Abu Dhabi’s e& enterprise, a subsidiary of technology and telecom company e&, has successfully finalized the acquisition of a majority stake in Dubai-based peer-to-peer lending platform Beehive.
The acquisition, valued at $23.6M, will see e& Enterprise owning 63.3 per cent of Beehive. This move aims to address the financing gap in the SME industry within the MENA region and will present growth opportunities for e& enterprise.
Beehive, which focuses on lending to small and medium-sized businesses, has facilitated loans worth more than AED 1.5B($408.4M) to SMEs. With the consolidation of Beehive into e&’s financials starting from August 2023, the platform will be able to scale up its operations and expand its offerings.
The UAE government has been actively supporting the growth of SMEs and start-ups, recognizing their crucial role in fostering a digital economy, according to The National Business News.
However, these enterprises still encounter challenges in accessing funding. The e& Enterprise and Beehive agreement present a significant opportunity to accelerate financing for SMEs throughout the region.
SMEs constitute around 98 per cent of companies in the UAE, making their development a priority for the government’s long-term strategy.
Initiatives like the one between Beehive and Emirates Development Bank, which provided an AED 30M funding facility, play a crucial role in supporting the growth and success of these businesses. EDB has allocated AED 30B for lending to over 13,500 companies in priority sectors by 2025.
