In a significant development for the fintech sector, Riyadh-headquartered startup Hala has secured a new round of funding from the prestigious private equity firm TPG, as reported by The Data last week. This fresh infusion of capital underscores the growing confidence in Hala’s innovative financial solutions for small and medium-sized enterprises (SMEs) in Saudi Arabia. Although the details of this deal remain undisclosed, it is a notable milestone for Hala, following its $6.5 million Series A funding round led by Impact46 in 2021.
From Mobile Wallet to SME Banking Powerhouse
Founded in 2018 by Esam Alnahdi and Maher Loubieh, Hala initially entered the market as Halalah, one of Saudi Arabia’s pioneering mobile wallets. Recognizing the evolving needs of the market, Hala transitioned its focus to offering comprehensive financial services tailored for SMEs. This strategic pivot has positioned Hala as a burgeoning fintech leader aiming to transform the banking landscape for small and medium-sized businesses in the Kingdom.
Transformative Solutions for SMEs
Hala’s suite of services is designed to simplify and enhance the financial operations of SMEs. The company offers a business checking account, Point of Sale (POS) solutions through both physical devices and a software-based POS that can convert any mobile device into a payment terminal, and debit cards equipped with expense management features. These tools collectively facilitate easier inbound and outbound transactions for businesses, streamlining their financial processes.
In addition to SMEs, Hala extends its services to freelancers licensed by the Saudi Human Resources Ministry, providing them with essential financial tools such as bank accounts, debit cards, and payment acceptance solutions. This expansion reflects Hala’s commitment to supporting diverse segments of the business community in Saudi Arabia.
Impressive Market Impact
Hala’s impact on the market is evident from its growing customer base and transaction volume. The fintech company serves over 100,000 retailers with its POS solutions, managing an annual transaction volume that exceeds $18 billion. This impressive performance highlights the crucial role Hala plays in facilitating efficient financial transactions for businesses across the Kingdom.
New Horizons with TPG’s Investment
The recent funding from TPG, a US-based firm with over $220 billion in assets under management, marks a pivotal moment for Hala. TPG’s portfolio includes investments in renowned companies such as Spotify, Airbnb, Box, and Calm, showcasing its track record of supporting high-growth, innovative firms. This partnership is expected to provide Hala with not only capital but also strategic insights and expertise to fuel its next phase of growth.
Strengthening Regulatory Footing
In a further boost to its credentials, Hala recently acquired a license from the Saudi Central Bank to offer debt-based crowdfunding solutions. This new license complements its existing Electronic Money Institute (EMI) license, which it was among the first local fintechs to obtain. These regulatory approvals reinforce Hala’s position as a trusted and compliant player in the Saudi fintech ecosystem.
With the backing of TPG, Hala is well-positioned to scale its operations, introduce new financial products, and expand its market presence. The fintech’s focus on leveraging technology to meet the needs of SMEs aligns with broader economic goals of fostering entrepreneurship and financial inclusion in Saudi Arabia
May 29, 2024
Great news for Hala and the Saudi fintech sector! The new investment from TPG is a powerful signal of confidence in the company’s innovative solutions for small and medium-sized businesses. It is impressive that Hala continues to attract investments after a successful Series A round in 2021. We look forward to further success!