Riyadh: HALA, a Saudi Arabian fintech specializing in embedded financial services for micro, small, and medium enterprises (MSMEs), has successfully raised $157 million in a Series B funding round, marking one of the largest fintech Series B deals in the Middle East.
The round was led by The Rise Fund, TPG’s global impact investment strategy, and Sanabil Investments, a company owned by the Public Investment Fund (PIF), alongside prominent local and international investors.
HALA Secures Landmark Funding to Accelerate Growth
The fresh investment underscores HALA’s growing dominance in the MSME-focused fintech sector. The company currently serves more than 142,000 businesses and processes over $8 billion in annual transactions, solidifying its reputation as a trusted partner for small businesses.
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The new capital will be deployed to enhance embedded financial services, introduce lending products for SMEs and freelancers, and expand the company’s operations beyond Saudi Arabia.
HALA Attracts Global and Regional Investor Confidence
In addition to The Rise Fund and Sanabil Investments, investors in the Series B round included QED, Raed Ventures, Impact 46, Middle East Venture Partners (MEVP), Isometry Capital, Arzan VC, BNVT Capital, Kaltaire Investments, Endeavor Catalyst, Nour Nouf Ventures, Khwarizmi Ventures, and Wamda Capital.
The deal also marks The Rise Fund’s first-ever investment in the Middle East and KSA, reflecting the strength of HALA’s scalable model and the potential for social impact.
HALA Positioned to Support Saudi Vision 2030
The funding announcement comes on the back of HALA’s strong year-on-year growth and its alignment with Saudi Vision 2030, which aims to enhance the contribution of SMEs to the Kingdom’s GDP. SMEs currently account for 20–35% of GDP, valued between $310–375 billion annually, and employ nearly 4.7 million people across retail, manufacturing, and construction.
Government initiatives and digital transformation efforts have driven a 45% increase in SME GDP contribution from 2016 to 2021, creating significant opportunities for fintech solutions like HALA.
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Esam Alnahdi, Co-founder and Chairman of HALA, called the investment a turning point: “This landmark investment reflects our relentless pursuit of innovation and excellence in serving small businesses. It validates our vision to create meaningful change in the MSME landscape.”
Maher Loubieh, Co-founder and Group CEO of HALA, highlighted investor trust: “We are proud to welcome new partners like TPG’s Rise Fund and Sanabil. Their expertise and global perspective will elevate our ambitions as we scale further.”
Yemi Lalude, Partner at TPG and Head of EMEA for The Rise Funds, said: “HALA is uniquely positioned to empower micro and small businesses with innovative payment solutions. Our investment reaffirms the growth potential of digital banking in the region and its role in shaping the next-generation economy.”
A Sanabil Investments spokesperson added: “This funding round aligns with our mission to support visionary companies with patient capital and strategic guidance. HALA has the potential to redefine SME financial services in Saudi Arabia and beyond.”
