https://arab.news/rye27
RIYADH: The Saudi Central Bank, also known as SAMA, has issued a license to Funding Souq, a debt crowdfunding platform, to operate in the Kingdom.
This new permit raises the count of companies authorized in this domain to 10, bringing the number of fintech companies permitted by the apex bank to 61.
“This decision reflects SAMA’s endeavor to support the financial sector, increase efficiency of financial transactions, and promote innovative financial solutions for financial inclusion in Saudi Arabia,” the bank said in a statement.
Funding Souq was founded in 2020 to connect investors with established small and medium enterprises who need to borrow between $20,000 and $150,000.
In January, SAMA issued a license to Thara, a debt crowdfunding company to operate in the Kingdom. This was the ninth platform to have obtained a permit in Saudi Arabia.
In November 2023, Dnaneer Financing Co. was the eighth fintech firm to be authorized by SAMA to operate in the debt-based crowdfunding solutions space in the Kingdom.
The firm is a lending platform that connects recurring revenue businesses with investors in Saudi Arabia, as they offer various investment opportunities while providing financing for companies that hold a steady stream of revenue.
In March 2022, Funding Souq raised $2.5 million in a seed round, with contributions from existing and angel investors, Forbes reported.
The latest financing stage brought the crowdfunding platform’s total funding to $2.82 million.
With the acquired fund, Funding Souq plans to expand its operation and grow its debt-investor partnership with family offices and banks to focus on Shariah-compliant financing.