Lendo and Quantic Launch $200 Million Program to Fund Saudi Companies

• Saudi fintech company Lendo has partnered with Austrian Quantic Financial Solutions to launch an institutional capital program worth up to 750 million Saudi Riyals ($200 million) to finance small and medium-sized enterprises (SMEs) in the Kingdom.
• Under the agreement, Quantic will invest up to 750 million Riyals through Lendo, with the capital allocated to provide working capital financing for Saudi SMEs. The partnership was announced during the Money20/20 Middle East conference in Riyadh.
• Lendo was founded by Osama Al-Raee and Mohammed Jawabri in 2019, and it operates a Sharia-compliant crowdfunding platform licensed and regulated by the Saudi Central Bank (SAMA), connecting institutional and individual investors with SMEs seeking financing.
• The program will enable Lendo to expand its capacity to provide working capital financing and launch new financing solutions for SMEs, while Quantic will manage the deployment of its institutional capital in line with Lendo's financing strategy.
• Quantic is based in Vienna and is a member of the C-Quadrat Investment Group. It will also work on structuring Sharia-compliant investment products based on the financed assets and making them available to international investors, providing a channel for foreign institutional capital into the SME financing sector in Saudi Arabia.

Press Release:

Lendo, the leading platform for Sharia-compliant crowdfunding in Saudi Arabia regulated by the Saudi Central Bank, announced a strategic partnership with Quantic Financial Solutions GmbH during its participation in the Money20/20 Middle East events. Quantic is an asset management investment fund based in Vienna, Austria, working to bring foreign direct investment to Saudi Arabia. Under this agreement, Quantic will invest in an institutional capital program worth up to 750 million Saudi Riyals (equivalent to $200 million), allocated for working capital financing for SMEs in Saudi Arabia.

This program reflects the growing confidence of institutional capital in the crowdfunding model in the Kingdom and contributes to the development of the fintech ecosystem in line with the objectives of the Financial Sector Development Program, one of the programs of Saudi Vision 2030.

Under the partnership, Quantic relies on its expertise in managing institutional funds to oversee the disciplined deployment of its capital in accordance with Lendo's financing strategy and growth objectives. This partnership enhances Lendo's ability to meet the growing demand for working capital financing for SMEs across various regions of the Kingdom.

Lendo intends to utilize the program to expand SMEs' access to working capital financing, accelerating the platform's growth plans and supporting the launch of new financing solutions that help bridge the financing gap in the Kingdom.

Why is this partnership important for the market:

• It helps bridge the financing gap for SMEs. By combining the financing operations established through Lendo under the supervision of the Saudi Central Bank and Quantic's institutional capabilities in capital deployment, the SME sector in the Kingdom gains access to financing that was previously unavailable in the market.

• It supports a national economic priority. The program directly supports the objectives of the Financial Sector Development Program in the fields of fintech and SME financing within Saudi Vision 2030, establishing crowdfunding as a reliable pillar in the Saudi financial sector.

• It opens a sustainable channel for international capital. Quantic is working on structuring Sharia-compliant investment products from these assets for investors outside the Kingdom, establishing a replicable bridge between global foreign direct investment and SME financing in the Kingdom, not just a one-time deal.

Osama Al-Raee, CEO and co-founder of Lendo, said: "This partnership represents an important milestone in Lendo's journey and a strong affirmation of the robustness of our business model. It gives us the capability and discipline in structuring to serve a larger number of SMEs amid the growing demand in the Kingdom, bringing us one step closer to our goal of bridging the financing gap through transparent and responsible financing."

Dr. Dietrich Mattes, co-founder of Quantic Financial Solutions, said: "Lendo's strong track record, the quality of its financing operations, and its regulatory standing make it the ideal partner for a program of this size in Saudi Arabia, as it is the leading company in this field. We look forward to financing the program and deploying capital in a disciplined manner to support the growth of SMEs across various regions of the Kingdom. The Sharia-compliant investment products that Quantic creates from these assets are of interest to international investors.","summary":"Lendo partners with Quantic to launch a $200 million program for financing SMEs in Saudi Arabia, enhancing access to working capital and supporting the fintech ecosystem in line with Vision 2030."}]} }