New York-headquartered Salaryo, a fintech start-up that provides financing for small business and freelancers, has raised $5.8 million in a new funding round that includes Dubai-based KEN Investments.
The fresh capital brings the company’s total funding to $12 million, which will be used to scale up lending activity and launch new business banking products in 2021, the company said in a statement on Wednesday.
The other investors who have participated in the latest equity round are Variant Investments, Techstars Ventures and venture capital investor Michael Ullmann’s investment group.
Launched in 2018 in New York City, Salaryo offers flexible and affordable financing and digital banking products to small firms. It operates a research and development centre in Tel Aviv, Israel.
According to KEN Investments, which has offices in Dubai, Japan, Germany and Taiwan, it is the first time that they have invested in a company that utilises Israeli technology. The company has been investing into start-ups in Europe and Asia for more than a decade.
“It took both sides a while to close this investment… It is the first time we invest in Israeli technology, and Salaryo tackles a large, fast-growing market opportunity of US small businesses,” said Kentaro William, CEO and manager of Ken Investments.
Yair Levy, CEO and co-founder of Salaryo, also highlighted that it’s the first time they have attracted support from a UAE fund.
“The announcement by the leaders of the United Arab Emirates and Israel about a peace treaty being negotiated between the two countries has helped to remove technical barriers that have so far delayed the completion of the investment transaction,” Levy said.
“This pioneer investment pairs Israeli technological innovation with the UAE’s financial expertise and international outreach. The combination of both has endless potential. I look forward to more transactions like this in the near future,” he added.
So far, Salaryo has extended funds to hundreds of entrepreneurs, including freelancers and small business owners in the United States.
Since early March 2020 the value of loan applications processed has reached $60 million, offering relief to hundreds of small American business owners.
(Writing by Cleofe Maceda; editing by Seban Scaria)
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