Saudi Central Bank Grants License to Funding Souq for Debt Crowdfunding Platform
In a move to boost financial innovation in the Kingdom, the Saudi Central Bank, also known as SAMA, has given the green light to Funding Souq, a debt crowdfunding platform, to operate in Saudi Arabia.
With this new license, the total number of companies authorized in the fintech sector now stands at 10, increasing the tally of fintech companies permitted by SAMA to 61.
“This decision showcases SAMA’s commitment to bolstering the financial sector, enhancing the efficiency of financial transactions, and fostering innovative financial solutions for greater financial inclusion in Saudi Arabia,” the bank stated.
Established in 2020, Funding Souq was created to bridge the gap between investors and small to medium enterprises in need of loans ranging from $20,000 to $150,000.
Earlier in January, SAMA had granted a license to Thara, a debt crowdfunding company, marking the ninth platform to receive approval in the Kingdom.
In November 2023, Dnaneer Financing Co. became the eighth fintech firm authorized by SAMA to provide debt-based crowdfunding solutions in Saudi Arabia.
This lending platform connects businesses with steady revenue streams to investors in Saudi Arabia, offering a range of investment opportunities while facilitating financing for these companies.
Back in March 2022, Funding Souq successfully secured $2.5 million in a seed funding round, with contributions from existing and angel investors, as reported by Forbes.
The latest round of financing has boosted the crowdfunding platform’s total funding to $2.82 million, enabling Funding Souq to expand its operations and strengthen its partnerships with debt investors, family offices, and banks to focus on Shariah-compliant financing.