IHC Doubles Down on Fintech with eFunder Takeover and Rebrand

Abu Dhabi-based International Holding Company (IHC) has bought UAE fintech eFunder, a fintech that solves working capital deficiency for small and medium-sized enterprises (SMEs), and renamed it to Zelo.

Regulated and licensed by the Financial Services Regulatory Authority of Abu Dhabi Global Market (ADGM), Zelo allows SMEs to release liquidity through the conversion of approved invoices into working capital within 24 to 48 hours. The fintech targets industries like construction, logistics, healthcare, industrial services, and oil and gas.

Key Highlights-

• IHC has acquired UAE fintech eFunder and rebranded it as Zelo
• Zelo enables SMEs to access working capital within 24–48 hours by converting approved invoices
• Since its launch in 2020, Zelo has processed over 9,000 transactions and released more than USD 200 million in funding

The acquisition is in line with IHC's increasing focus on fintech and financial infrastructure. "Fintech lenders such as Zelo are filling in niches where the traditional banks are reluctant to tread, providing fast and credible financial solutions to SMEs," an industry watcher said. The financial gap for SMEs across the Middle East and North Africa is close to USD 250 billion.

Also Read: Why Global Investors Want The Most High Surging Asian MSMEs

Even with more than 95 percent market share of UAE registered businesses and contributing over half of its GDP, most SMEs suffer from payment delays ranging up to 60 to 120 days. Zelo seeks to overcome this delay by offering working capital in near-instant time.

Zelo, which was established in August 2020, has already processed over 9,000 transactions and released over USD 200 million in capital. The company will remain headed by co-founders Dhanush Arjun and Deepak Sekar.

"Through the partnership with IHC, we look forward to accelerating our mission to empower SMEs in the region," said co-founder Dhanush Arjun, pointing to the company's growth path following the acquisition.