Zelo Receives $715M to Scale SME Financing Across the Middle East

Dhanush Arjun, Zelo CEO

Abu Dhabi-based Zelo, formerly known as eFunder, said on Thursday (4 December) it has received $715 million in capital from its parent, International Holding Company (IHC.AD), to expand its financing services for small- and medium-sized businesses.

Zelo provides small businesses and mid-tier suppliers with liquidity by converting approved invoices from government entities, large corporates and major regional businesses into working capital within 1 to 2 days.

Smaller businesses in the Middle East usually face lengthy delays before being paid and often struggle to access traditional forms of financing.

Zelo has to date funded over 12,000 transactions worth $225 million across many sectors including oil and gas, construction, infrastructure and retail. It is targeting $1 billion in gross financing volume in 2026.

"We're trying to introduce liquidity into B2B (business to business) supply chains," Zelo CEO Dhanush Arjun told Reuters.

"By doing that, we're trying to enhance the strength and resilience of these supply chains to support SMEs... and increase the liquidity that they can enhance and support GDP growth."

Arjun said IHC's support would help "fast-track" more anchor partnerships for Zelo to tap into a wider supply chain network.

A World Bank report estimated the funding gap for small to medium-sized enterprises in the Middle East region at between $210 billion and $240 billion. Other estimates put that figure even higher.

"Our commitment to Zelo signals confidence in the region's ability to originate institutional-grade receivables and to play a larger role in the global private credit market," IHC CEO Syed Basar Shueb said.

IHC acquired Zelo earlier this year. Zelo is licensed and regulated by Abu Dhabi's financial centre ADGM.

Source: Reuters