Zelo, a leader in private credit solutions based in the UAE and part of a global holding company, has secured a significant funding of $715 million (2.6 billion AED) aimed at enhancing its supply chain financing capabilities within the Middle East.
This funding represents one of the largest allocations for private credit in corporate financing across the region, enabling Zelo to improve access to liquidity for small and medium-sized enterprises (SMEs) in vital economic sectors.
Zelo specializes in providing financing solutions for suppliers and SMEs for payments owed by governments, major corporations, and leading regional institutions. By developing high-quality financing portfolios based on receivables linked to the largest buyers in the region, Zelo is transforming the regional supply chains into a new category of investable private credit assets, thereby increasing the region’s share in global private credit markets.
The credit gap affecting SMEs in the Middle East is estimated at around $250 billion, driven by long payment cycles and limited access to working capital. Zelo addresses these challenges by providing near-instant liquidity through invoice financing, which allows suppliers to free up trapped working capital and redirect it towards initiatives that foster growth, enhance production, secure larger contracts, and invest in capacity building and workforce development.
Expansion Plans
The new funding is set to accelerate Zelo’s expansion strategy, with the platform aiming to exceed $1 billion in total financing by 2026, representing more than a fivefold growth compared to current levels. The platform’s strategy is grounded in strategic partnerships with prominent entities, including the Emirates Development Bank, Trojan Group, and NMDG Group, which strengthen supply channels and enhance credit quality. Zelo operates in essential sectors such as oil and gas, construction, infrastructure, healthcare, retail, fast-moving consumer goods, industrial services, and marine business—all characterized by regular receivables and robust buyer ecosystems.
Support for Expansion
Said Basar Shoaib, CEO of the global holding company, stated: “Private credit has become one of the fastest-growing asset classes globally. Our commitment to support Zelo reflects our deep confidence in the region’s capacity to structure high-quality institutional receivables and bolster its role in global private credit markets. This investment will aid in Zelo’s expansion efforts and contribute to building a more resilient and diversified financial ecosystem in the region.”
Key Driver
Danush Arjun, CEO of Zelo, commented: “This funding marks a pivotal moment in Zelo’s growth journey. As we expand across the Gulf Cooperation Council countries, we are focused on building a scalable private credit infrastructure based on predictable real assets. The company remains dedicated to enabling SMEs and suppliers to access capital quickly and efficiently, reinforcing its role as a key driver of private credit growth in the region.”
It is important to note that Zelo is fully licensed and regulated by the Abu Dhabi Global Market (ADGM) Financial Services Regulatory Authority and has been operational since August 2020, developing a comprehensive digital experience from invoicing to collection, integrating its system with those used by major buyers, and providing banking guarantee solutions to support contractors involved in infrastructure and national development projects.