Zelo Secures $715M from IHC to Expand SME Financing Platform

Abu Dhabi-based fintech Zelo, previously operating under the name eFunder, announced on Thursday that it has raised $715 million in funding from its parent company, International Holding Company (IHC). The capital injection is intended to accelerate Zelo’s efforts in providing financial solutions for small- and medium-sized enterprises (SMEs) across the region.

Zelo specializes in offering liquidity to small businesses and mid-tier suppliers by turning approved invoices from government bodies, large corporations, and prominent regional firms into immediate working capital. This process allows businesses to access funds within one to two days, a significant improvement over traditional payment cycles.

Many smaller companies in the Middle East face prolonged delays before receiving payment for goods and services. These delays often limit their ability to secure conventional financing, leaving a critical gap in operational funding. Zelo’s platform aims to bridge this gap by providing a faster and more accessible source of liquidity.

Since its inception, Zelo has facilitated more than 12,000 transactions valued at approximately $225 million. Its services span diverse industries, including oil and gas, construction, infrastructure, and retail. Looking ahead, the company aims to reach a gross financing volume of $1 billion by 2026.

The need for SME financing in the Middle East is substantial. According to a World Bank report, the funding gap for small- and medium-sized enterprises in the region ranges from $210 billion to $240 billion, with some estimates suggesting even higher figures. This underlines the critical role of innovative financing solutions like those offered by Zelo.

Earlier this year, IHC acquired Zelo, reinforcing the company’s strategic backing. Zelo operates under the regulatory oversight of Abu Dhabi Global Market (ADGM), ensuring compliance with local financial regulations while offering reliable and secure financing solutions.