UAE-based FinTech and ingenious digital lending platform LNDDOhas successfully raised $3M in its SEED round backed by a network of key investors led by H.H Sheikh Tahnoon Bin Shakhboot Al Nahayan.
Officially authorized and regulated by the Financial Services Regulatory Authority (FSRA) under Abu Dhabi Global Market (ADGM) jurisdiction, LNDDO is a unique credit service designed to empower SMEs and encourage them to realise their full potential, nurture their creativity and achieve their goals.LNDDO is revolutionizing the SME lending space and offering ten-time faster turnaround time versus the norm.
As recorded in our Q3 2021 EVM FinTech Venture Investment Report it seems that FinTech ecosystems in Emerging Venture Markets have been attempting on disrupting the banking sector, or rather create alternatives for a new form of Banking. A quick scan of FinTech startups in MENAwhich closed 15% more deals and raised 150% more funds by October 2021 than full-year 2020, we can spot innovations in digital wallets, micro-lending, digital transfer, and peer-to-peer banking. FinTechs across Emerging Venture Markets also following suit, where startups in markets like Egyptand Pakistanhave been able to capitalize on a widely unbanked demographic, while FinTechs in more established markets like the UAEor Turkeyhave been tapping into instant accessibility through Tech optimization. While we can spot a difference in maturity and investor focus between ecosystems in EVMs, where the median size of SEED rounds was highest in nascent FinTech ecosystems like Pakistan ($2M), major rounds were closed in favor of neo banking and micro-lending platforms across MENAPT. Major rounds this year included Egypt-based Kashatand CreditFins, Qatar-based Spendwisor, Turkey-based Colendi, and Pakistan-based Abhi Finance.
In standard cases, applying for a small business loan in the UAE was a lengthy and complicated process, taking six to eight weeks and reams of documentation. But, thanks to LNDDO’s new and approved application process and investment in technology, SMEs can now receive a credit decision in just a matter of minutes, and much-needed working capital funds can be disbursed and made accessible to small businesses within just a few days. Ashraf Ghazaly, Founder and CEO of LNDDO highlighted “Since launching in the region, I’m absolutely thrilled to announce that our services have been received tremendously well. Now, thanks to H.H. Sheikh Tahnoon Bin Shakhboot Al Nahayan we are able to assist and uplift even more small and medium-sized businesses and entrepreneurs.”
Providing easy repayment options, the loans are suitable for digitally forward SMEs in various sectors, provided they have been operating for a minimum of 12 months. The visionary firm also plans to expand to Egypt and Saudi Arabia as early as next year. Alongside this latest investment, LNDDO has also worked on optimizing and improving the efficiency of its application and loan approval processes. This translates into quicker working capital for SMEs which they can use for productive purposes such as adding new inventory, hiring new staff, marketing campaigns. Founder and CEO Ashraf Ghazaly concluded “This is fabulous news for the UAE’s hardworking business owners who can now spend time more time on running their business versus running around for funding. The SME sector in the UAE is on the cusp of a recovery from the aftereffects of the pandemic and is set to ride the growth wave boosted by the EXPO 2020 and various other government efforts. Quick access to funding will help accelerate a speedy revival for the sector.”
