Zelo secures $715 million funding from its parent company, International Holding Company (IHC) to expand its small and medium-sized enterprise (SME) financing platform. The Abu Dhabi-based fintech announced the capital boost on December 4, 2025, aiming to enhance financial accessibility for SMEs across the Middle East. Focused on accelerating working capital availability, Zelo converts approved invoices into funds within one to two business days. This fast funding process helps address payment delays that often stall SME operations and growth.
Aiming for Market Expansion and Growth
The $715 million funding injection intends to support Zelo’s strategic expansion plans across key sectors such as oil and gas, construction, infrastructure, retail, and fast-moving consumer goods. With this capital, Zelo plans to strengthen relationships with anchor partners and expand its reach deeper into regional supply chains. The platform expects to finance about $1 billion in gross volume by 2026, building upon transactions worth $225 million already completed. This ambitious target illustrates Zelo’s commitment to empowering SMEs by providing faster and more reliable access to finance.
Tackling SME Financing Challenges
SMEs in the Middle East face substantial challenges, mainly due to delayed payments that can stretch between 60 to 120 days. These delays create cash flow gaps that impede business continuity and expansion. Traditional lending institutions often find it difficult to serve SMEs adequately, leaving a significant funding gap. Zelo aims to bridge this gap by advancing funds against invoices from large corporates, government entities, and major regional firms. This model not only improves liquidity but also reinforces the overall health and resilience of B2B supply chains in the region.
IHC’s Strategic Investment
Syed Basar Shueb, CEO of IHC, highlighted the firm’s confidence in the growing private credit market in the Middle East, indicating Zelo’s potential as a leading SME finance facilitator. Earlier in 2025, IHC acquired the platform, formerly known as eFunder, and rebranded it as Zelo. The acquisition aligns with global and local priorities to close the estimated $210-240 billion SME funding gap identified by the World Bank. Operating under the regulatory framework of Abu Dhabi’s ADGM financial center, Zelo aims to leverage IHC’s backing to pioneer digital SME finance solutions across the UAE and Saudi Arabia.
Digital-First Model with AI-Based Risk Scoring
Zelo operates a fully digital platform that uses artificial intelligence to assess risk and speed up credit decisions. This approach allows for scalable financing limits based on business performance, enabling SMEs to reinvest capital and maintain uninterrupted cash flow. The platform primarily serves the UAE and Saudi markets, where SMEs account for over 95% of businesses and contribute more than half of the GDP. By addressing pervasive funding delays and access issues, Zelo is poised to play a vital role in supporting SME growth and economic development in the region.
The new capital injection reinforces Zelo’s mission to transform small and medium-sized enterprise (SME) financing by making it faster, simpler, and more efficient, addressing one of the key challenges faced by the Middle East’s sizable SME sector.
