Lamaa Is A Rapidly Growing Fintech Startup In Saudia Arab’s Startup Booming Ecosystem
The Riyadh-based fintech startup Lamaa helps small and medium-sized businesses in streamlining their financial needs.
Lamaa is a rapidly growing startup in the Saudia Arab’s startup budding environment. Being a fintech startup it provides financing solutions such as supply chain finance and the popular B2B option buy now pay later plans for SMEs.
These services provided by the startup are in line with the 2030 vision to allow SMEs to digitalize and raise their contribution to 35 percent of GDP by 2030. The startup is an early payment invoice discounting company focused on supply chain finance and aims to empower SMEs by getting their payments early. It actually provides a bridge between the lender and the company. It also claims that it reaches out to the company’s clients early and urges them to pay invoices in time at a discounted rate plus at a willing offer.
Lamaa works on straightforward technology as its advanced algorithms enable the buyers to offer competitive discount rates on invoices. The success of the startup is evident from the fact that it has recently received funding of $5.5 million in its seed round co-led by Raed Ventures and Saudi Aramco’s entrepreneurship arm Wa’ed.
This hefty amount of funding is quite a big step for a startup since it is quite young and was established in 2021 by Sumeet Khutale. He has extensive experience in Investment Banking Technology and cloud banking with global consulting companies such as Barclays Capital and JP Morgan.
Lamaa aims to address the available funding gaps for SMEs who face a load of challenges in terms of obtaining credit risk ratings that directly impact their cash flow. These and other similar services provided by financial technologies have exponentially raised the demand for fintech apps and software. Another reason for fintech popularity is their inherent potential of “banking the unbanked” meaning providing financial services to people who lack access to banking and other financial facilities.
Sumeet Khutale, founder and CEO of Lamaa while elaborating the success of the company also explicated his expansion plans regarding the startup. He said
“In addition, to supply chain finance, we will soon start offering B2B Buy Now Pay Later plans, which would be the first offering of its kind in the region. We also plan to expand our company into Egypt, UAE, and Qatar in the next few months.”
Story Credit: FinExtra