Riyadh-based FinTech Lamaa raises $5.5M SEED round

Riyadh-based FinTech Lamaa raises $5.5M SEED round

Source: Press Release
Posted 1 year ago - Dec 5, 2021, 6:54 AM
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Riyadh-based FinTech startup and financial solutions provider Lamaa has successfully raised $5.5M in its latest funding round. The SEED round was led by Raed Ventures and Saudi Aramco’s entrepreneurship arm Wa’ed. 

Launched in 2021, Lamaa provides financing solutions such as Supply Chain Finance & B2B Buy Now Pay Later for SMEs with the aim to create more efficient working capital management for suppliers and maximizing return on treasury for corporate, in line with Vision 2030 to enable and digitalize SMEs and raise their contribution to 35 percent of GDP by 2030.

As recorded in our Q3 2021 EVM FinTech Venture Investment Report MENA-based FinTech startups raised more than double the amount of capital by Q3 2021 than full year 2020. A 10-deal dip in overall transactions garnering a 100% YoY growth in funding meant funding rounds backing FinTech in MENA have been observing larger ticket sizes. By Q3 2021 the average round size of an Early-Stage FinTech round increased to $1M while the average Series A round reached $13.4M. More remarkably, signs of maturity are reflected in the industry where a sharp 40% decrease in Early-Stage (< $500K) deal share was observed by the third quarter of the year, marked by an impressive 26% increase in later-stage deals ($500K- $3M). Since October, we have been observing ample Investor openness for futuristic technologies across both sectors, where funding rounds in Crypto were closed by CoinMENA and BitOasis, investments in open banking were highlighted in Tarabut Gateway’s $12M Pre-Series A and FinTech Galaxy's $2M SEED, and investment in open trading platforms like UAE-based Sarwa and most recently Raseed. 


 



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Established by Sumeet Khutale, who has recently relocated from London to Riyadh with extensive experience in Investment Banking Technology and Cloud banking with Global consulting companies such as Barclays Capital and JP Morgan, Lamaa seeks to address available funding gaps for SMEs whose size presents a challenge in obtaining credit risk ratings, having a direct impact on their cashflow. “Lamaa has gathered significant traction with over 100 corporate clients in the pipeline and a projection of over $1 billion dollars worth of invoices to be soon launched in Lamaa’s marketplace,” Sumeet Khutale, founder and CEO of Lamaa highlighted. “In addition to supply chain finance, we will soon start offering B2B Buy Now Pay Later which would be the first of its kind offering in the region. We also plan to expand in Egypt, UAE, and Qatar in the next few months.”

 

Lamaa is well-positioned in its SME market, which is set to generate 30% of a $3 Trillion GDP in the region, where $700 Bn of Saudi’s current GDP is attributed to SMEs.  The Riyadh-based FinTech will be able to further develop its solutions and expand on both its market and offerings capitalizing on their newly acquired funds. Founding partner at Raed Ventures Omar Almajdouie concluded "What excites us about Lamaa is that it’s a great platform to empower SMEs in Saudi Arabia, and it's managed by a well-experienced team led by Sumeet. For Lamaa, creating tremendous value from already-available cash will generate a win-win scenario in almost every transaction."


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Riyadh-based FinTech Lamaa raises $5.5M SEED round