Inside the Saudi Fintech Opportunity: A Conversation with Ismail Amonette of IBEA

Attending Seamless KSA 2024, The Fintech Times had the chance to sit down with Ismail A. Amonette, founder and CEO of IBEA, a US-based startup aiming to transform the B2B payments space in Saudi Arabia. 

Amonette shared insights into IBEA’s journey, challenges and the bold decision to enter the Saudi market as an American startup. From his perspective, Saudi Arabia’s economic landscape, driven by technological advancement, presents unique opportunities for innovation in B2B payments.

Launching in Saudi Arabia

IBEA didn’t take the typical route for a US-based startup. Despite early investor pressure to launch in the US, Amonette saw Saudi Arabia as a more fertile ground for IBEA’s solution to late B2B payments.

“In Saudi Arabia, there’s so much buy-in right now when it comes to technology, when it comes to new solutions, there’s a lot of forward momentum,” Amonette explained. “I believe that if you’re coming in with a solution that’s solving a genuine problem, you can gain traction so much quicker here than anywhere else in the world.”

This confidence in the Saudi market has paid off, with IBEA forming significant partnerships with the Mohammed bin Salman Foundation, MISC, Plug and Play as well as the Ministry of Investments. These alliances have bolstered the startup’s credibility and reach.

Amonette, who has worked in Saudi Arabia’s executive landscape for over a decade, knew the market’s need for innovative B2B payment solutions.

“We’re one of the first American startups to use the Saudi ecosystem and everything that’s happening here in fintech to launch our company,” he said, noting IBEA’s unique approach to establishing itself within the Kingdom.

Late B2B payments

Amonette’s solution targets a critical issue plaguing B2B transactions in Saudi Arabia and beyond: delayed payments.

“Our company essentially automates the supplier payment life cycle, and we implement what is called buyer-centric supply chain financing, which is dynamic discounting,” he said.  “We enable suppliers to receive the funds off of the value of their receivables early in exchange for providing a discount fee back to the buyer.”

This model creates a mutually beneficial dynamic, enabling suppliers to have quicker access to capital while also generating revenue for buyers.

IBEA’s CTO, a veteran in payment automation, has brought decades of experience to the Saudi market, establishing IBEA’s platform as a modern solution to a persistent challenge. Amonette recounted inviting his investors to experience Saudi Arabia firsthand.

“When our CTO…put his feet on the ground, he was completely blown away. He said that he hadn’t seen a startup ecosystem like this in the past two decades. It feels like the early days of Silicon Valley,” Amonette also said.

This hands-on exposure underscored Saudi Arabia’s readiness for transformative technology, further validating Amonette’s decision to establish IBEA in Riyadh.

Vision 2030 and the importance of SMEs

IBEA’s approach actively supports Saudi Arabia’s Vision 2030, aiming for small and medium-sized enterprises (SMEs) to generate 90 per cent of the economy.  Many of these businesses face financial challenges due to reliance on high-interest loans and a lack of alternatives.

“Many of those SMEs that function as suppliers…they’re heavily reliant on supply chain financing from banks and from lenders, reverse factoring, and those types of things,” Amonette said. “But the risk that’s involved with that, plus the interest they have to pay, is so high that the insolvency rates are through the roof.”

IBEA’s dynamic discounting platform enables large companies to invest liquid capital directly into their supply chains, offering SMEs a stable, sustainable financing alternative. By reducing their dependency on traditional banks and lenders, SMEs can focus on growth.

Amonette explained how this system supports the Kingdom’s Vision 2030, which seeks economic diversification and resilience: “We’re trying to give those larger companies an incentive to put their capital back into the supply chain, creating a healthier dynamic with their suppliers,” he said, noting that many SMEs operate on narrow cash flow margins and benefit greatly from this model.

Attending Seamless

Seamless KSA has also provided IBEA with a vital platform to connect with logistics providers, procurement managers, and supply chain experts, enabling them to communicate the value of dynamic discounting to a wider audience.

“Supplier education is a really big piece of this, helping them to understand what the benefits are…you have to just go the extra mile in terms of how you’re educating the market to get them to buy in,” Amonette revealed.

This educational effort is beginning to resonate. “We’ve had quite a few companies come up to us and say, ‘Hey, as a supplier, this is something that we really need, and yes, we would be willing to accelerate those payments for discounts just to get paid,’” Amonette also said, describing the positive feedback IBEA received at the event.

The engagement with industry stakeholders at Seamless has also allowed IBEA to demonstrate the real demand and benefits of its solution, bridging the gap between traditional financing practices and the innovative approaches made possible through technology.

IBEA’s journey in Saudi Arabia highlights the potential for startups to drive economic transformation. With targeted partnerships, a commitment to educating the market as well as a focus on alleviating SME financial challenges, IBEA is positioned to support Saudi Arabia’s ambitious Vision 2030.

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