IHC Acquires eFunder, Rebrands It as ‘Zelo’ to Boost SME Financing in UAE and Saudi

Dubai: Abu Dhabi-based investment powerhouse International Holding Company (IHC) has acquired SME financing platform eFunder, rebranding it as ‘Zelo’ as part of its strategy to expand alternative lending options for small and mid-sized businesses in the region.

Zelo, which originally launched in August 2020, offers receivables-based financing to help SMEs bridge working capital gaps. The platform provides digital-first liquidity solutions by converting approved invoices into cash within 24 to 48 hours, offering a much-needed alternative to traditional banking channels.

A Lifeline for SMEs

The acquisition comes at a critical time when SMEs across the UAE and Saudi Arabia continue to face delays of 60 to 120 days in receiving payments on approved invoices—hindering their cash flow and limiting operational flexibility.

“While SMEs represent over 95% of the UAE’s registered businesses and contribute more than half of the national GDP, access to timely financing remains a major challenge,” said IHC in a statement.

“Zelo is addressing this gap by offering fast, invoice-backed loans that empower business continuity and growth.”

IHC’s Strategic Move

Syed Basar Shueb, CEO of IHC, emphasized the importance of this move:

“SMEs are the backbone of a diversified and future-ready economy. Through our acquisition of Zelo, we’re proud to back a platform that removes one of the biggest barriers facing SMEs—timely access to working capital.”

Private Credit Gaining Ground

With bank lending rates still elevated, private credit has become increasingly important for businesses of all sizes. In a similar development, Sukna Capital in Saudi Arabia launched a new fund this week to expand alternative financing options for SMEs and startups.

The Middle East and North Africa (MENA) region currently faces an estimated $250 billion SME credit gap, making platforms like Zelo instrumental in addressing this financial shortfall.