Latest news with #SFDF
Wamda
3 days ago
- Business
- Wamda
Sukna Capital secures CMA approval to offer flexible, non-dilutive SME financing
Saudi Arabia-based VC Sukna Capital has received CMA approval to launch the Sukna Fund for Direct Financing (SFDF), an open-ended, Sharia-compliant direct lending fund in MENA, unlocking flexible, non-dilutive capital access for SMEs across the Kingdom. The fund allows periodic investor liquidity and gives founders access to asset-backed financing without giving up equity, addressing critical funding gaps in underserved sectors and supporting Vision 2030 goals to boost SME lending. Backed by Sukna's proprietary tech infrastructure and a veteran team with over $6.5B in transaction experience, SFDF reflects a founder-aligned approach to private credit, with a mission to modernise institutional financing for the region's high-growth businesses. Press release: Sukna Capital has received official approval from the Saudi Capital Market Authority (CMA) to launch the Sukna Fund for Direct Financing. SFDF is KSA's first open-ended, sharia compliant direct lending fund—marking a regulatory milestone for non-bank financing in MENA. As a CMA-licensed alternative asset investment platform, Sukna is now authorised to offer institutional investors access to a vehicle that provides non-dilutive, scalable financing for small and medium-sized enterprises (SMEs) seeking accelerated growth without equity dilution. Unlike traditional private credit vehicles, the open-ended fund structure enables investors to enter and exit at regular intervals, offering periodic liquidity with no long lock-up periods. For SMEs, this unlocks access to asset-backed capital while enabling founders to retain complete ownership and avoid the limitations of equity financing. Fares Bardeesi, CEO of Sukna, described the launch as a pivotal step in expanding institutional credit access for underserved sectors across the region. With over two decades of experience in corporate finance and private investments, Fares has led more than USD 6.5 billion in transactions across real estate, technology, and healthcare. As a co-founder of Sukna Ventures and the architect behind Sukna's evolution into structured private debt, he emphasised the urgent need to close funding gaps for both traditional and innovation-led SMEs. 'As of Q3 2024, SME lending in Saudi Arabia is estimated to be SAR 329.23 billion—just 9.1% of total bank credit—well below the Vision 2030 target of 15 to 20 percent,' he noted. 'SFDF is designed to address that gap through institutional, regulator-aligned capital solutions tailored to the needs of high-potential businesses across sectors.' This announcement comes at a pivotal moment, as the Middle East's tech and startup landscape undergoes rapid transformation, while traditional funding structures have not kept pace with founders' evolving needs. Waleed Alballaa, Managing Partner of Sukna Ventures and member of the Fund's Investment Committee, underscored the importance of timing: 'The tech and startup ecosystem has matured significantly, but financing structures simply haven't caught up. We designed SFDF to meet founders where they are—with the right capital, at the right time, and without the red tape.' Waleed brings his unique, founder-centric perspective to the fund, shaped by over two decades at the intersection of technology, operations, and venture capital across Silicon Valley and Saudi Arabia. His deep technical foundation is complemented by a decade dedicated to venture capital, during which he was instrumental in launching multiple investment vehicles and serving on the boards of several prominent technology companies. His holistic experience gives him a firsthand understanding of the capital gaps that can hinder high-growth companies. The launch of SFDF builds on the success of Sukna Ventures, the firm's technology-focused investment arm, known for backing bold, high-growth startups in mobility, logistics, and digital marketplaces. Sukna also leverages proprietary technology to streamline loan origination, risk assessment, portfolio monitoring, and investor reporting, ensuring a transparent and scalable experience for both borrowers and institutional capital partners.
Fintech News ME
19-06-2025
- Business
- Fintech News ME
OCTA Secures US$20 Million to Expand SME Financing in Saudi
OCTA, a fintech platform based in the UAE, has secured a US$20 million credit facility from the Sukna Fund for Direct Financing (SFDF). The funding will support OCTA's goal to offer short-term working capital financing directly through its platform, enabling SMEs in Saudi Arabia to access credit more easily. Unlike traditional lending models that require separate applications and banking integrations, OCTA enables financing from within a business's invoicing and payment systems. This allows companies to access funds as soon as invoices are issued or payables are due, helping to avoid the common 60 to 90 day cash flow delays. 'Most SMEs don't fail because they lack revenue, they fail because their cash is locked up,' said Jon Santillan, Co-Founder and Chief Executive Officer of OCTA. 'Our partnership with Sukna Fund allows us to bring financing directly into the heart of daily operations, where businesses need it most.' The credit facility is delivered through OCTA's proprietary platform, which integrates with a company's existing financial systems. Repayments are automated and linked to real-time collections or scheduled payouts, aligning funding with actual cash flow and reducing the operational burden on SMEs. Since launching in 2024, OCTA has positioned itself as a contract to cash platform, managing invoicing, payments, collections, and now embedded credit. The platform is designed to improve SME liquidity, streamline operations, and reduce reliance on traditional financial institutions.
