KSA Fintech Lamaa Raises $5.5 Million for SME Financing Solution
Lamaa aims to empower these small businesses by bridge the funding gaps for SMEs struggling with credit risk ratings - a challenge that often stymies their growth.
Riyadh-based fintech Lamaa has raised one of Saudi Arabia’s largest seed rounds, securing USD 5.5 million for its SME invoice financing solutions. The fund was led by Raed Ventures and Saudi Aramco’s entrepreneurship arm Wa’ed.
Lamma leverages the power and efficiency of its Supply Chain Finance and B2B Buy Now Pay Later services to provide optimized working capital management for suppliers, and maximize the return on treasury for corporate entities. This technology will accelerate the digitalization of SMEs, increasing their contribution to 35% by 2030 in line with the kingdom’s Vision 2030 national strategy.
“Since our initial launch in March 2021, Lamaa has gathered significant traction with over 100 corporate clients in the pipeline and a projection of over $1 billion dollars worth of invoices to be soon launched in Lamaa’s marketplace,” Sumeet Khutale, founder and CEO of Lamaa, says. “In addition to supply chain finance, we will soon start offering B2B Buy Now Pay Later which would be the first of its kind offering in the region. We also plan to expand in Egypt, UAE and Qatar in the next few months.”
Sumeet Khutale, a seasoned player in the fintech realm with years of industry experience in Investment Banking Technology and Cloud Banking with leading consulting companies, including Barclays Capital and JP Morgan, launched Lamaa in early 2021 to capitalize on the MENA region’s market potential. Comprising 30% of the region’s three trillion GDP, SMEs are a lucrative venture. Lamaa aims to empower these small businesses by bridging the funding gaps for SMEs struggling with credit risk ratings, a challenge that often stymies their growth.
