A leading fintech and provider of embedded financial services in Saudi Arabia, HALA, has raised about $157 million in a Series B investment round.
This came after an impressive year-on-year growth that validates the robustness and scalability of its operating model, which is geared toward sustainable growth as well as playing a key role in its home market in supporting the Saudi Vision 2030 goal to significantly enhance the contribution of SMEs to GDP.
HALA services Micro, Small and Medium Enterprises (MSMEs) in the Middle East. The firm has rapidly scaled to serve over 142,000 businesses and now processes more than $8 billion of annual transactions, cementing its position as the region’s MSME focused fintech leader.
Part of the $157 million would be used to sustain HALA’s leadership position in the market, launch new ventures, including lending products, and expand beyond borders.
The major providers of the funds were TPG through The Rise Fund, Sanabil Investments, 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.
“This landmark investment is a turning point for HALA, reflecting on our relentless pursuit of innovation and excellence in serving small businesses.
“We are honoured that our new investors recognize the potential of our vision and the impact we aspire to make in the MSME landscape,” the co-founder of HALA, Esam Alnahdi, stated.
Also commenting, the chief executive of the company, Maher Loubieh, said, “As we look at the next phase of our growth, we believe that our diverse group of prominent investors bring valuable global expertise and perspective which will elevate our ambitions to execute with even greater scale and impact.”
A partners at TPG, Yemi Lalude, said, “Our investment [in HALA] underscores our belief in the growth potential of this market, the rising demand for robust digital banking solutions, and the critical role entrepreneurs play in shaping the next generation economy, not just though innovation but by creating jobs, expanding access, and delivering meaningful social impact.”
A spokesperson for Sanabil Investments, in a statement made available to Business Post, said, “This investment underscores our belief in HALA’s potential to reshape the future of financial services for SMEs and aligns with Sanabil’s mission to support visionary companies with patient capital and strategic guidance.”
HALA offers a comprehensive embedded financial services offering, ranging from business accounts, card issuance, payment and transfer services, and POS solutions to financing and corporate cards.
With approximately 614,000 to 1.8 million SMEs, which account for about 90–99 per cent of private sector businesses, the growth potential for digital payment solutions is substantial.
These SMEs contribute an estimated 20–35 per cent of the Kingdom’s GDP, roughly $310–375 billion annually, and employ around 4.7 million people across key sectors like retail, manufacturing, and construction.
The sector has experienced a 45 per cent increase in GDP contribution from 2016 to 2021, driven by government initiatives, digital transformation efforts, and increased financing support, creating a fertile environment for innovative payment services.