Latest news with #SMEfinancing
Wamda
6 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.
Independent Singapore
08-07-2025
- Business
- Independent Singapore
OCBC Targets $5B in loans for serial entrepreneurs
SINGAPORE: OCBC Bank has committed S$5 billion (US$3.9 billion) in financing by 2028 to support 'serial entrepreneurs.' These are founders who run multiple small and early-stage businesses in its main markets: Singapore, Malaysia, Hong Kong, and Indonesia. The bank's initiative began in Singapore in 2019. It officially launched in Malaysia in July 2025 after a nine-month pilot. OCBC plans to expand the programme to Hong Kong by the end of 2025 and to Indonesia afterwards. This is the first such offering by OCBC. It recognises that traditional SME financing models do not meet the needs of entrepreneurs managing several ventures. Rather than treating each business separately, OCBC considers the entrepreneur's overall history and group strategy. Each entrepreneur works with a dedicated relationship manager and receives help from in-house experts in cash management, corporate advisory, and wealth services. In a media statement, Anna Chang, head of middle market and services at OCBC's global commercial banking division, said, 'Serial entrepreneurs are often overlooked by the market. They face fragmented banking experiences, have to repeat their stories to multiple bankers, and receive limited credit despite strong overall performance.' Following a survey of more than 500 business owners from 2017 to 2018, OCBC discovered significant gaps in banking services for entrepreneurs managing multiple businesses. The survey found that one in three new businesses in Singapore was started by someone who already owned at least one company. Meanwhile, in Malaysia, almost half of OCBC's Malaysian SME clients were also found to be serial entrepreneurs. By the end of 2024, OCBC had provided over S$1.5 billion (US$1.1 billion) in financing to more than 1,800 serial entrepreneurs in Singapore and Malaysia, supporting over 8,000 companies. An additional S$3.5 billion (US$2.7 billion) is set aside to be deployed from 2025 to 2028. OCBC is also developing industry-specific solutions for sectors with high rates of serial entrepreneurship, including healthcare, education, and food and beverage. These solutions include working capital loans, venture funding, sustainable finance, M&A advisory, and cross-border expansion services. Chang noted that serial entrepreneurs often perform better in terms of credit than single-venture founders, with 30% lower default rates. 'Cross-portfolio visibility helps us spot early warning signs and reduce risk through communication,' she said. See also 9 local companies rank on Forbes Asia's 'Best Over A Billion' list Entrepreneurs will also be supported by a relationship manager who will help tailor specialists in cash management, corporate advisory, and wealth planning. 'At the heart of this is ambition,' Chang concluded. 'We've redesigned SME banking to empower founders to build, scale, and exit ventures with agility and confidence.'
