Tameed raises $15 million to offer Shariah-compliant digital lending products

Here’s Tameed! A Saudi-based fintech that offers shariah-compliant financing to SMEs for government contract purchase ordering in KSA.

Did we mention they just raised $15 million in their Series A funding round?

• Founded in 2019 by Mohammed Alomayyer and Mohammed Al Alshaikh, the debt based crowd-lending platform received its operating license from the Saudi Central Bank (SAMA) in January 2023, having previously operated within its Fintech SandBox.
• It’s the 2nd Saudi-based debt crowdfunding marketplace to raise a fresh funding round in the past number of weeks, with Lendo securing a $28 million in a Series B funding round in mid-December.

💰 Investor lowdown: The funding round was led by Alromaih Investments.

⚙️ Break it down

A business with a purchase order (PO) from a government agency or large private company can apply for financing through Tameed’s website or mobile app and receive a financing quote in just 5 minutes.

Businesses upload their POs to the Tameed platform, which quickly generates a financing quote.

The POs are then financed by investors on the platform and the supplier will receive the loan amount in 3-5 business days.

When the payment is due, the government entity pays into an escrow account, and Tameed settles the accounts between the business and the financiers.

🤑 How much does it cost?

The cost structure consists of a 2.5% administrative fee and a variable monthly profit rate of 1 to 2%. Financing periods range from 3 to 12 months.

🧲 What’s the draw for investors?

Tameed's platform offers investors the opportunity to earn average net annualised returns ranging from 15% to 20%.

The safety of these investments is generally high, given that the financed purchase orders are predominantly from government entities.

Investors also have the option to automate investments, receiving notifications for new opportunities and a 48-hour period to opt out if desired.

🔢 Crunching the numbers

Since its launch, Tameed has facilitated over $107 million in financing through its web platform and mobile apps. Additionally, since its introduction in September, the Tameed app has amassed over 50,000 downloads.

🔮 Flashforward

Tameed will use the fresh funding to support the growth of its business and to meet the increasing demand for its innovative digital lending products in Saudi Arabia.