Saudi fintech company HALA has raised $157 million in one of the largest Series B rounds in the Middle East, drawing strong backing from global and regional investors.
The funding round was co-led by TPG’s Rise Fund, its first investment in the Middle East and Saudi Arabia, and Sanabil Investments, a subsidiary of the Public Investment Fund (PIF).
Other participants include 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, which provides embedded financial services to micro, small and medium enterprises (MSMEs), said the fresh capital will help it strengthen its Saudi market presence, introduce lending products, and expand regionally.
The company already serves more than 142,000 businesses and processes over $8 billion in transactions annually.
The SME sector represents a key growth area for Saudi Arabia. With as many as 1.8 million SMEs contributing 20–35% of GDP, equivalent to $310–375 billion USD annually, the demand for digital financial solutions is only expected to rise.
SMEs also employ about 4.7 million people and have grown their GDP contribution by 45% between 2016 and 2021, supported by government initiatives and the wider digital transformation push under Vision 2030.
HALA’s Co-founder and Chairman, Esam Alnahdi, described the investment as a milestone. “This landmark investment is a turning point for HALA, reflecting on our relentless pursuit of innovation and excellence in serving small businesses.
“We are honored 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.”
Group CEO and Co-founder, Maher Loubieh, stressed the role of both long-standing and new investors: “We are honored 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, gave a strong testimonial of 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 bring valuable global expertise and perspective which will elevate our ambitions to execute with even greater scale and impact.”
The Rise Fund said the deal highlights the strength of the market and HALA’s model. 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 though innovation but by creating jobs, expanding access, and delivering meaningful social impact.”
Sanabil Investments also underlined its confidence in the company, stating: “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.”
With this financing secured, HALA is ready to scale its impact across and beyond the Middle East.
