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HALA Secures Landmark Funding
HALA, a Saudi-based fintech platform specializing in embedded financial services for micro, small, and medium-sized enterprises (MSMEs), has raised $157 million in a Series B round. The deal ranks among the largest of its kind in the Middle East, reflecting growing investor confidence in the region’s digital finance sector.
The round was co-led by The Rise Fund, TPG’s global impact investment strategy, and Sanabil Investments, a subsidiary of the Public Investment Fund (PIF). They were joined by an array of regional and global investors, including QED, Raed Ventures, Impact 46, MEVP, Isometry Capital, Arzan VC, BNVT Capital, Kaltaire Investments, Endeavour Catalyst, Nour Nouf Ventures, Khwarizmi Ventures, and Wamda Capital.
Focus on Saudi Market and Regional Growth
HALA plans to channel the new capital into expanding its service portfolio in Saudi Arabia, its core market, while also introducing new lending solutions tailored to MSMEs and freelancers. The company has also signaled its intention to expand across the region, aligning its growth strategy with Saudi Arabia’s Vision 2030 agenda, which emphasizes SME development and digital transformation of financial services.
The funding will support HALA’s efforts to strengthen its role in providing modern financial infrastructure, particularly for smaller enterprises that have historically lacked easy access to banking and credit services.
Serving More Than 142,000 Businesses
At present, HALA serves over 142,000 businesses and facilitates more than $8 billion in annual transactions. Its product offering includes business accounts, card issuance, digital payments, transfers, point-of-sale systems, financing, and corporate cards. These services aim to give business owners seamless access to tools that improve financial management and growth prospects.
By integrating these services into a single platform, HALA seeks to reduce friction for entrepreneurs and freelancers, allowing them to focus on their operations rather than administrative hurdles.
The Role of SMEs in Saudi Arabia’s Economy
The SME sector in Saudi Arabia plays a central role in driving economic growth. Estimates suggest that between 614,000 and 1.8 million SMEs account for up to 99% of private sector activity. Collectively, these businesses contribute 20–35% of GDP, equivalent to between $310 and $375 billion annually, while employing nearly 4.7 million people.
From 2016 to 2021, SME contribution to GDP grew by 45%, supported by government policies, access to financing, and rapid digital adoption. This momentum has created favorable conditions for fintech platforms like HALA to expand, offering solutions that improve efficiency and financial inclusion.
Investor Perspectives
Investors highlighted HALA’s positioning in an underserved segment of the market. Representatives from The Rise Fund pointed to the importance of empowering small businesses with access to modern payment and banking solutions, describing HALA as well placed to lead in this area.
HALA’s leadership also expressed confidence that the diverse mix of regional and global backers will provide expertise as well as capital, helping the company execute its next phase of expansion at greater scale.
Strategic Implications for the Region
The funding underscores the growing importance of fintech in the Middle East. By enabling SMEs to access embedded financial services, HALA not only supports entrepreneurs but also contributes to broader economic diversification goals.
With $157 million in new backing, the company is preparing to build on its current base of 142,000 clients, broaden its lending services, and extend its reach across the region. The next stage of HALA’s development will be closely watched, given its potential to serve as a model for fintech-driven SME support in emerging markets.
