Saudi fintech startup Lean Technologies is exploring new investments as it seeks to expand its product offerings ahead of a possible public listing.
The company aims to grow beyond open banking and finance by investing in other businesses that can help offer more solutions to clients, according to Chief Executive Officer Hisham Al-Falih.
Lean — which is backed by at least $100 million in disclosed venture funding from investors including General Catalyst — is seeing strong activity in remittances, cross-border payment flows and alternative credit solutions, and keeping an eye on opportunities in sectors like insurance, pensions and investments.
Open banking, which lets consumers easily share data with other financial institutions or third parties, and finance are currently the core of Lean’s business.
“There are massive under-penetrated opportunities that we hear about from our customers,” Al-Falih said in an interview in Riyadh. “We feel we have a very strong right to play and right to solve these pain points. That’s really what is guiding our focus.”
Expanding its range of products is Lean’s main priority as the company lays the groundwork for a potential initial public offering in the future, he said. Al-Falih sees both Saudi and regional markets as “very attractive” but has yet to make any decision on IPO timing.
Lean has benefited in recent years as Saudi Arabia and the United Arab Emirates develop regulatory frameworks to promote open banking and digital finance to help drive their economic diversification agendas.
Financial technology in general is seen as a critical sector for development for both countries as they also look to drive innovation and entrepreneurship, while making it easier to live, work and do business in the Middle East.
Startups in the Middle East raised a record $1.2 billion in funding last quarter, defying a collapse in broader emerging markets. That performance was fueled by so-called mega deals worth more than $100 million and was backed by strong interest in fintech companies.
Lean, which provides open finance capabilities for more than 300 businesses, remains focused on expanding within its core markets of Saudi Arabia and the UAE, though may look to grow into new countries in the years ahead, according to Al-Falih.
He characterized the company as being “well funded” after raising almost $70 million in a Series B round last year. “We have a good balance sheet that sees us not really needing to fundraise to sustain our core business.”
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