Saudi-based SME-focused fintech startup Lamaa has raised SAR19 million (about US$5 million) in a pre-Series A round.

The round was co-led by Saudi Aramco through its venture capital arm Wa’ed, and early-stage venture capital investor Raed Ventures, according to a statement.

Funding will be used for the development of Lamaa’s Trade Receivables Discounting System (TReDS) factoring platform. The platform aims to shorten the cash conversion cycle for SMEs.

“We are so honored and privileged to have attained the trust of two of the most reputable backers in the Kingdom. We intend to use the additional funding to scale Lamaa into a major regional provider of SME liquidity enabling SME growth with immediate plans for expansion into Egypt and the UAE,”

Khutale said.

Lamaa is a 2021-founded startup headquartered in Riyadh. Founded by banking and cloud consultant Sumeet Khutale, the startup provides SME financing solutions, including supply chain finance and buy now pay later.

Currently, Lamaa is in phase two of development, focusing on licensing negotiations and its Middle East expansion. These will help to include family offices and private investors in Lamaa’s invoice factoring marketplace, as they look to expand into Egypt, the UAE, and Qatar.

“For a newly established start-up that has already acquired impressive growth and secured key partnerships across the Saudi market, Lamaa presents the type of entrepreneurial business that not only empowers its own team and start-up sector, but can also promote a stronger foundation for other emerging local SMEs who use the platform for financing solutions,”

said Fahad Alidi, Managing Director at Wa’ed.

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