Lendo, a Riyadh based fintech company, announced on 14th March 2021 that it has US $ 7.2 million in its Series A round. The round was led by Derayah Ventures along with participation from Shorooq Partners, 500 startups, Impact46 and Seedra Ventures.
Investors: Derayah Ventures is a Riyadh based venture capital firm that was established in 2019. It invests, as it mentions, in high-growth tech startups in the MENA (Middle East and North Africa) region.
Currently having a fund size of US $ 26.67 million, it predominantly invests in post-seed to Series A funding rounds of promising startups.
Purpose of the funds: With the new round of investment, Lendo is planning on expanding more in Saudi Arabia by tapping into the markets of Jeddah and the Eastern region before launching in other parts.
About Lendo: Founded in 2019 by Osama AlRaee and Mohammed Jawabri, Lendo is a fintech platform that enables organisations to obtain finance from interested investors. Aimed particularly towards SMEs, Lendo connects investors and organisations in need of debt finance/ invoice finance.
Invoice financing is basically the process of obtaining short-term loans from banks based on your receivables. But there are hardly any banks that support SMEs, or any other businesses for that matter, in the region. Lendo seeks to provide sufficient finance to SMEs, enabling them to prevent cash flow problems.
If an organisation needs finance for its outstanding bills, all it has to do is register on Lendo and request for funds. Lendo will automatically send notifications when the request is accepted by an investor and disburse the amounts, following due procedures, once it is received.
If you are an investor, again all you have to do is register on Lendo and search for the right investment opportunities based on expected returns and risk rate.
Lendo, which operates completely in compliance with Sharia Law, offers finance ranging from US $ 27,000 to 800,000. Similarly, any Saudi citizen or resident who is above the age of 18 years and has a valid ID and bank account can invest on the platform starting from an investment of US $ 270.
What the founders have to say:
“We are proud to be backed by leading investors who have excellent knowledge and experience in the most rapidly maturing MENA entrepreneurial ecosystem. Aside from the financial support and expert advice from the pioneers in the market, their trust in our business model will help us achieve both our short term and long-term goals and scale our business to the next level.”—Osama AlRaee, co-founder and CEO of Lendo.
“As a team of fintech experts, we combine financial expertise with advanced technology to bring our clients solutions that can turn waiting time into a valuable win-win situation for all parties involved. During the pandemic, there was a huge surge in the numbers of SMEs who turned to Lendo for financing to keep their businesses afloat. Our 25% month-on-month growth is a testimony of the hard work, dedication, and commitment of our team.”—Mahommed Jawabri, co-founder and COO of Lendo.
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