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Saudi fintech Lendo has teamed up with Austrian financial solutions firm Quantic Financial Solutions to launch a $200 million financing programme for small and medium-sized enterprises (SMEs) in Saudi Arabia. Through their partnership, Quantic will provide up to SAR750 million ($200 million) of institutional capital to Lendo, which will be used to offer working capital financing to SMEs in the country.

The programme was unveiled at the Money20/20 Middle East conference in Riyadh. Lendo, founded in 2019 by Osama AlRaee and Mohammed Jawabri, operates a Shariah-compliant debt crowdfunding platform that is regulated by the Saudi Central Bank (SAMA). This initiative will enable Lendo to expand its working capital financing capabilities and introduce new financing solutions for SMEs.

Quantic, an asset management firm headquartered in Vienna, Austria, will oversee the deployment of its capital in accordance with Lendo's financing strategy. By doing so, Quantic will also develop Shariah-compliant investment products based on the financed assets, which will attract international investors and provide a pathway for foreign institutional capital to enter the Saudi SME financing market.

This strategic alliance is crucial for the market as it aims to address the SME financing gap in Saudi Arabia. By leveraging Lendo's expertise in origination and Quantic's institutional-grade capital deployment, the Kingdom's SME sector will gain access to funding at a scale that was previously unavailable. Moreover, the partnership aligns with the objectives of the Financial Sector Development Program under Vision 2030, promoting debt-based crowdfunding as a viable pillar of the Saudi financial sector.

For Lendo, this partnership signifies a significant milestone and a strong endorsement of their business model. CEO and Co-Founder Osama AlRaee expressed his optimism, stating that the collaboration will grant Lendo the necessary scale and structuring discipline to serve a larger number of SMEs as demand continues to grow across the Kingdom.

Dr. Dietrich Matthes, Founding Partner of Quantic Financial Solutions, also praised Lendo's track record, origination quality, and regulatory standing, expressing his enthusiasm for supporting the program and deploying capital with discipline to foster SME growth in Saudi Arabia.