As the top fintech company in Saudi Arabia and a supplier of integrated financial services to micro, small, and medium-sized businesses, HALA has raised $157 million in a Series B investment round, making it one of the biggest fintech Series B funding rounds in the Middle East.
“We’ve just closed a $157 million Series B funding round – one of the biggest fintech deals in the Middle East! This is a huge step forward for us, led by TPG’s The Rise Funds and Sanabil Investments, and it helps us boost our mission to support small and medium businesses across the region,” HALA announced on Monday.
These investments will expand HALA’s regional reach, bolster its position in the Saudi market, and provide more integrated financial services and lending products tailored to the expansion of freelancers and MSMES.
The company added, “With this support, we’re ready to grow even faster, expand our financial services, and help even more businesses thrive – already serving over 140,000 companies and handling $8 billion in transactions a year. This funding will also help us go beyond borders and play a big role in the region’s economic growth.”
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Investors involved in the $157 million Series B funding rounds
Sanabil Investments, a company wholly owned by the Public Investment Fund (PIF), and The Rise Fund, TPG’s multi-sector global impact investing strategy, are leading the funding round.
Other participants include QED, Raed Ventures, Impact 46, Middle East Venture Partners (MEVP), Isometry Capital, Arzan VC, BNVT Capital, Kaltaire Investments, Endeavour Catalyst, Nour Nouf Ventures, Khwarizmi Ventures, and Wamda Capital.
In addition to playing a crucial role in its home market in supporting the Saudi Vision 2030 goal to significantly increase the contribution of SMEs to GDP, this investment builds on HALA’s impressive year-over-year growth, which validates the scalability and robustness of its operating model, which is focused on sustainable development.
HALA’s services
HALA provides various integrated financial services, including corporate cards, financing, business accounts, card issuance, payment and transfer services, and point-of-sale (POS) solutions. Serving over 142,000 businesses, the company handles over $8 billion in transactions annually.
The Saudi Arabian SME sector offers HALA a sizable market opportunity given its crucial economic role. Digital payment solutions have significant growth potential because SMEs, which make up 90–99 per cent of private sector businesses, make up between 614,000 and 1.8 million.
About 4.7 million people are employed by these SMEs in essential industries like retail, manufacturing, and construction, and they are estimated to contribute 20–35 per cent of the Kingdom’s GDP, or $310–375 billion USD, annually.
From 2016 to 2021, the sector’s GDP contribution increased by 45 per cent thanks to government initiatives, efforts at digital transformation, and more funding support, which fostered an environment conducive to developing innovative payment services.
HALA expresses enthusiasm about the $157 million Series B funding
“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,” Esam Alnahdi, Co-founder and Chairman, HALA, expressed.
Maher Loubieh, Co-founder and Group CEO, HALA, stated, “We are honoured by the continued trust and support of our existing investors – distinguished local and regional business leaders and funds – whose contributions have been instrumental to HALA’s journey. At the same time, we are proud to welcome all our new partners, including TPG’s Rise Fund and Sanabil, who, by joining our journey, gave a strong testimonial of the business the team has built. As we look at our next growth phase, we believe our diverse group of prominent investors bring valuable global expertise and perspective, elevating our ambitions to execute with even greater scale and impact.”
Investors express enthusiasm
“HALA is uniquely positioned to empower micro and small businesses, a key pillar in the region’s economy, by delivering business owners and their customers a broad and growing set of payment solutions. We are excited to support the HALA team in building a clear leader in this underserved segment. Our investment 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,” Yemi Lalude, Partner, TPG and Head of Europe, Middle East and Africa, The Rise Funds added.
Furthermore, a representative from Sanabil Investments conveyed enthusiasm for leading HALA’s historic Series B funding round.
The spokesperson explained that the investment supported Sanabil’s goal of providing patient capital and strategic guidance to innovative companies, which also showed the company’s confidence in HALA’s capacity to revolutionise the financial services market for SMEs.
Sanabil also expressed enthusiasm for working with HALA and the other investors to help them achieve further success and growth.
HALA expresses gratitude to the investors, staff and merchants for their support.
It stated, “A huge thank you to our investors, dedicated employees, and the merchants we serve—your support and trust mean everything to us. Together, we’re building a brighter future for SMEs and creating real impact. The journey continues!”