Saudi Arabian fintech company Abwab.ai has secured $4 million in a seed funding round as it looks to expand its artificial intelligence-powered infrastructure for small and medium-sized enterprise lending.
The Riyadh-based company said European venture capital firm Speedinvest led the round, with Middle East Venture Partners also participating. The investment represents Speedinvest’s first deal in Saudi Arabia.
Founded in 2023, Abwab.ai develops technology for banks, finance companies and other lenders rather than providing loans directly to businesses. Its platform is designed to automate multiple stages of the SME lending process, including customer onboarding, loan origination, credit assessment, disbursement, servicing, billing, collections and recovery.
According to the company, financial institutions using its technology have already processed more than SR10 billion ($2.7 billion) in SME loans through more than 10 institutions across Saudi Arabia. The new capital is expected to help the company expand its lending infrastructure and enable financial institutions to serve a larger number of businesses.
The funding comes as Saudi Arabia seeks to strengthen the role of SMEs in its economy under Vision 2030. The Kingdom has set a target of increasing the sector’s contribution to gross domestic product to 35%, compared with a baseline of around 20%. Improving access to financing is considered an important part of achieving that objective.
Abwab.ai founder and CEO Baraa Koshak said the next phase of SME financing will require financial institutions to expand lending capacity more efficiently. He described the company’s technology as infrastructure that can help lenders assess and manage a much larger business customer base.
