Foodics has made a strategic investment in Funding Souq, strengthening the relationship between the restaurant technology company and the Shariah-compliant small-business financing platform, according to a press release shared with Finance News International. The investment will support Funding Souq’s expansion across Saudi Arabia and the United Arab Emirates.
The financing relationship predates the investment announcement. When Foodics introduced Capital 2.0 in September, it identified Funding Souq among the licensed partners providing Shariah-compliant financing to its Saudi customers. The new investment adds an ownership relationship to that existing arrangement.
Under the collaboration described in the October release, Funding Souq will extend financing services to Foodics’ restaurant customer network. Restaurant sales and operating performance data will inform credit assessments, connecting the financing provider with information generated through merchants’ day-to-day use of Foodics’ technology.
Martin Jaouni, Funding Souq’s founder and CEO, said: “We're delighted to partner with Foodics. Together we have created Saudi Arabia's first fully automated business loan, bringing Foodics' deep reach across the restaurant and hospitality sector together with our regulated financing infrastructure to deliver capital to merchants the moment they need it. It also marks an important acceleration of our embedded finance journey, one we intend to extend across every sector where SMEs are underserved, in both Saudi Arabia and the UAE.”
Restaurant Data Underpins Capital 2.0
Foodics launched Capital 2.0 on September 14 at Money20/20 Middle East in Riyadh. The company said the service uses restaurant performance data and an artificial intelligence underwriting layer to identify businesses that qualify for financing. Its first-year deployment target is approximately $100 million (SAR 375 million).
Eligible operators can select financing terms and complete the process digitally, according to Foodics. The company says funds are disbursed within 24 hours after approval.
The September announcement outlined financing from approximately $5,333 (SAR 20,000) for working capital to $533,333 (SAR 2 million) or more for expansion. It also identified supplier invoice factoring among the supported uses. Repayments are collected through deductions from daily settlements, according to the company.
Foodics’ current Capital webpage names Funding Souq alongside other Saudi Central Bank-licensed financing partners. The arrangement connects Foodics’ restaurant software with external financing providers, while its payment services are supplied through Foodics Pay, which the company identifies as separately licensed and supervised by the Saudi Central Bank.
Funding Souq’s Saudi authorization is independently documented. The Saudi Central Bank announced its license to provide debt-based crowdfunding in April 2024. The central bank’s licensed-entity directory also lists Funding Souq for debt crowdfunding under that activity.
In Dubai, the Dubai Financial Services Authority’s public register lists Funding Souq Limited as a Dubai International Financial Centre company licensed since May 21, 2020. Its permissions include operating a crowdfunding platform, with endorsements covering retail clients, client assets, and an Islamic window.
Expansion Targets Remain Ahead
Funding Souq said in the October announcement that its platform has a community of more than 10,000 investors and that it is on track to facilitate $1 billion in SME financing over the next three years.
Anas AlGhanim, Foodics’ vice president of investments and corporate development, said: “Funding Souq has built a strong financing platform with significant potential to scale and serve a broader segment of SMEs. We see this investment as an opportunity to support the company’s next phase of growth, while also bringing together Funding Souq’s financing capabilities and Foodics’ technology ecosystem to expand financing services and make access to capital more seamless for our customers.”
Foodics has previously raised external capital for its own expansion, including a $170 million Series C round announced in April 2022, led by Prosus and Sanabil Investments.
