Sharia compliant P2P-lending platform Beehive has secured a $5m Series A led by Riyad TAQNIA fund.
The investment round was supported by the Mohammed Bin Rashid Fund (MBRF), which is the financial arm of Dubai SME, and several other regional investors.
Launched in 2014, Beehive uses technology to directly connect businesses with investors, helping to give SMEs access to lower cost finance quicker, while offering investors attractive returns and diverse portfolio risk. Dubai-based Beehive has facilitated more than $35m to over 200 funding requests, and has registered more than 5000 investors.
Business financing is not the only offering, with the company also giving borrows the chance for invoice financing. A borrower is able to get a short-term financing solution for outstanding invoices, so cashflow is not impacted.
The capital injection will be used to expand the company’s digital modal further, and drive the product development and marketing.
Riyad Capital acting CEO Adel Al-Ateeq said, “Beehive has attracted us as the pioneering regulated P2P lending platform in MENA. It has engaged in building strategic agreements with government and large corporates in the UAE, where it fulfils a clear financing need. We are particularly excited to support the company’s expansion into Saudi Arabia where it would finance Saudi SMEs.”
Following the transaction, Dubai SME CEO Abdul Baset Al Janahi will join Beehive’s board of directors.
This new round of capital brings total funding raised by Beehive to $10.5m since its launch.
Copyright © 2017 FinTech Global
