Pemo, a spend management platform focused on small and medium-sized enterprises (SMEs), has received in-principle approval for a Stored Value Facility (SVF) license from the Central Bank of the UAE (CBUAE). This milestone will enable Pemo to digitally hold and manage business funds, streamlining financial operations for its growing client base. The company anticipates completing the full licensing process in the coming months, which will allow it to expand its offerings to include digital wallets and dedicated fund-holding capabilities specifically designed for SMEs.
With SMEs constituting approximately 90% of operating companies in the UAE and contributing over 60% of the non-oil GDP, the need for improved access to financial resources is critical. Currently, these businesses receive only about 10% of total bank funding, often relying on outdated banking systems to manage their cash flow. Pemo aims to address this gap by providing faster access to funds and a consolidated platform for managing corporate expenses, thereby reducing the dependency on traditional banking processes.
Since its inception in 2022, Pemo has rapidly scaled to support over 6,000 businesses, including notable clients such as Talabat and Sodexo. Co-Founder and CEO Ayham Gorani emphasized that the company was built to cater to the unique needs of SMEs in the region. The SVF license will not only deepen Pemo's support for these businesses but also facilitate the introduction of new financial products that simplify business finance management. The company is poised to announce further partnerships and expanded offerings in the near future, signaling a robust growth trajectory.
As Pemo moves closer to finalizing its SVF license, it stands to reshape the financial landscape for SMEs in the UAE. This development highlights a growing recognition of the critical role that fintech solutions play in enhancing financial accessibility and efficiency for smaller enterprises, which are often underserved by traditional banks. Investors should observe how Pemo's advancements could influence competitive dynamics within the fintech sector and potentially attract further capital into the space.
With SMEs constituting approximately 90% of operating companies in the UAE and contributing over 60% of the non-oil GDP, the need for improved access to financial resources is critical. Currently, these businesses receive only about 10% of total bank funding, often relying on outdated banking systems to manage their cash flow. Pemo aims to address this gap by providing faster access to funds and a consolidated platform for managing corporate expenses, thereby reducing the dependency on traditional banking processes.
Since its inception in 2022, Pemo has rapidly scaled to support over 6,000 businesses, including notable clients such as Talabat and Sodexo. Co-Founder and CEO Ayham Gorani emphasized that the company was built to cater to the unique needs of SMEs in the region. The SVF license will not only deepen Pemo's support for these businesses but also facilitate the introduction of new financial products that simplify business finance management. The company is poised to announce further partnerships and expanded offerings in the near future, signaling a robust growth trajectory.
As Pemo moves closer to finalizing its SVF license, it stands to reshape the financial landscape for SMEs in the UAE. This development highlights a growing recognition of the critical role that fintech solutions play in enhancing financial accessibility and efficiency for smaller enterprises, which are often underserved by traditional banks. Investors should observe how Pemo's advancements could influence competitive dynamics within the fintech sector and potentially attract further capital into the space.
Source: Fintech News ME
