- HALA raised $157 million in a Series B round to support micro businesses in Saudi Arabia.
- SMEs contribute around 30% of Saudi Arabia’s GDP and are central to Vision 2030, yet they still face financing challenges.
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HALA shifted from digital wallets to providing financial solutions for micro businesses, using data-driven lending decisions to support SME growth.
Saudi Arabia has deliberately placed small and medium-sized enterprises (SMEs) at the heart of its Vision 2030 strategy to diversify the economy beyond oil. According to the International Finance Corporation (IFC), there are nearly 1.8 million SMEs in the Kingdom, contributing around 30% of GDP, making them a vital engine of growth.
However, challenges remain. Many of these businesses—particularly at the micro level—struggle to access the financing they need to scale. For local banks, such firms are often seen as too small and risky compared to the expected returns.
This is where Saudi fintech companies are stepping in. Leading the way is HALA, which has just announced a $157 million Series B round, one of the largest fintech fundraisings in the Kingdom to date. HALA joins a growing wave of Saudi fintechs targeting the SME segment: Nayla Finance raised $4 million earlier this year, Lendo recently launched a crowdfunding platform, and Aajil is offering solutions for construction firms.
From Digital Wallets to SME Financing
Founded in 2018, HALA initially launched as a digital wallet provider for Saudi consumers. But the company quickly pivoted to focus on the underserved SME market.
As CEO and co-founder Maher Loubieh explains:
“We saw a massive gap in the market. These micro businesses are critical to the economy and Vision 2030, but banks and traditional institutions were struggling to serve them.”
HALA started by supplying point-of-sale (POS) terminals to small shops and restaurants. It then expanded its offering with a range of financial services. Crucially, the data collected through these services allows HALA to make faster and more accurate credit decisions, enabling small businesses to access new financing options and drive growth.
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