Funding Souq, a Saudi-based Shariah-compliant crowdfunding and SME financing platform regulated by SAMA and the DFSA, has secured a strategic investment from Foodics, a leading restaurant operations and financial technology platform in MENA. The agreement, announced on 13 October 2026, makes Foodics a major investor in the current round. The partnership aims to expand embedded financing for small and medium enterprises in Saudi Arabia and the UAE.
Strategic Investment Supports Embedded Financing Growth
The investment combines Funding Souq's regulated financing infrastructure and SME credit expertise with Foodics' technology, data capabilities, and extensive market reach. Within the restaurant and hospitality sector, Funding Souq will extend its financing solutions to Foodics' network of tech-enabled merchants. The collaboration will use restaurant sales and performance data to support more informed credit assessment and financing that aligns with how these businesses operate.
Capital 2.0 and Automated Financing Expansion
The announcement coincides with Foodics' broader push into financial services through Capital 2.0, its automated financing solution for restaurants. Foodics intends to deploy US$100 million in financing through Capital 2.0 during its first year. The company is embedding access to capital within its restaurant technology ecosystem as part of a long-term ambition to become the future bank for restaurants and the hospitality sector.
Shariah-Compliant Financing Infrastructure
Funding Souq operates across two verticals: a marketplace that connects SMEs with institutional and retail private credit investors, and an infrastructure vertical that provides a regulated gateway to finance SMEs in Saudi Arabia. The platform offers term loans, invoice finance, and supplier finance through Shariah-compliant structures. Since its inception, Funding Souq has delivered market-leading net returns to private credit investors with a low single-digit default rate.
Leadership Comments and Regulatory Positioning
Martin Jaouni, Founder and CEO of Funding Souq, said the collaboration has created Saudi Arabia's first fully automated business loan, bringing together Foodics' deep reach in the restaurant and hospitality sector with Funding Souq's regulated financing infrastructure. Anas AlGhanim, Vice President of Investments and Corporate Development at Foodics, said Funding Souq has built a strong financing platform with significant potential to scale. He added that the investment supports Foodics' goal of making access to capital more seamless for its customers.
Platform Scale and Growth Trajectory
Funding Souq has built a community of more than 10,000 investors on its platform and is on track to facilitate US$1 billion in SME financing over the next three years. Foodics has processed more than 6 billion orders through its platform and raised a record US$170 million in its Series C round, making it one of the region's leading SaaS companies. These metrics highlight the scale and reach that both organizations bring to the embedded financing partnership.
Future Expansion Beyond Hospitality
While the initial focus is on the restaurant and hospitality sector, the partnership is intended to extend across every sector where SMEs remain underserved. Funding Souq plans to accelerate its embedded finance journey in both Saudi Arabia and the UAE. The investment also supports Foodics' ambition to evolve from restaurant technology into a broader financial services platform.
By combining Foodics' restaurant technology and data capabilities with Funding Souq's regulated, Shariah-compliant financing infrastructure, the partners aim to make capital more accessible to SMEs at the moment they need it. The collaboration signals a broader shift toward embedded finance in Saudi Arabia and the UAE, particularly in sectors where traditional credit remains difficult to access. If successful, the model could serve as a blueprint for scaling automated SME lending across the region.