Sukna Capital Financial is preparing to launch a new venture capital fund with a target size of $100 million, the company announced on the sidelines of LEAP 2026. The move reflects an expanded commitment to financing startups and investing in technology and innovation across Saudi Arabia and the wider region. The planned fund will be the company's second venture capital vehicle after it fully committed its existing $50 million core fund.
A Second Venture Capital Fund
The new fund carries a target capital commitment of $100 million, double the size of the firm's existing core venture capital fund. Sukna's Head of Asset Management, Sukhdev Hansra, confirmed the plans during LEAP 2026 and emphasized a focus on high-growth companies. The firm continues to target technology and innovation opportunities across Saudi Arabia and the wider Middle East and North Africa region.
A Diverse Investment Portfolio
Sukhdev Hansra explained that Sukna's investments extend beyond technology companies into a broad mix of sectors. Its portfolio includes software-as-a-service providers, artificial intelligence companies, industrial businesses, and acquisition financing transactions. The investment strategy also prioritizes early-stage technology opportunities in areas such as fintech, enterprise software, and advanced technologies.
A Broader Investment Ecosystem
Sukna Capital Financial operates multiple investment strategies, including venture capital, direct financing, real estate, and private equity. The firm maintains a clear focus on companies and sectors connected to digital transformation across the Middle East and North Africa. By integrating equity and debt solutions, Sukna aims to support companies from early-stage innovation through expansion and acquisition phases.
Scaling Direct Lending
Alongside its venture capital activities, Sukna Capital Financial is expanding its presence in direct lending. The company has invested approximately SAR 100 million through its debt fund so far and aims to raise another SAR 250 million within the next six months. This expansion reflects growing interest in private credit for small and medium-sized enterprises and technology companies entering growth phases.
Evergreen Lending Structure
Hansra noted that Sukna currently operates the first and only open-ended direct lending fund in the Saudi market, structured as an evergreen vehicle. The open-ended model allows lending activity to continue without a fixed maturity or predetermined fund life, depending on available opportunities and investment capacity. Its strategy is designed to help close the SME financing gap by targeting technology-enabled firms, traditional growth companies, and venture capital or private equity funds.
Expanding SME Financing
Hansra believes the Saudi market offers substantial room for direct financing, particularly in the small and medium-sized enterprise segment that Sukna focuses on. As the SME sector expands across the Kingdom, demand is rising for funding sources that match different stages of company growth. Sukna provides non-dilutive financing to support expansion without requiring founders to give up additional ownership.
Combining Equity and Debt
Hansra stressed the importance of combining venture capital with debt as technology companies move toward more mature stages. Early-stage startups rely primarily on equity funding, while debt becomes more relevant as revenues grow and operating models become clearer. Building a strong SME market requires financing options beyond equity so companies can transition from startups into established growth businesses.
Private Credit Growth Outlook
Hansra pointed out that debt represents approximately 80% of markets worldwide, underscoring the importance of private credit. Expanding Saudi Arabia's private credit market can provide an additional financing layer for companies that have outgrown venture capital alone. The combination of equity and debt gives businesses wider choices in managing their capital structures during expansion and larger-scale operations.
Sukna Capital Financial's plans reflect a broader evolution from startup equity financing toward a full spectrum of growth-stage funding solutions. The $100 million venture capital fund and the direct lending expansion target different stages of a company's lifecycle. These moves are expected to increase the firm's managed capital and deepen its investment footprint across Saudi Arabia and the wider region.