Saudi fintech startup LDUN has secured $4.8 million in seed funding to strengthen its factoring solutions for micro, small, and medium-sized enterprises (MSMEs). The round was led by Sadu Capital, with participation from Suhail Ventures and Nomu Angel Investment.
Building SME Financing Infrastructure
Founded in 2021 by Firas Alhamdan and Faisal Bin Dukhail, LDUN operates with a license from the Saudi Central Bank (SAMA) under its regulatory sandbox. The company provides a tech-enabled factoring platform designed to streamline trade credit between suppliers and retailers.
Factoring allows SMEs to convert outstanding invoices into immediate cash flow. LDUN leverages technology to simplify this process, making access to capital faster and more transparent.
The company’s key objectives are:
- Increasing purchasing power for SMEs.
- Enhancing cash flow stability for suppliers.
- Supporting the digital transformation of financial services in Saudi Arabia and the wider region.
Why Factoring Matters
Access to working capital remains one of the most critical challenges for SMEs in the Middle East. Traditional financing processes are often slow and restrictive, leaving many businesses unable to secure timely funding. LDUN addresses this gap by offering a platform that is digital-first, Sharia-compliant, and designed for speed.
With factoring solutions, SMEs can:
- Receive payments faster to cover daily expenses.
- Avoid cash flow bottlenecks caused by delayed receivables.
- Strengthen relationships with suppliers through more reliable payments.
For suppliers, the model ensures liquidity and reduces the risk of late payments, creating a healthier supply chain ecosystem.
Investor Backing
Investors see LDUN’s platform as a strategic step in reshaping SME financing across Saudi Arabia.
- Sadu Capital emphasized LDUN’s ability to accelerate digital adoption in financial services.
- Suhail Ventures highlighted the importance of strengthening SME resilience in the face of market shifts.
- Nomu Angel Investment pointed to the growth potential of factoring solutions as Saudi Arabia’s private sector expands.
This combined support underscores confidence in LDUN’s mission to close the SME financing gap and enable broader economic participation.
Looking Ahead
With fresh funding, LDUN plans to:
- Expand its factoring offerings across new sectors.
- Scale its platform to serve a wider SME base in Saudi Arabia and the region.
- Enhance its technology to improve speed, transparency, and user experience.
As Saudi Arabia continues to prioritize SME growth under Vision 2030, LDUN is positioning itself as a key player in building financial infrastructure that supports entrepreneurship and innovation.