HALA, a Saudi Arabian fintech and provider of embedded financial services for MSMEs, has raised US$157 million in a Series B funding round, one of the largest Series B rounds in the Middle East fintech sector.
The round was led by The Rise Fund, TPG’s multi-sector global impact investing strategy, and Sanabil Investments, a wholly owned entity of the Public Investment Fund, with participation from QED, Raed Ventures, Impact 46, Middle East Venture Partners, Isometry Capital, Arzan VC, BNVT Capital, Kaltaire Investments, Endeavor Catalyst, Nour Nouf Ventures, Khwarizmi Ventures, and Wamda Capital.
Funds will strengthen HALA’s position in Saudi Arabia, expand embedded financial services and lending products for MSMEs and freelancers, and support regional growth.
HALA offers business accounts, card issuance, payment and transfer services, POS solutions, financing and corporate cards.
The company serves over 142,000 businesses and processes more than US$8 billion in annual transactions.
The SME sector in Saudi Arabia is a major market, with an estimated 614,000 to 1.8 million SMEs accounting for 90 to 99 percent of private sector businesses.
They contribute 20 to 35% of GDP, roughly US$310 to 375 billion annually, and employ around 4.7 million people in sectors including retail, manufacturing and construction.
Between 2016 and 2021, SME GDP contribution rose 45 percent, driven by government initiatives, digital transformation and increased financing.
Esam Alnahdi, Co-founder and Chairman of HALA, said:
“This landmark investment is a turning point for HALA, reflecting our relentless pursuit of innovation and excellence in serving small businesses. We are honoured that our new investors recognise the potential of our vision and the impact we aspire to make in the MSME landscape. Our journey is just beginning, and this support fuels our drive to create meaningful change.”
Featured image credit: HALA
