Lamaa, a Riyadh-based fintech start-up which provides invoice financing solutions for small and medium sized enterprises (SMEs), has announced it has secured one of the largest seed funding rounds in Saudi Arabia.
The fast-growing fintech has raised $5.5 million in its seed round, which has been co-led by Raed Ventures and Saudi Aramco’s entrepreneurship arm Wa’ed.
Lamaa provides financing solutions such as supply chain finance and B2B buy now pay later plans for SMEs in line with Vision 2030 to enable and digitalise SMEs and raise their contribution to 35 percent of GDP by 2030.
“Since our initial launch in March, Lamaa has grown dramatically, with over 100 corporate clients in the pipeline and a projection of over $1 billion dollars’ worth of invoices to be soon launched in its marketplace,” said Sumeet Khutale, founder and CEO of Lamaa.
He added: “In addition to supply chain finance, we will soon start offering B2B Buy Now Pay Later plans, which would be the first offering of its kind in the region. We also plan to expand our company into Egypt, UAE and Qatar in the next few months.”
Lamaa was established by Khutale, who has recently relocated from London to Riyadh. He said Lamaa seeks to address available funding gaps for SMEs whose size present a challenge in obtaining credit risk ratings, having a direct impact on their cashflow.
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