more than 5,000 deals, and 33.3 million in returns for investors. The company also closed its Series B investment round worth $28 million in late 2023, led by Sanabil Investments, fully owned by the Saudi Public Investment Fund, with participation from Shorooq Partners, AB Ventures, and other investors.
Future Steps
Lendo plans to strategically utilize the new financing to enhance its funding capacity, introduce innovative Sharia-compliant financial products, and expand its services to include more SMEs across the Kingdom. In doing so, the company contributes to achieving the goals of Saudi Vision 2030, which aims to diversify the economy and support entrepreneurship.