Saudi Fintech Platform Lendo Secures $690 Million Facility from J.P. Morgan
In a groundbreaking move for Saudi Arabia’s fintech sector, Lendo, the country’s leading debt crowdfunding platform, has successfully secured a $690 million warehouse facility from J.P. Morgan. This significant deal not only showcases growing international confidence in Saudi Arabia’s financial ecosystem but also solidifies Lendo’s position as a key player in bridging the SME financing gap.
Transformative Moment for Lendo and Fintech Industry
Osama Alraee, CEO and co-founder of Lendo, hailed the agreement as a transformative moment for both the company and the broader fintech industry. He emphasized that this facility will greatly expand Lendo’s lending capacity, create over 18,000 new jobs, and drive economic growth in line with Vision 2030.
Shariah-Compliant Debt Crowdfunding Model
Alraee highlighted Lendo’s Shariah-compliant debt crowdfunding model, which provides a faster and more accessible financing alternative compared to traditional banks. SMEs can access a network of over 84,000 investors, enabling them to secure funding for their business needs. This approach has already facilitated SR 2.5 billion in SME financing through more than 5,000 transactions, resulting in SR 125 million in investor returns.
Addressing the SME Financing Gap
Despite SME financing in Saudi Arabia growing from SR 100 billion in 2018 to SR 250 billion today, a significant SR 500 billion funding gap still remains. Alraee highlighted the Financial Sector Development Program’s goal to increase SME lending from 4% to 20% of total bank loans by 2030, emphasizing the crucial role fintech solutions like Lendo’s will play in achieving this target.
Future Plans and Sustainability
Looking ahead, Alraee emphasized that Lendo will focus on scaling its core lending services rather than diversifying into new financial products. With key investors such as Sanabil Investments (PIF) and J.P. Morgan backing the company, Lendo’s sustainable business model ensures long-term growth and stability.
Unlocking Opportunities for SMEs
Alraee concluded by reaffirming that the deal goes beyond Lendo—it’s about unlocking opportunities for SMEs across Saudi Arabia. By offering accessible, efficient, and Shariah-compliant financing, Lendo is driving job creation, business growth, and economic diversification, shaping the future of Saudi fintech in the process.
