Foodics Invests in Funding Souq, Targeting $100 Million While the Platform Targets $1 Billion

Saudi restaurant tech platform Foodics has invested in Funding Souq, an Islamic financing company for small and medium enterprises (SMEs), becoming a lead investor in the round without disclosing its value, according to fintechgate.

Funding Souq is regulated by the Saudi Central Bank (SAMA) and the DFSA, offering Sharia-compliant financing to enterprises.

Under the partnership, the platform will expand financing services to Foodics restaurant merchants, utilizing sales and operational performance data to assess creditworthiness instead of traditional collateral.

Foodics plans to inject $100 million through its "Capital 2.0" product in its first year, while Funding Souq targets $1 billion in SME financing over three years.

What Do These Terms Mean?

Embedded Finance: Financing integrated within the digital platform that the merchant already uses, provided when needed without a separate bank application.

Islamic Finance: Financing structures that comply with Sharia law, containing no loan interest, and relying on sales, partnerships, and leasing.

Creditworthiness: An assessment of a borrower's ability and commitment to repay, based on their financial performance and past behavior.

Small and Medium Enterprises (SMEs): Companies whose size is measured by capital, employee count, or revenue, serving as the backbone of the region's economies.