TPG and Sanabil, part of Saudi Arabia’s sovereign wealth fund, have led a $157m funding round for Saudi fintech Hala, valuing the company at roughly $900m, according to Bloomberg.

The round included $130m in equity and $27m in debt, making it one of the largest early-stage financings in the Middle East.

TPG participated via its impact strategy, The Rise Fund. The round also drew backing from QED, Raed Ventures, Impact46, Middle East Venture Partners, Isometry Capital, Arzan VC, BNVT Capital, Kaltaire Investments, Endeavor Catalyst, Nour Nouf Ventures, Khwarizmi Ventures, and Wamda Capital.

Founded to serve small businesses, Hala provides payment solutions to more than 142,000 SMEs in the Gulf region and has expanded into corporate cards, business accounts, and lending. The company, which employs around 650 staff mostly in Saudi Arabia, is preparing to expand into the UK and other European markets.

Co-founder and chairman Esam Alnahdi said: “Nailing financing to basically a base that was never – and will never – be served by banks, is something that keeps us excited. That is going to be the big, big milestone that we are focusing on within the next 12 to 18 months.”

Hala’s co-founders, Alnahdi and Maher Loubieh, also confirmed they are making early preparations for an IPO, which would “obviously” take place in Saudi Arabia. Loubieh added the company may pursue acquisitions to support the growth of its lending business.

The raise follows a $160m funding round by fellow Saudi fintech Tabby earlier this year, highlighting the surge of venture investment in the Middle East, fuelled by sovereign wealth funds and a wave of IPOs across the Gulf.

If you think we missed any important news, please do not hesitate to contact us at news@pe-insights.com.

Can`t stop reading? Read more.