Riyadh – Mubasher: Manafa, an equity and debt crowdfunding platform in Saudi Arabia, has raised SAR 106 million, which is equivalent to $28 million, in a Series A round.

The fundraising transaction was led by STV and Wa’ed Ventures, the venture capital arm of Saudi Arabian Oil Company (Aramco), according to a press release.

Founded in 2018, Manafa aims to provide small and medium-sized enterprises (SMEs) in various sectors with the needed financial products by securing financing based on a crowdfunding model.

The model will enable institutional investors, including financial institutions, investment funds, and individual investors, to have financing opportunities in the SMEs through debt and equity securities.

Manafa seeks to bridge the financing gaps for SMEs by creating the opportunity for a larger segment of local retail and institutional investors to invest in.

It has funded over 180 SMEs so far with an amount exceeding SAR 1.50 billion through its platforms, with the participation of more than 100,000 retail and institutional investors.

Manafa plans to accelerate its growth in the Kingdom and boost its offering with the launch of various products and financing solutions across untapped sectors. In addition, it intends to enlarge the number of investors who have the chance to invest in previously-inaccessible alternative asset classes.

It is worth noting that the platforms are licensed by the Saudi Central Bank (SAMA) and the Capital Market Authority (CMA).

Abdulaziz Al Adwani, Founder and CEO of Manafa Capital, commented: “Manafa is planning to launch a new set of products that tackle quick access to financing and capital and empowers SMEs to fuel their growth.”

Amr Murad, Co-Founder and Chairman of Manafa, noted: “The idea of Manafa started with the launch of the Financial Sector Development Programme as one of the Vision 2030 realisation programmes.”

Murad added: “We aim - with the completion of this round - to work with our partners to increase the impact of Manafa products and solutions on the growth of private sector companies and enhance the empowerment of financial planning for individuals.”

Meanwhile, STV indicated: “As venture capital investors, we are well aware of the financing gap that SMEs are facing, and the challenges to obtaining financing from traditional banking.

“This is evident in the share of SMEs from the total commercial financing in the kingdom amounting to 8.40% today, which is aimed to be increased to 20% under the Kingdom’s Vision 2030,” the venture mentioned.