Saudi fintech HALA has raised $157 million in a Series B round, marking one of the largest fintech investments of its kind in the Middle East. The round was led by The Rise Fund, TPG’s global impact investing arm, and Sanabil Investments, a subsidiary of the Public Investment Fund (PIF).
Other participants included QED Investors, Raed Ventures, Impact 46, MEVP, Isometry Capital, Arzan VC, BNVT Capital, Kaltaire Investments, Endeavor Catalyst, Nour Nouf Ventures, Khwarizmi Ventures, and Wamda Capital.
Strengthening Saudi Arabia’s SME Ecosystem
Founded in 2018 by Esam Alnahdi and Maher Loubieh, HALA provides digital banking and embedded financial solutions for micro, small, and medium enterprises (MSMEs) as well as freelancers. Its services help entrepreneurs start, run, and grow businesses with greater efficiency.
The fresh capital will be used to:
- Consolidate HALA’s market leadership in Saudi Arabia.
- Expand lending and embedded finance solutions.
- Support regional expansion into new markets.
This growth aligns with Saudi Vision 2030, which aims to increase SMEs’ contribution to GDP and diversify the national economy.
A Growing Market Opportunity
SMEs form the backbone of Saudi Arabia’s private sector:
- Between 614,000 and 1.8 million SMEs, representing 90–99% of private businesses.
- Contribute 20–35% of GDP, worth an estimated $310–375 billion annually.
- Employ 4.7 million people across retail, manufacturing, and construction.
- From 2016 to 2021, SME GDP contribution grew 45%, fueled by government reforms and digital adoption.
This presents a strong growth opportunity for HALA, particularly in digital payments and financing solutions.
HALA’s Expanding Offerings
Today, HALA serves over 142,000 businesses and processes more than $8 billion in annual transactions. Its services include:
- Business accounts and corporate cards.
- Card issuance, payments, and transfers.
- Point-of-sale (POS) solutions.
- SME financing and embedded services.
This integrated approach positions HALA as a comprehensive financial partner for entrepreneurs.
Investor Confidence and Strategic Alignment
HALA’s latest raise reflects growing trust in its model and long-term vision.
- Esam Alnahdi, Co-founder & Chairman, called the round a “turning point” that validates HALA’s mission to reshape SME banking.
- Maher Loubieh, Co-founder & Group CEO, highlighted the global expertise of new and existing investors as critical to scaling impact.
- TPG’s Rise Fund emphasized HALA’s unique role in empowering small businesses, a key driver of economic diversification.
- Sanabil Investments noted the round underscores its mission to back visionary companies shaping the future of financial services.
Looking Ahead
HALA’s inclusion in the Saudi Unicorns Programme last year signaled its status as one of the Kingdom’s most promising scale-ups. With this new capital, the company is set to deepen its national footprint while pursuing regional growth.
HALA’s ambition is clear: to become the leading embedded finance platform in the Middle East, empowering SMEs and freelancers while contributing to a more inclusive and diversified economy.