It’s hard to believe how far the Saudi fintech scene has come since 2015. Back then, a task as simple as selling shares was almost always followed by a frustrating call to a broker because the app kept crashing.
That experience is a distant memory today. Partly because of fintechs like Investsky (spoiler alert: they’re a portfolio company). The promise has always been huge—a young, digitally-native population, the ambitious roadmap of Vision 2030, and an economy hungry for disruption. But honestly, as a VC, I’ve also felt the frustration. For too long, the brilliant founders we back have hit a predictable roadblock: finding the right kind of capital that isn't an expensive equity round.
The path to scaling a successful fintech isn't a simple ladder of Series A, B, and C. Sometimes you need bridge capital, non-dilutive funds for a specific expansion, or just a smarter way to finance growth. The good news? That’s finally changing.
The Missing Middle: Fixing the Saudi Capital Stack
For most of the last decade, equity has been the only real game in town. While VC funding is essential for foundational growth and risk-taking, it’s not a one-size-fits-all solution. Fintechs, especially those with solid repeatable revenue or asset-backed business models, need financial tools that match their operational reality.
This is where the new, diversified capital channels are stepping in:
This is the development that makes me most excited. The rise of specialized direct lending and venture debt funds means our founders finally have options.
We’ve backed a few lending fintechs in the past 24 months (Erad and Aajil included). They had a massive SME client pipeline but needed capital to scale. Waiting six months for the next equity round would have meant losing revenue momentum. Instead, they took on venture debt. It provided the instant runway they needed, allowed them to hit key milestones, and ultimately positioned them for a much larger equity round. It’s smart growth, and it lets founders keep more of what they build.
We’re also seeing direct lending initiatives from firms like Partners for Growth who have a great track record of backing Tabby as they grew into a unicorn.
Saudi Arabia is a global hub for Islamic finance. The push to make Sukuk (Islamic bonds) more accessible to growth-stage fintechs is a catalyst for market growth. This isn’t just about attracting ethical investors; it's about opening a vast, deep pool of capital within the GCC that specifically looks for Sharia-compliant instruments. We’re already seeing frameworks for "Fintech Sukuk" emerge—instruments specifically tailored to digital assets and predictable digital revenue streams.
For platforms focusing on Islamic challenger banking or ethical wealth management, this capital source is perfectly aligned with their business model and unlocks immense scaling potential. This also ties in directly with the booming real estate market in KSA.
Another sector we are seeing a growing opportunity for Sukuk-based financing is real estate, and platforms such as Safqah Capital are already tapping into that opportunity.
Liquidity isn't just about attracting investors to deploy money into a startup; it’s also about having an efficient way for investors (and founders) to access returns on their investments.
The Nomu-Parallel Market functions as a bridge, allowing founders and early investors to realize liquidity while providing the company with a platform to enhance corporate governance and brand equity. An interesting case study is Jahez, the domestic food delivery champion: its successful IPO on Nomu validated the entire ecosystem, demonstrating a clear, tangible path from VC funding to a public listing, and ultimately, a graduation to the main Tadawul exchange, setting a compelling precedent for the next generation of Saudi unicorns.
The transformation of Saudi's fintech landscape isn't just about more money—it's about smarter money. The emergence of venture debt, Sukuk instruments, and accessible public markets like NOMU represents something we've been waiting for: a complete capital stack that actually matches how modern fintechs grow.
For founders, this means strategic choices beyond constant dilution. Need capital to bridge to profitability? Venture debt. Building a Sharia-compliant revenue model? Tap into Sukuk. Ready to scale with institutional credibility? NOMU provides that path.
For us as investors, it means our portfolio companies can move faster, scale smarter, and preserve more value for the people building these businesses. The frustration of watching brilliant founders constrained by limited options? That's finally becoming history.
The infrastructure is here. The capital is flowing. Now it's time for the next generation of Saudi fintechs to build something extraordinary.
