Abu Dhabi-based Zelo, formerly known as eFunder, has announced a significant capital injection of $715 million from its parent company, International Holding Company (IHC). The funding is earmarked to expand its financing services and provide critical liquidity for small and medium-sized enterprises (SMEs) across the region.
Injecting Liquidity Into B2B Supply Chains
Zelo’s core mission is to solve a persistent challenge for smaller businesses in the Middle East: lengthy payment delays and difficulty accessing traditional forms of financing. The platform provides SMEs and mid-tier suppliers with liquidity by converting approved invoices from government entities, large corporates, and major regional businesses into working capital within one to two days.
“We’re trying to introduce liquidity into B2B supply chains,” Zelo CEO Dhanush Arjun told Reuters.
“By doing that, we’re trying to enhance the strength and resilience of these supply chains to support SMEs… and increase the liquidity that they can enhance and support GDP growth.”
Ambitious Growth and Proven Traction
The fintech platform has already demonstrated significant traction, having funded more than 12,000 transactions worth $225 million across diverse sectors including oil and gas, construction, infrastructure, and retail. With this new capital, Zelo is targeting an ambitious $1 billion in gross financing volume by 2026.
Arjun noted that IHC’s substantial support would help “fast-track” more anchor partnerships, enabling Zelo to tap into a wider supply-chain network and scale its operations rapidly.
Addressing a Multi-Billion Dollar Market Gap
The move by IHC underscores the vast, underserved market for SME financing in the region. A World Bank report estimated the funding gap for SMEs in the Middle East to be between $210 billion and $240 billion, with other estimates putting the figure even higher.
“Our commitment to Zelo signals confidence in the region’s ability to originate institutional-grade receivables and to play a larger role in the global private credit market,” said IHC chief executive Syed Basar Shueb.
About Zelo
Zelo is a fintech platform based in Abu Dhabi and regulated by the Abu Dhabi Global Market (ADGM). Acquired by International Holding Company (IHC) earlier this year, Zelo provides working capital solutions to SMEs by converting their approved invoices into immediate cash flow. The company aims to strengthen regional B2B supply chains by bridging the liquidity gap for small and medium-sized businesses.
Source: AGBI
