Saudi Arabia-based digital lending platform Tameed has successfully closed a Series A funding round, raising $15 million. The funding, led by Alromaih Investments, underlines the growing demand for Tameed’s innovative shariah-compliant digital lending products, particularly in the government purchase order financing space for SMEs in Saudi Arabia. The funds will be instrumental in supporting the startup’s business growth and expanding its range of digital lending offerings.
Shariah-Compliant Financing for SMEs
Tameed, founded in 2019, has been at the forefront of providing Shariah-compliant financing options for small and medium-sized enterprises (SMEs) involved in government contract purchases. With a license from the Saudi Central Bank, the platform has already facilitated funding exceeding $106.6 million and boasts a mobile app with 50,000 downloads.
The digital lending platform recently introduced an auto-invest product designed to cater to busy investors. This feature enables investors to engage in short-term funding opportunities based on preconfigured investment preferences. Tameed’s commitment to innovation extends to the introduction of performance bond financing for projects, broadening the spectrum of SMEs that can effectively participate in government contracts.
Growth and Client Trust
Tameed has achieved an impressive 400% growth rate, underscoring the platform’s success in meeting the financing needs of SMEs in the Saudi market. The startup’s clientele values Tameed for its transparent pricing, swift loan processing, and a fully digitalized process. Its services are tailored to support SMEs in fulfilling purchase order commitments, offering products that align with the unique requirements of these businesses.
The funding round, led by Alromaih Investments, reflects the broader economic vision in Saudi Arabia, particularly the ambitious Vision 2030 programs and projects. Tameed aims to continue its growth trajectory and expand its investment and funding opportunities to meet the evolving needs of SMEs for financing. The demand for funding gaps created by Vision 2030 initiatives, estimated to reach $80 billion by 2030, further underscores the strategic importance of Tameed’s role in the financial landscape.
Omar Alromaih, CEO of Investments at Alromaih Group, expressed optimism about Tameed’s growth, emphasizing the potential for the platform to diversify investment tools and mitigate risks through acquisitions, transactions, and investment rounds in the FinTech sector, aligning with the Kingdom’s Vision 2030.
Tameed’s successful Series A funding round, led by Alromaih Investments, positions the digital lending platform for significant expansion in Saudi Arabia. With a focus on shariah-compliant financing, innovative product offerings, and a commitment to supporting SMEs, Tameed is poised to play a pivotal role in shaping the financial landscape in alignment with the Kingdom’s ambitious economic vision.