Sanad Finance raises SAR 56 million for Sharia-compliant small-business financing
Khalil
The Riyadh fintech funds shops and workshops that banks often turn away, using sales data instead of a long credit history.
Sanad Finance, a Riyadh fintech founded in 2021, has raised SAR 56 million in a Series A round led by a regional growth fund, with its seed investors joining again.
The problem it solves
Many small shops, salons and workshops have healthy sales but little credit history, so banks ask for guarantees they cannot give. Sanad looks at point-of-sale and invoice data to judge whether a business can repay.
How the product works
Financing is structured as murabaha: Sanad buys the stock or equipment and sells it to the business at a disclosed profit, paid back in monthly instalments over up to eighteen months.
What comes next
The company says it will use the round to open in Jeddah and Dammam and to hire a risk team. The test will be keeping defaults low as it lends to newer, smaller businesses.