HALA, a fintech and embedded financial services provider for SMEs, has raised USD 157 million in a Series B investment round to support Saudi SMEs.
The funding round was led by The Rise Fund, TPG’s multi-sector global impact investing strategy, and Sanabil Investments, a wholly owned company by the Public Investment Fund (PIF), with participation from QED, Raed Ventures, Impact 46, Middle East Venture Partners (MEVP), Isometry Capital, Arzan VC, BNVT Capital, Kaltaire Investments, Endeavor Catalyst, Nour Nouf Ventures, Khwarizmi Ventures, and Wamda Capital. These funds will be used to strengthen HALA’s position in the Saudi market, offering more embedded financial services, lending products to support the growth of MSMEs and freelancers, and to expand HALA’s presence regionally.
According to the company, HALA offers embedded financial services like business accounts, card issuance, payment and transfer services, and POS solutions, as well as financing and corporate cards. The company serves over 142.000 businesses and processes more than USD 8 billion of annual transactions.
Additionally, it enables them to secure products and services more optimally from other providers, including the banks, which are beginning to lend more themselves. According to statistics, the lending market in Saudi Arabia is expected to reach USD 1862.64 billion in 2032, up from USD 200 billion in 2022.
SMEs landscape in Saudi Arabia
This investment comes at a time when Saudi Arabia focuses on SMEs as part of its Vision 2030 strategy to diversify its economy beyond petrochemicals. With around 1.8 million SMEs in the country delivering 30% of its GDP, according to the International Finance Corporation, the Government sees these businesses as central to its growth plans. The Vision 2030 initiative aims to create suitable job opportunities for Saudi Arabia’s citizens by supporting SME entrepreneurship, privatisation, and investments in new industries.
