News Summary

Revenue-based financing (RBF) has become an increasingly popular alternative to traditional venture capital for startups in the Middle East and North Africa (MENA) region. The model, which allows companies to raise capital without giving up equity, is particularly appealing to small and medium-sized enterprises (SMEs) struggling to access funds from traditional banking channels. CredibleX, a startup in Abu Dhabi, has recently raised a $55 million seed round led by Further Ventures, showcasing the rising interest in RBF in the region. The company provides working capital to SMEs by partnering with large aggregators and using platforms like Talabat, enabling quick credit decisions and efficient repayment processes. Since its inception in March 2024, CredibleX has issued over AED 100 million (US$27 million) in financing to SMEs. This trend reflects a broader move towards non-dilutive financing options, offering greater flexibility and support to startups in MENA.