FinTech Startups Q&A

Hello and welcome to the FinTech Startups Q&A, where I shed some light on successful FinTech startups from Saudi Arabia and the GCC. Today, I'm thrilled to have with me Mohamed Jawabri , Co-founder and COO of Lendo | ????? , an invoice financing crowdfunding platform from Saudi Arabia.

??Can you tell us a little bit about Lendo and how it has been disrupting the traditional invoice #financing industry??

?? What we do is provide financing facilities to #SMEs through the #crowdlending model. Invoice financing is one of our initial products, and we have more in the pipeline. We've digitalized the service, offering a #digital experience for borrowers, lenders, and investors that is faster and more flexible than traditional financing options.

??What inspired you to launch Lendo, and what challenges did you face in the initial stages??

?? Before Lendo, I was a digital project manager, primarily working on projects with government entities for Saudi Vision 2030 and specifically the National Transformation Program (NTP). Our work focused on digitalizing government services. As a digital project manager, I faced #cashflow issues, such as having several outstanding invoices with different government entities while struggling to pay salaries on time or expand our team. One day, I read an article about #optimizing cash flow in companies and learned about "crowdlending." After further research, I decided to pursue the crowdlending model with my co-founder, Osama Alraee

??How does Lendo differentiate itself from other invoice financing platforms in the market??

?? We consider Lendo a technology company rather than a financing company. Our edge lies in our technology, which allows us to heavily invest in digital experiences and optimize operations for #borrowers and #lenders . We customize our #products to cater to different needs in the market.

??Can you walk us through the process of how Lendo operates and how investors can get involved??

?? Our #process is simple and straightforward. We operate as a #marketplace connecting borrowers (SMEs) and lenders. The steps involved are:

1- SMEs can register on our platform easily in less than 3 minutes.

2- We perform a full #KYC in 1 minute, thanks to our direct #integration with Elm Company and other relevant ministries and credit bureaus such as Saudi Credit Bureau - SIMAH and Bayan Credit Bureau , allowing us to gather all necessary information for #creditassessment .

3- Our #in -house #creditscoring engine and credit team review each application, assigning a risk rating to each company.

4- We send a proposal to the company, including risk and pricing details, allowing them to upload their invoices for financing.

5- After #duediligence , we upload the opportunity to our marketplace as an investment opportunity, notifying lenders via our #web and #mobileapp https://len.do/majed.

6- Once the opportunity is successfully closed, the money goes to the borrower's #wallet , and the repayment cycle begins with prorate and #Murabaha profit.

??What types of businesses and industries does Lendo primarily cater to??

?? We lend to various industries, focusing on IT, marketing, retail, consultancies, and others requiring short-term financing. Recently, we signed agreements with MonshaatSA SMEs bank and the Culture Development Fund (CDF) by National Development Fund (NDF) to expand our customer base.

??What are some of the major benefits that borrowers can expect from using Lendo's services??

?? Our benefits include speed, #customization , and charging borrowers based on days rather than months. For example, if a borrower takes a loan for 60 days and repays it in 30 days, we only charge for 30 days.

??How has the #covid19 pandemic affected Lendo's operations, and what measures have you taken to adapt??

?? COVID had a positive impact on Lendo. We started just before the pandemic, and as a result of the economic downturn, we saw a spike in registrations from lenders seeking #alternativeinvestments . On the borrower side, there was a high demand for financing, but we focused on segments that were not negatively impacted by COVID.

??How does Lendo ensure the security and privacy of its users' data and transactions??

?? We adhere to Saudi Central Bank – SAMA #cybersecurity framework, ensuring that our clients' data and #financial transactions are safe. We maintain a high level of cybersecurity maturity and have clear governance, including privacy, user protection, terms and conditions, and #dataencryption .

??Looking ahead, what are some of Lendo's plans for expansion and growth in the next few years??

?? Lendo's expansion and growth will focus on:

1- Introducing more products for borrowers.

2- Adding more features for investors.

3- Potentially expanding beyond the Saudi market, starting with #GCC or neighboring countries with promising opportunities once we prove our model in Saudi Arabia.

??Finally, what advice do you have for aspiring FinTech #entrepreneurs who want to disrupt traditional financial systems??

?? My advice for new #entrepreneurs is that the market now offers greater opportunities than ever before, thanks to the advancements in government technology infrastructure in Saudi Arabia. This empowers any #FinTech companies looking to operate in the Kingdom. Services such as Absher and e-government allow you to perform full #KYC , which is essential for a seamless digital experience. #openbanking is creating new opportunities to enhance service offerings, and more FinTech startups will likely enter this domain. Regulatory technology (#Regtech ), full KYC solutions, and digital wallets are other areas where entrepreneurs can find opportunities.

- All these developments would not have been possible without the government's support for the digital economy through Saudi Vision 2030 and the Financial Sector Development Program (FSDP). As an entrepreneur in this space, it's crucial to stay updated on these advancements and leverage them to create innovative solutions that cater to the evolving needs of the market.

Thank you, Mohamed, for sharing your insights into the world of invoice financing and crowdfunding. We wish you continued success with Lendo .