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The UAE’s fintech ecosystem has reached a major milestone in the B2B lending space. Comfi, a leading B2B embedded finance platform, has successfully raised $65 million in a Pre-Series A funding round. This massive capital injection, comprising both equity and debt, is set to accelerate the adoption of SME BNPL (Buy Now, Pay Later) solutions across the MENA region, addressing the chronic cash-flow constraints that often stifle small and medium-sized enterprises.
The funding round saw a diverse mix of international and regional backers. The equity portion was led by Iliad Partners, with significant participation from Yango Ventures and Raw Ventures, marking their strategic entry into the Middle East market. Complementing the equity is a sophisticated debt structure, including a credit facility from Partners for Growth and a mezzanine facility orchestrated by Shorooq, as well as a prominent family office.
Editor’s take: SMEs often act as the unpaid banks for larger corporations, waiting 60 to 90 days for invoices to be cleared. By securing $65M, Comfi is providing a critical liquidity bridge that allows SMEs to stop worrying about cash-flow cycles and focus on inventory and expansion.
How Comfi’s SME BNPL Works
Founded in 2023, Comfi was built to solve a specific, painful problem: the extended B2B payment cycle. In traditional trade, suppliers often have to wait 90 days to receive payment, effectively tying up their working capital.
Comfi’s platform integrates directly into the sales process, allowing suppliers to offer flexible payment terms while ensuring they get paid almost instantly.
Core Features of the Comfi Platform
- Instant Liquidity: Suppliers receive payment on their invoices within 24 hours, even if the buyer opts for a 90-day term.
- Risk Mitigation: Comfi uses advanced underwriting and risk capabilities to assess buyers, protecting suppliers from bad debt.
- Seamless Integration: As an embedded finance provider, Comfi’s tools sit directly within the supplier’s checkout or invoicing workflow.
- Scale and Reach: Having already processed over 15,000 invoices, the platform has proven it can handle the high-volume needs of regional trade.
Strategic Funding Breakdown: Equity, Debt, and Mezzanine
This $65M round is notable for its complexity, reflecting the maturity of the UAE’s venture debt market.
| Funding Component | Provider | Impact |
| Equity (Lead) | Iliad Partners | Product development and regional expansion. |
| Equity (New Entrants) | Yango Ventures & Raw Ventures | Global tech expertise and market validation. |
| Credit Facility | Partners for Growth | Scaling the loan book to serve more SMEs. |
| Mezzanine Facility | Shorooq & Family Office | Strategic capital for long-term growth. |
What This Means for the UAE and MENA Fintech Space
At UAE FintechVibes, we analyze the ripple effects of major funding rounds. Comfi’s $65M raise is more than just a company success story; it is a signal of a maturing B2B digital economy.
The Institutionalization of Venture Debt
The inclusion of specialized debt providers such as Partners for Growth and Shorooq indicates that the UAE is becoming a sophisticated hub for venture debt. This allows fintechs like Comfi to scale their lending capacity without excessively diluting their equity, a sign of a healthy, multi-layered financial ecosystem.
SMEs as the New Fintech Frontier
For a long time, fintech was synonymous with retail banking. We are now seeing a massive shift toward SME BNPL. By addressing the working capital gap, Comfi is enabling 90% of UAE businesses, which are SMEs, to compete more effectively with larger conglomerates.
Strengthening the Embedded Future
The Pre-Series A tag on such a large round suggests investors believe the embedded finance market is vast. By integrating financing at the point of sale, Comfi reduces the friction associated with traditional bank loans, making credit a feature of trade rather than a separate, bureaucratic process.
Conclusion
Comfi’s $65 million raise is a transformative moment for SME BNPL in the region. As the company prepares to scale its underwriting and risk capabilities, it is setting a new standard for how B2B trade is financed in the Middle East. For suppliers and buyers alike, the message is clear: the days of paralysis from 90-day payment cycles are coming to an end. With the support of global and regional heavyweights, Comfi is ensuring that the UAE remains at the absolute forefront of the global embedded finance revolution.
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