Beehive, a Middle East digital SME lending platform, and Saudi Arabia-based crowdfunding platform Themar are set to merge, to address the SAR 500bn (£97.7bn) SME financing gap in Saudi Arabia.

Beehive confirmed it has signed a non-binding offer letter with Themar. 

Following the deal, which is subject to regulatory approval, Beehive will become established as a regulated fintech lender in the Kingdom of Saudi Arabia.

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The combined entity will provide entrepreneurs with digital and accessible funding solutions, offering a “scalable alternative” to traditional banking channels, the two companies said in a press statement.

Yousef H. Al Dabbagh, co-founder and chief operating officer at Themar, called the merger “a catalyst for advancing SME growth across Saudi Arabia”.

“Together, we will deliver innovative, Shariah-compliant, and accessible financing solutions that enable businesses to grow and contribute to the Kingdom’s economic transformation,” he added.

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Saudi Arabia’s Vision 2030 aims to expand SME lending and boost private sector growth to drive economic diversification.

“This M&A will be a milestone not only for Beehive but also for the broader SME ecosystem in Saudi Arabia,” said Pete Tavener, co-founder and group chief financial officer and chief operating officer of Beehive.

“By combining our capabilities with Themar’s local presence and regulatory standing, we will be creating a powerful platform that will transform SME financing in the Kingdom and support Vision 2030.”

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