Zelo Offers Hope for Small Business Cash Flow

SMEs in the United Arab Emirates often face a cash‑flow gap that can stall operations, as payments on approved invoices may take months to arrive.

New ownership brings Zelo into focus

International Holding Company (IHC) recently bought eFunder, a private financing platform that has rebranded as Zelo. The change signals a fresh push to address the “working capital gap” that many small and medium‑size enterprises encounter.

Under its former name, Zelo began offering receivables‑based funding in August 2020. The model lets businesses turn approved invoices into working capital, often within 24 to 48 hours. Instead of waiting 60 to 120 days for a client to settle a bill, firms can access cash to cover payroll, purchase inventory, or fund new projects.

The platform operates under a license from the Abu Dhabi Global Market’s Financial Services Regulatory Authority (FSRA), a detail that matters to firms evaluating financing options. Zelo’s target sectors include construction, logistics, health care, industrial services, and oil & gas, where long payment cycles are typical.

Why the timing matters for UAE businesses

Small and medium‑size enterprises account for more than 95 percent of registered companies in the UAE and contribute over half of the nation’s gross domestic product. Yet a credit shortfall estimated at roughly US$250 billion across the Middle East and North Africa hampers growth.

IHC’s chief executive, Syed Basar Shueb, said, “SMEs are the backbone of a diversified and future‑ready economy.” The acquisition aims to provide a faster, more accessible source of capital for these firms.

Cash flow matters.

Zelo’s chief executive, Dhanush Arjun, added, “Zelo exists to eliminate the wait. The wait for payments, the wait for growth, the wait for opportunity.” That statement reflects the platform’s promise to shorten the interval between invoicing and cash receipt.

Beyond speed, Zelo emphasizes simplicity. The onboarding process is fully digital, and funding decisions are automated, allowing businesses to avoid prolonged cash‑flow delays. As a company’s performance improves, its financing limits can rise, offering a more responsive funding experience.

In practice, the service could matter most to a small contractor who has just completed a project but must still pay laborers and suppliers. With instant access to working capital, the contractor can keep the job site moving while waiting for the client’s payment, reducing the risk of project stalls.

The leadership team from eFunder will remain in place, with Dhanush Arjun as CEO and Deepak Sekar as COO. To date, the platform has processed over 9,000 transactions and deployed more than US$200 million in funding, indicating a growing footprint in the regional SMEs market.

While Zelo’s approach appears promising, the broader impact will depend on how quickly businesses adopt the digital onboarding and whether the platform can sustain its funding capacity as demand rises. The initiative does, however, illustrate ongoing efforts to plug a persistent financing hole that affects a large share of the UAE’s economy.