HALA, a top fintech company in Saudi Arabia that provides financial services to small and medium businesses, has raised $157 million in its Series B funding round. This makes it one of the biggest Series B funding rounds for a fintech company in the Middle East.
The funding round was led by The Rise Fund, TPG’s global impact investing strategy, along with Sanabil Investments, a company fully owned by the Public Investment Fund (PIF). Other investors included QED, Raed Ventures, Impact 46, MEVP, Isometry Capital, Arzan VC, BNVT Capital, Kaltaire Investments, Endeavor Catalyst, Nour Nouf Ventures, Khwarizmi Ventures, and Wamda Capital.
HALA plans to use these funds to strengthen its presence in the Saudi market by offering more financial services and lending products to support small businesses, MSMEs, and freelancers. The company also aims to expand its operations across the region.
This investment comes after HALA’s strong year-on-year growth, showing that its business model is both scalable and sustainable. The company is also playing an important role in supporting Saudi Vision 2030, which aims to increase the contribution of small and medium enterprises (SMEs) to the country’s economy.
HALA provides a wide range of financial services, including business accounts, card issuance, payment and transfer solutions, POS systems, financing, and corporate cards. Today, it serves more than 142,000 businesses and processes over $8 billion worth of transactions every year.
The SME sector in Saudi Arabia is a huge opportunity for HALA because it plays a major role in the country’s economy. There are around 614,000 to 1.8 million SMEs, making up about 90–99% of all private sector businesses. These SMEs contribute about 20–35% of Saudi Arabia’s GDP, which is around $310–375 billion USD every year, and they provide jobs to about 4.7 million people in industries like retail, manufacturing, and construction.
From 2016 to 2021, the contribution of SMEs to GDP grew by 45%. This growth has been supported by government initiatives, digital transformation, and more financing options, making it the perfect time for innovative digital payment services to grow in the market.
Esam Alnahdi Co-founder and Chairman, HALA stated, “This landmark investment is a turning point for HALA, reflecting on our relentless pursuit of innovation and excellence in serving small businesses. We are honoured that our new investors recognise the potential of our vision and the impact we aspire to make in the MSME landscape. Our journey is just beginning, and this support fuels our drive to create meaningful change.”
Maher Loubieh, Co-founder and Group CEO, HALA continued, “We are honoured by the continued trust and support of our existing investors – distinguished local and regional business leaders and funds – whose contributions have been instrumental to HALA’s journey so far. At the same time, we are proud to welcome all our new partners, including TPG’s Rise Fund and Sanabil, who, by joining our journey, have given a strong testimonial to the business that the team has built. As we look at the next phase of our growth, we believe that our diverse group of prominent investors brings valuable global expertise and perspective, which will elevate our ambitions to execute with even greater scale and impact.”
Yemi Lalude, Partner at TPG and Head of Europe, Middle East and Africa for The Rise Funds, commented, “HALA is uniquely positioned to empower micro and small businesses, a key pillar in the region’s economy, by delivering business owners and their customers a broad and growing set of payment solutions. We are excited to support the HALA team in building a clear leader in this underserved segment. Our investment underscores our belief in the growth potential of this market, the rising demand for robust digital banking solutions, and the critical role entrepreneurs play in shaping the next generation economy not just through innovation but also by creating jobs, expanding access, and delivering meaningful social impact.”
A spokesperson for Sanabil Investments added, “We are excited to lead this landmark Series B funding round for HALA. This investment underscores our belief in HALA’s potential to reshape the future of financial services for SMEs and aligns with Sanabil’s mission to support visionary companies with patient capital and strategic guidance. We look forward to partnering with HALA and the other investors in supporting their continued success and expansion.”
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