Foodics, a Riyadh-based F&B and retail technology startup, has launched a $100 million microloan fund to support small and medium-sized enterprises (SMEs).
The Saudi Arabia-based company’s new lending initiative Foodics Capital will support the Kingdom’s food and beverage merchants in the post-pandemic era through Sharia-compliant microloans, it said in a statement.
Depending on the need of customers, the Foodics Capital will extend micro-loans between $5,000 and $133,000 for which the F&B firm has come together with Saudi Arabia-based Maalem Finance, a Sharia-compliant consumer and SME financing provider.
“With cash flow being a critical pain point for small business owners right now, we wanted to be able to offer them a one-stop-shop that also covers their finance needs and enables them to accelerate their growth rate. A finance offering was always part of our vision to offer a true one-stop platform for owners to manage their business.”
The Saudi Arabia Monetary Authority has already approved the first phase of the fund, which will be provided to the current Foodics customers, who are pre-qualified for loans. The program will be rolled out across the kingdom by the end of 2020.
“This fund is set to revolutionize SME lending, as it will enable faster and more flexible lending than most of the lending facilities in the region,” according to Abdullah Tahboub, the chief financial officer of Foodics.
To avail this loan, interested SMEs can apply online, the initial approval will come within 24 hours and final consent will be granted within seven days, Mr.Tahboub said.
Foodics, a restaurant management platform which was founded in 2014, aims to aid owners to run their business more efficiently. The startup has offered services to more than 5,000 customers and processed over one billion orders through its platform, through which about $200 million of transactions, measured by gross merchandise value are generated each month.
The company has offices in Saudi Arabia, the UAE and Egypt, and is currently in the process of closing a series B funding round.
It raised $4 million in pre-Series B funding from Riyad Taqnia Fund, Tech Invest Com, Naseel Holding and Kuwait-based Faith Capital last year. It also raised $4 million in a Series A funding round in 2017.