FINTECH FUNDING

REPORT, 2023
The State of Funding in
Saudi Arabia
 1 INTRODUCTION
2 OVERVIEW OF THE SECTOR
3
TABLE OF FUNDING FIGURES

4 SECTOR DEEPDIVES
CONTENTS 5
INVESTOR ANALYSIS

6 FUNDING ROUNDS
7 INTERVIEWS

8 LOOKING FORWARD

9 ABOUT FinArabia
1.0 | INTRODUCTION

We are thrilled to unveil our FinTech Funding Report 2023, exclusively focused on the funding
landscape within the FinTech sector in Saudi Arabia. This report signifies a crucial step in tracing
the financial investment trajectory in the FinTech domain, aligning perfectly with the ambitious
goals of Saudi Vision 2030.

Since its emergence in 2018, the focus on funding within this sector has experienced
exponential growth, illustrating the Kingdom of Saudi Arabia's commitment to nurturing a
robust and sustainable financial technology ecosystem.

This report offers a detailed analysis of investment trends, highlighting the

significant funding rounds, diverse investor profiles, and emerging startups
in the FinTech space. It underscores the nation's strides towards financial
innovation and digital transformation, specifically through the lens of
investment and funding in the dynamic world of financial technology. Majed Al Rasheed
Founder
FinArabia
2.0 | OVERVIEW OF THE SECTOR
2023 marked a pivotal year in the development of Saudi Arabia's fintech industry, aligned with
the Saudi Vision 2030 Financial Sector Development Program (FSDP). The program is a key
step towards establishing Saudi Arabia as a leader in fintech and to transform Riyadh into a
global FinTech hub. The ambitious goal is to increase the number of Fintech companies
operating in the Kingdom to 525 by 2030.
600
525

As of now, the Kingdom has made substantial

progress, hosting 207 FinTech companies – a 400

41% increase from the previous year. Since the

inception of Fintech Saudi, there has been an 230
207
200
impressive 20.7x times growth in the number 20.7x 147

of FinTechs. 82
60
10 20
0
2018 2019 2020 2021 2022 2023 2025 2030
 2023 FinTech Funding in Saudi
Arabia
Total funding raised Total deals count Total funded startups Largest funded startup

$791M 33 30
Funding breakdown Top funded startups Funding breakdown
$398M

Series B Pre-series A
3%
3%
Series D
3%
$250M

Series C
6%
$300M Pre-seed
46%
Top active Investors Series A
#33
$200M 12% Total deals
count
$41.5M

$61.1M

Seed
$100M 27%

$0
Series D

Pre-series A
Series C

Series A

Series B

Pre-seed
Seed
2.1 | OVERVIEW OF THE SECTOR
Investment in the sector has also seen a significant upturn. Between September 2020 and
December 2023, over $1.14 billion was invested in Saudi fintech companies, with $791 million
invested in 2023 alone, marking a 231% increase from the previous year.

Looking ahead to 2024/25, the FinTech industry is poised for further significant
developments. The launch of three new digital banks and the release of new regulations by
SAMA and CMA are on the horizon. This period represents an exciting opportunity for
involvement in the flourishing fintech landscape of Saudi Arabia. And plays a crucial role in
promoting the ecosystem's enablers.
3.0 | FINTECH FUNDING IN KSA

$791M
Vol of funding Count of deals Fintech funding in Saudi Arabia from 2020
$800M 40 to 2023 exhibits a dynamic growth pattern:
33 deals

beginning with $20M in 2020, increasing to

27 deals 28 deals
$600M 30
$91M in 2021, reaching $239M in 2022, and

soaring to $791M in 2023. This growth is

$400M 20

$239M
attributed to regulatory support, increased
10 deals
$200M 10 digital adoption, and Saudi Arabia's
$91M
$20M

commitment to fostering a digital

$0 0
economy.
2020 2021 2022 2023

Source: SVC reports , Saudi Fintech Reports and FinArabia research

3.1 | KEY FUNDING FIGURES IN 2023
Total funding volume Total deals count

$791M 33
all deals are equity-based

Largest funded deal Top 3 funded startups Key active investors

$340M $340M

$308M

$28M
3.2 | KEY FUNDING FIGURES - DEBT
Global financial giants - J.P. Morgan and Goldman Sachs made investments in two of the
leading FinTech's within the region. This funding instrument signals startups are becoming
more attractive to lenders and it also reflects that investors are becoming more confident in the
potential returns of their investments in the ecosystem.

Both startups offer BNPL services. In terms of

debt financing funding rounds, Tabby secured
$700M from J.P. Morgan in December 2023,
while Tamara received $150M in funding from $700M
Goldman Sachs in March. The debt financing is
not counted in the report, only equity funding
$150M
rounds, but if we were to include both debt
financing rounds and equity funding rounds,
$0 $200M $400M $600M $800M
then Tabby would have been the most funded
Funding volume
startup with $1.08B, and Tamara would follow
with $490M.
 4.0 | SECTOR DEEPDIVES

2023 funding breakdown by month

$400M $392.7M
Vol of funding Count of deals 8 8 In 2023, the sector experienced a
fluctuating trend in investment
$300M 6
4 $253.6M
received throughout the year. Our data
3
reveals that December is the top
3 4 4
$200M
performing month in terms of both the
2 2 2 2 2
number of deals and the total funding
$100M $29.2M 1 2
raised.
$6.4M

$3.6M

$58.2M
$2.5M

$200K

0
$2.5M

$28M
$14M
$0 0
Oct
July
Jan

June

Sep
Mar

May
Feb

Nov
Aug

Dec
April
4.1 | SECTOR DEEPDIVES
Stages breakdown by deals count
The Kingdom has made progress in fostering
Pre-series A
innovation in the fintech sector as shown in the
Series B
3% 3% rise of deal activity in the region. In 2023, we
Series D
3% recorded an 18% increase in the number of
Series C
6% deals, rising from 28 recorded deals in the
Pre-seed previous year. This growth underscores a
46%
growing and thriving sector within the region's
Series A
12% #33 innovation landscape.
Total deals count

Seed
27%
Over 70% of the deals are within the pre-seed
and seed stages. This trend indicates that more
deals are happening at the early stage with
smaller ticket sizes being raised.
 4.2 | SECTOR DEEPDIVES
Stages breakdown by deals volume

Series C $398M As the early stage leads in terms of deals count,

the growth/late stages of investment receive the
Series D $250M
highest funding values. This aligns with the
Series A $60M+ common understanding that ticket sizes within
Seed $41M+ growth/late stages tend to be larger.

Series B $28M
It's also a reflection as startups advance through
Pre-seed $10M+ stages, they attract greater investment as they

Pre-series A $2M mature and demonstrate their potential for

growth and profitability.
$0 $100M $200M $300M $400M
4.3 | SECTOR DEEPDIVES
Product breakdown by deal volume

SME Debt Crowdfunding

$43M BNPL (Buy Now, Pay Later) is the top-
funded product, this is largely driven by
RNPL equity funding secured by Tamara and
BNPL $29.5M
$648M
Tabby. Following closely behind are
Accounting/POS
SME Debt Crowdfunding and RNPL
$27M
(Rent Now, Pay Later).
Savings
Payment $8.7M
$24.3M
Loyalty programs

$2.2M
Open banking

$3M
4.4 | SECTOR DEEPDIVES
Product breakdown by deals count

12
11
While savings and payments are not the
10
leading products in terms of investment
8 value, their 5-deal count each suggests a
significant level of interest from investors.
6
5 5
4 4 The chart highlights other sectors with
4

2 2
their deals count; others bar represents 11
2
products that collectively have 1 deal
0 count each.
Savings Payments RNPL BNPL SMEs Debt Blockchain Others
Crowdfunding
4.5 | SECTOR DEEPDIVES
Top 10 deals in 2023

Series C $340M

Series D $250M

Series C $58M
Series B $28M
Seed $28M
Series A $27M
Series A $15M

Series A $14M

Series A $5.1M
Seed $3.2M Angel Investors
4.6 | SECTOR DEEPDIVES
Startups with more than 1 deal count

Company Deals Volume Stage Month

$58M Series C January

$250M Series D October

$2M Pre-series A April

$5.1M Series A December

$533K Pre-seed April

$28M Seed November

4.7 | SECTOR DEEPDIVES
30 Startups that raised funding
5.0 | INVESTORS
ANALYSIS
Name

Savings, Payment, BNPL, Payments, PoS, Payment, BNPL, Payments, Blockchain,

Product RNPL, Expense card SMEs Debt Open banking SMEs Debt
Crowdfunding
Open finance
Crowdfunding

Startups
Oumla

Stage Pre-seed, Seed Pre-seed, Series B,

Series C
Series A, Seed Series A, Series C Pre-seed

No of
deals 4 3 3 3 3
5.1 | INVESTORS
ANALYSIS

Name

Product BNPL Savings Savings, Open banking,

,Insurtech
Savings
Open banking

Startups

Stage Series C, Pre-series A, Seed Pre-seed, Pre-seed,

Series D Series A Seed Series A

No of
deals 2 2 2 2 2
5.2 | INVESTORS ANALYSIS

Name

Product BNPL BNPL BNPL Private Funds

Distribution,
BNPL

Crowdfunding

Startups

Stage Series C,
Series D
Series C Series D, Series C Pre-seed Series C,
Series D

No of
deals 2 2 2 2 2
6.0 | Funding rounds

Company Amount Stage Product Month Investors

$340M Series C BNPL Dec

$250M Series D BNPL oct

$28M Seed RNPL Nov

SMEs Debt
$28M Series B Dec
Crowdfunding

POS Aug
$27M Series A
Accounting

Series A SMEs Debt

$15M Dec
Crowdfunding
6.1 | Funding rounds

Company Amount Stage Product Month Investors

$14M Series A Payment Sep

$5.1M Series A Savings Dec

$3.2M Seed Payment May Angel Investors

$3.2M Seed Payment May Angel Investors

Open
$3M Seed Dec
Banking Angel Investors

$2.5M Pre-Seed Payment Feb Angel Investors

6.2 | Funding rounds

Company Amount Stage Product Month Investors

Seed Loyalty Aug

$2.3M
Programs

$2M Pre-seed Insurtech July Angel Investors

$1.6M Pre-seed Blockchain Oct Angel Investors

$1.6M Seed Savings July Angel Investors

$1.4M Pre-seed Payment Dec Angel Investors

$1M Pre-Seed RNPL Oct Angel Investors

6.3 | Funding rounds

Company Amount Stage Product Month Investors

Private Funds Oct
$1M Pre-Seed Angel Investors
Distribution

$266K Seed SMEs Dec

Expense Card

$213K Pre-seed AI Investing Jan Angel Investors

$200K Pre-seed Crowdfunding March

Undisclosed Pre-seed Savings Aug Angel Investors

Undisclosed Seed Savings May

6.4 | Funding rounds

Company Amount Stage Product Month Investors

$430K Pre-Seed RNPL Feb

Undisclosed Pre-Seed Open finance Dec Angel Investors

Undisclosed Pre-seed Blockchain July Angel Investors

Undisclosed Pre-seed BNPL March

Undisclosed Seed Credit Nov Ramla Group

Pre-seed TaxTech July Angel Investors

Undisclosed
6.5 | Funding rounds

Company Amount Stage Product Month Investors

$58M Series C BNPL Jan

$533K Pre-Seed RNPL Apr Angel Investors

$2M Pre-series A Savings April

7.0 | Interviews
What founders say
The future of fintech is at the intersection of the blockchain,
cryptocurrencies and Islamic finance. The Muslim population is the
youngest in the world currently and the fastest growing, the population
growth rate of Muslims is roughly double that of non-Muslims.

Many of the world’s Muslims live in countries with unstable currencies and
have turned to cryptocurrencies as the only alternative for financial
stability. That’s where Takadao comes in, we build alternatives to existing
financial services that are shariah-compliant and yet cater to the entire
world.

Our latest funding round boasts some visionary investors from Saudi Arabia
as well as outside the region, including Tim Draper of Silicon Valley fame,
Wahed Ventures from the UK and HH Prince Sultan bin Fahad from Saudi Morrad Irsane
CEO & Co-founder, Takadao.io
Arabia. This stable of international investors validates that Takadao has
global appeal and has helped us attract an ever-growing community.
7.1 | Interviews
What founders say
In 2023, Lendo experienced an extraordinary year of growth, surpassing all
expectations. Our commitment to revolutionizing the lending landscape
translated into an impressive threefold increase in both lending volume
and our investor base compared to the previous year. We are thrilled to
announce that we reached a remarkable milestone, achieving a lending
amount of 1.2 billion SAR, a testament to the trust our clients have placed in
our platform.

This exceptional performance not only solidified Lendo's position as a

leader in the fintech industry but also allowed us to share the success with
our investors. We proudly distributed a substantial profit worth 140 million
SAR, reflecting the effectiveness of our business model and the robustness
of our financial strategies. Looking ahead to 2024, Lendo is excited about
ambitious goals, including expanding product offerings and enhancing Mohammed Jawabri
COO & CO-founder, Lendo
customer experiences.
7.2 | Interviews
What founders say

BNPL is both a thin margin and a capital intensive business requiring

significant amounts of funding in order to continue servicing the growth of
both our merchant partner and customer bases. Tabby has witnessed in
2023 over 3x growth in its gross merchandise value "GMV" over 2022
validating the need for such a flexible payment solution to our customers
that is both secure, easy to use and fast. We partnered with both local and
foreign investors the likes of STV, Hassana, Wellington and PayPal as well
as global banks such as JP Morgan to ensure strong and continued access
to liquidity.

It's been a tough year for fundraising for startups and especially for fintechs,
albeit BNPL, as we've witnessed with other global BNPL players. Although we Abdulaziz Saja
think 2024 will continue to be a tough year for startup fundraising, we're General Manager, Tabby

excited for the challenge and we're only just getting started.
7.3 | Interviews
What Investors say
Ever since the inception of Shorooq Partners, Saudi Arabia has been a
pivotal market for us, showcasing exceptional growth and potential. Our
commitment is reflected in our substantial investments exceeding tens of
million across tens of Saudi ventures, spanning across our venture capital,
private credit and gaming initiatives. This surge aligns perfectly with the
country's ambitious economic overhaul, spearheaded by HRH Crown
Prince Mohammed bin Salman's Vision 2030.

It's In recent years, our portfolio has expanded to include pioneering Saudi
startups like Mozn, Lean Technologies, and Retailo, highlighting our
strategic focus on fostering financial technology's evolution within the
kingdom. We're poised to support and witness the further transformation
of the landscape in Saudi, propelled by a shared vision of progress and
innovation.". Shane Shin
Founding Partner, Shorooq Partners
7.4 | Interviews
What Investors say
2023 was a banner year for FinTech investments at Vision Ventures, and
we're proud to have played a pivotal role in shaping the dynamic landscape
of the Middle East, particularly in Saudi Arabia. With four strategic
investments spanning key solutions: an open banking platform licensed in
Saudi and 2 other GCC countries, an innovative infrastructure company
empowering next generation payments, an omni-channel solution that
makes going online and offline effortless for retail and a KYC/AML platform.
We have fueled innovative companies poised to revolutionize poised to
revolutionize the financial sector

We see immense potential in the Kingdom's supportive regulatory

environment, growing tech-savvy population, and increasing demand for
digital financial services. Our investments not only contribute to Saudi
Arabia's FinTech leadership but also leverage the Kingdom's unique Haitham Bu-Aisha
advantages to benefit the wider Middle East Partner, Vision Ventures
7.5 | Interviews
What Investors say
Core Vision Investments Company, based in Riyadh, Saudi Arabia, is a
distinguished private equity firm dedicated to nurturing entrepreneurial
talent with strong business models. Our primary goal is to empower these
entrepreneurs by funding them and integrating them into our network
through exclusive events and joint accelerator programs. With a dynamic
approach, we have engaged over 2000 clients, offering expert advice on
funding strategies and facilitating successful investment rounds.

This effort has culminated in an impressive portfolio of leading startups

worldwide, boasting a combined market valuation over $40 million.
Notably, we achieved an extraordinary milestone by orchestrating a highly
profitable exit for one of our flagship companies, realizing a high return on
investment, underscoring our commitment to generating substantial
Faisal Alabdulsalam
value for our stakeholders and contributing to the global startup
ecosystem. Founder & CEO
Core Vision Investments
8.0 | Looking Forward

As we look ahead, the Saudi fintech sector is poised for continued growth and innovation.
The ongoing support from regulatory bodies, combined with Saudi Arabia's vision for a
digitally empowered economy, suggests that fintech will remain a key area of investment
and development. Stakeholders should watch for emerging trends, such as fintech's role
in driving financial inclusion and the integration of advanced technologies like AI and
blockchain, which are set to further transform the financial landscape in the Kingdom.

The 2023 Fintech Funding Report for Saudi Arabia paints a picture of a vibrant and rapidly
evolving sector. With significant investment, regulatory support, and a clear vision for the
future, the fintech ecosystem in Saudi Arabia is well-positioned to continue its trajectory of
growth and innovation, contributing to the Kingdom's broader economic goals.
9.0 | ABOUT FINARABIA
FinArabia is a FinTech boutique consultancy & advisory that provides market intelligence,
strategic advisory, consulting and bespoke services for Saudi Arabia's fintech ecosystem,
banking and other related sectors.

With finance analysts, technology specialists, and strategy consultants present locally, FinArabia
offers global, regional, and local expertise on fintech, banking and related industries. Our
analysis and insights help professionals, business executives, startups and the investment
community to make fact-based decisions and to achieve their key business objectives.

“We turn isolated data into actionable insights”

CONTACTS
Address:
Riyadh, Saudi Arabia

WhatsApp:
+966539679744

Email:
services@finarabia.com

LinkedIn:
FinArabia