- Saudi Arabia-based fintech Tameed has raised $15 million in a Series A round, led by Alromaih Investments.
- Founded in 2019 by Mohammed Al Alshaikh and Mohammed Alomayyer, Tameed offers SMEs P2P Shariah-compliant financing options for their government contract purchases through its digital platform.
- The new cash infusion will allow Tameed to accelerate its growth and meet the demand for its digital lending products.
Tameed Digital Lending Platform, which offers shariah-compliant government purchase order financing for SMEs in Saudi Arabia, announced that it has successfully closed a funding round (Series A) amounting to SAR 56.75 million ($15 million) led by Alromaih Investments.
Tameed plans to utilise the proceeds from the Series A funding round to accelerate its growth and meet the increasing demand for its innovative digital lending products stemming from the overall growth in Saudi Arabia’s economy, which is supported by the continued accomplishments of various Vision 2030 programmes and giga-projects.
Tameed, which obtained its operating licence from the Saudi Central Bank (SAMA) in January 2023 and prior to that was operating within SAMA’s FinTech SandBox, was able to offer SMEs funding exceeding SAR 400 million, serve investors and borrowers through a mobile app that had 50K downloads, and achieve a growth rate exceeding 400%. Tameed was able to gain the trust of its clients by providing clear pricing and fast loan processing time (within 3 business days), all of which are completed through a fully digitalized process that enables efficiency in processing and customisation of its services, which translates into tailored-made products that aim to support SMEs in completing their purchase order commitments.
“The coming years are promising for the growth of the Kingdom’s economy, and we in Tameed are keen on meeting the needs of SMEs by offering innovative funding products," said Mr. Mohammed Alomayyer, the CEO and co-founder of Tameed. “We have recently added performance bond financing for projects to serve a wider range of SMEs and help them participate effectively in these major projects.”
Mr. Omar Alromaih, the CEO of Investments at Alromaih Group, commented that “the results of the funding round reflect our belief in this opportunity and the sector, and we look forward to seeing Tameed continue its growth and expand its investment and funding opportunities to meet the needs of SMEs for financing and meet the demand for funding gaps created by Vision 2030 programmes and projects, which is estimated to be SAR 300 billion by 2030."
Alromaih Group seeks in their strategy to diversify and various investment tools and risk mitigation through acquisitions, transactions, and investment rounds into the FinTech Division, which is highly considered one of the most promising and targeted sectors in the Kingdom’s Vision 2030.
“Funding SMEs working on national and giga-projects offers an area of growth and innovation,” said Mr. Mohammed Al Alshaikh, the co-founder of Tameed. He added that “this funding round will enable us to grow Tameed to serve investors and SMEs requiring funding while innovating on the best technologies and products." For example,we recently launched an Auto-Invest product that will enable busy investors to invest in short-term funding opportunities according to a pre-configured investment preference.