YAKUB ABDULRASHEED – Saudi Arabia-based fintech company Funding Souq has secured a strategic investment from Foodics, a leading restaurant management and financial technology platform in the Middle East and North Africa (MENA).
The partnership aims to expand financing opportunities for small and medium-sized enterprises (SMEs), particularly businesses in the restaurant and hospitality sector.
The investment makes Foodics a major investor in the funding round, although the amount invested and the ownership stake acquired remain undisclosed.
The partnership will combine Funding Souq’s regulated financing infrastructure with Foodics’ technology and business data to help restaurants access financing more efficiently.
According to Funding Souq founder and CEO Martin Jaouni, the collaboration brings together both companies’ strengths to deliver capital to merchants when they need it most.
What to Know About Funding Souq
Founded in 2020 by Martin Jaouni, Funding Souq is a Saudi Arabia-based fintech company that operates a Shariah-compliant crowdfunding and SME financing platform.
The company provides financing solutions, including business loans, invoice financing and supplier financing, to businesses in Saudi Arabia and the United Arab Emirates (UAE).
Its operations are regulated by the Saudi Central Bank (SAMA) and the Dubai Financial Services Authority (DFSA).
Funding Souq aims to address the financing challenges faced by smaller businesses by providing access to capital through its digital platform. The company has attracted more than 10,000 investors and is targeting $1 billion in SME financing over the next three years.
Its investment partnership with Foodics is expected to support its growth and extend its financing services to a broader network of businesses.
What is Foodics and What Does It Do?
Foodics is a restaurant operations and financial technology company serving businesses across the MENA region. Its technology helps restaurants manage essential business activities, including sales, orders, payments, inventory and other operational processes.
By integrating these functions into a digital platform, Foodics enables restaurant operators to monitor performance and manage their businesses more efficiently.
Beyond restaurant management technology, Foodics is expanding into financial services to address the capital requirements of businesses operating within its ecosystem.
Its investment in Funding Souq reflects this broader ambition to combine restaurant technology with financing solutions.
Anas AlGhanim, Foodics’ vice president of investments and corporate development, said the company sees potential in Funding Souq’s ability to serve more SMEs.
He explained that the investment would help combine both companies’ capabilities to expand financing services and make access to capital more seamless for customers.
How the Partnership Will Expand Financing Access
The partnership will enable Funding Souq to extend its financing solutions to restaurants and hospitality businesses within Foodics’ customer network.
By leveraging restaurant sales and operational data, Funding Souq expects to make more informed assessments of businesses’ creditworthiness and offer financing better suited to their operating needs.
This arrangement is an example of embedded financing, which involves integrating financial services into a platform businesses already use rather than requiring them to approach a separate provider independently.
Foodics’ technology and customer reach will complement Funding Souq’s financing infrastructure and SME credit expertise.
According to Jaouni, “Together we have created Saudi Arabia’s first fully automated business loan,” combining Foodics’ reach across the restaurant and hospitality sector with Funding Souq’s regulated financing capabilities.
He added that the company intends to extend its embedded finance strategy across sectors where SMEs remain underserved in Saudi Arabia and the UAE.
Foodics Expands Its Financial Services Ambitions Through Capital 2.0
The investment comes as Foodics expands its financial services offering through Capital 2.0, an automated financing solution designed for restaurants.
The company intends to deploy $100 million in financing through the initiative during its first year, demonstrating its commitment to integrating access to capital into its restaurant technology ecosystem.
Foodics’ broader ambition is to move beyond providing restaurant management software and develop into a more comprehensive financial services platform for the hospitality industry. The company ultimately aspires to become the future bank for restaurants and hospitality businesses.
By combining operational technology with financing services, Foodics aims to help restaurant owners address funding needs associated with daily operations and business expansion.
However, the planned $100 million deployment through Capital 2.0 is separate from the strategic investment in Funding Souq, whose financial terms have not been disclosed.
Why the Investment Matters for SMEs
The partnership could help address a longstanding challenge for small and medium-sized businesses, such as obtaining timely financing to support daily operations and expansion.
Smaller businesses may need capital to purchase supplies, pay vendors, acquire equipment or open additional locations, but conventional financing processes can be difficult to navigate.
By using restaurant sales and performance data to support credit assessments, the partnership could help financing decisions better reflect how businesses operate.
It also offers Funding Souq an opportunity to reach more potential borrowers through Foodics’ established customer network, while strengthening Foodics’ position in restaurant-focused financial services.
Funding Souq’s target of facilitating $1 billion in SME financing over the next three years further highlights its growth ambitions.
Although the investment amount and ownership stake remain undisclosed, the partnership represents a strategic step towards expanding access to Shariah-compliant financing and integrating financial services more closely with the technology businesses use every day.
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