Lammah, a Riyadh-based fintech startup, has secured one of the largest seed funding rounds in Saudi Arabia worth $5.5 million led by Waed and Raed Ventures.
In an interview with Al Arabiya, the CEO of Lamma, Smit Khutali, stated that the company’s activity is focused on providing bill financing solutions to small and medium-sized companies.
He stated that the equivalent of $25 million in small and medium-sized companies’ bills were paid this week, indicating that the word “lamma” colloquially means bringing people together, and this principle is at the core of our business, and we are the first market for supply chain financing in Saudi Arabia and soon we will expand in the region as well. .
He explained that Lammah brings together financing institutions and banks with suppliers to pay the payments owed to them by a buyer of the loan, by bidding on our platform.
And he indicated that one of Lamm’s largest clients is Aramco, for example, which has many suppliers, who can pay their payments through the platform without requiring a bank guarantee or bills of exchange.
He revealed that Lammah Company does not promise a specific return or interest rate to the financier, but rather this number is determined between financial institutions and companies according to supply and demand.
He explained that the largest beneficiary of these services is small and medium companies, as competition between investors and banks leads to reducing the interest owed by the beneficiary companies, and for us, we develop returns through fees that we impose on these operations by about 10 to 15 basis points in return for operating and managing this market.
He said that Lammah has about one billion dollars in the order books, and during the week we achieved operations with 100 million riyals, and the equivalent of 25 million dollars in invoices, and we also saw bills starting from 100,000 dollars, to reach 64 million dollars, expecting to achieve positive returns. beginning of next year.
He revealed that the proceeds of the financing round will be spent to obtain more customers, expand in the region and add new features to the platform, such as the option to buy now and pay later for small and medium companies and businesses, stressing that the platform expects to get returns by the end of the year and we expect to reap positive returns at the beginning of next year.