Saudi fintech startup secures $670k seed funding

Saudi fintech startup secures $670k seed funding
The number of digital payment transactions in the Kingdom surged 75 percent in 2020. (Reuters/File)
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Updated 13 April 2021

Saudi fintech startup secures $670k seed funding

Saudi fintech startup secures $670k seed funding
  • New legislation in Saudi Arabia will make e-invoicing necessary in all transactions

JEDDAH: Saudi fintech startup Prexle has raised SR2.5 million ($670,000) in seed funding from angel investors, the company announced this week.

A cloud-based point-of-sale software startup, Prexle’s platform helps retail store owners control inventories, customer demands, purchasing orders, discounts and generate business performance reports.

In a press statement, CEO and co-founder Abdullah Al-Ajlan said: “We’re happy to close our round of investment, which is going to surely help us improve the retail industry in the Kingdom through employing the latest technologies in the point-of-sale industry.”

Yazeed Al-Saif, co-founder and chief technology officer, added: “We value our investors’ trust. This round marks an important milestone in our journey to change the way retail works, and will allow us to even further develop and improve our product.”

By the end of 2021, new legislation in Saudi Arabia will make e-invoicing necessary in all transactions, and Prexle is one of the companies that stands to benefit from this requirement.

The number of digital payment transactions in the Kingdom surged 75 percent in 2020 as Saudi consumers embraced online shopping during the coronavirus pandemic.

The total number of digital transactions last year amounted to about 2.8 billion, an increase of 75 percent compared with the same period in the previous year. The value of these transactions totaled about SR349 billion, an increase of almost 24.1 percent compared with the same period in 2019.

Network International, the UAE-based digital payment processor which this month told Arab News it is pushing ahead with a Saudi expansion later this year, reported that the amount of non-cash payments it processed in the Kingdom grew from 8 percent in 2017 to 16 percent in 2019, making Saudi Arabia one of its fastest growing markets.


Emirates to operate 70% of pre-pandemic capacity by year-end

Emirates to operate 70% of pre-pandemic capacity by year-end
Updated 35 min 55 sec ago

Emirates to operate 70% of pre-pandemic capacity by year-end

Emirates to operate 70% of pre-pandemic capacity by year-end
  • The Dubai flag carrier may obtain further financial support from the Dubai government and could also issue bonds

RIYADH: Emirates Airline will operate 70 percent of its pre-pandemic power by the end of this year, Chairman Sheikh Ahmed bin Saeed Al-Maktoum revealed.
He said the company maintained strong financial solvency despite the devastating impact of the pandemic on the global aviation sector, Bloomberg reported.
The Dubai flag carrier may obtain further financial support from the Dubai government and could also issue bonds, he said.
“We are dealing with an emergency situation that changes on a weekly or even daily basis,” he said. “We are working on long and short trips. We currently have 151 Boeing 777 planes, and about 20 Airbus A380s in service, and we are awaiting the opening of markets and destinations to gradually return them,” he said.
Emirates Airline and flydubai were working to improve cooperation and develop further partnerships, he said.


Egypt to prioritize vaccination of tourism workers

Egypt to prioritize vaccination of tourism workers
Updated 49 min 39 sec ago

Egypt to prioritize vaccination of tourism workers

Egypt to prioritize vaccination of tourism workers
  • About 65 percent of tourists in Egypt head to those coastal destinations

DUBAI: Egypt is prioritizing the vaccination of tourism workers to support the sector’s recovery and is on track to announce full inoculation of two resort areas this month, its tourism minister said.
While Egypt’s tourism industry is still reeling from the COVID-19 pandemic, the sector has picked up in recent months, with more visitors heading to resorts along the Red Sea and Mediterranean coasts.
“We will prioritize workers in the tourism industry, which is an essential sector for Egypt’s economy,” Tourism and Antiquities Minister Khaled Al-Enani told AFP.
“In May, I will announce, along with the minister of health, the complete vaccination of Egyptian workers in hotels, resorts, businesses and restaurants in South Sinai and the Red Sea,” he said on the sidelines of a travel industry conference in Dubai.
About 65 percent of tourists in Egypt head to those coastal destinations, he said.
Enani said other tourist spots will follow, such as Luxor, Aswan and the capital Cairo, home of the Giza pyramids and major museums.
Egypt, which has a population of approximately 100 million, has administered some one million doses, according to authorities.
About two million people work in the tourism industry or organizations linked to it.
Along with its pyramids and pharaonic temples, Egypt is also known for its seaside resorts.
After experiencing “significant and continuous loss” since the coronavirus outbreak, the sector has picked up, said Enani.
He said Egypt welcomed 500,000 tourists in April, more than double the number in January and up from just 200,000 tourists a month in the second half of last year.
“The important thing is there is an upward curve,” Enani said.
“We hope the numbers will increase again in the near future with the opening of some countries and the easing of restrictions, including in Arab countries, Europe and Russia,” he said.
“The return of tourism in Egypt does not only depend on us, but remains linked to other countries.”
Cairo has announced several major new archaeological discoveries in recent months, hoping to revive a sector which was battered by a 2011 uprising, political unrest and jihadist attacks.
While the industry recorded a rebound of nearly $13 billion in revenues for 2018-2019, tourism was hit hard again by the  pandemic.
Official figures show a drop of more than 20 percent in revenues for mid-2019 to mid-2020.
Egypt reopened to foreign tourists in July last year after having closed its borders in March. Visitors only need to produce a negative PCR test.
Russia earlier this year resumed flights to Egypt’s Red Sea resorts after the lifting of a flight ban.
Moscow banned direct flights to Egypt after the 2015 bombing of a Russian airliner shortly after it took off from the Red Sea resort of Sharm el-Sheikh, killing all 224 people on board.
 


Saudi sovereign fund PIF boosts US equities exposure to over $15 billion

Saudi sovereign fund PIF boosts US equities exposure to over $15 billion
Updated 18 May 2021

Saudi sovereign fund PIF boosts US equities exposure to over $15 billion

Saudi sovereign fund PIF boosts US equities exposure to over $15 billion
  • Fund increased its US stock holdings to $15.4 billion in the first quarter

DUBAI : Saudi Arabia’s sovereign wealth fund has increased its US stock holdings to $15.4 billion in the first quarter from nearly $12.8 billion at the end of 2020, according to a US regulatory filing on Monday.
The Public Investment Fund (PIF) bought 2.9 million class A shares in SoftBank Group Corp-backed Coupang Inc, equivalent to $141 million, and dissolved its share stake in Suncor Energy, according to a Securities and Exchange Commission filing.
It more than doubled its position in Activision Blizzard to 33.4 million shares from 15 million shares at the end of the fourth quarter, which led it to a $3.1 billion exposure from $1.4 billion.
The fund increased its shares in Electronic Arts Inc. to 14.2 million, equivalent to $1.9 billion, from a $1.1 billion position at the end of the previous quarter.
PIF, which did not immediately respond to a comment request on the filing, is at the center of Saudi Arabia’s plans to transform the economy by creating new sectors and diversifying revenues away from oil.
The $400 billion fund is expected to inject at least $40 billion annually in the local economy until 2025, and increase its assets to $1 trillion by that date, which would make it one of the world’s biggest sovereign wealth funds.
“PIF would have wanted to take advantage of the bullish sentiment in equity markets in Q1 to make opportunistic investments and add to its portfolio,” said Rachna Uppal, director of research at Azure Strategy.
“In line with domestic efforts to achieve the objectives of Vision 2030, the Saudis also appear to be favoring investments into sectors such as technology, mobility, and especially future mobility, tourism and entertainment,” she said.
At the start of last year PIF piled up minority stakes in companies worldwide, taking advantage of market weakness caused by the coronavirus crisis.
Monday’s filing showed the value of its biggest US stock holding, Uber Technologies, rose to nearly $4 billion in the first quarter, from $3.7 billion as of Dec. 31, as the ride-hailing company’s shares gained value during the period.
PIF was an early investor in Uber, taking a $3.5 billion stake in 2016, three years before its listing in 2019.


Qatar Investment Authority to take $740m chunk of US renewables firm Avangrid

Qatar Investment Authority to take $740m chunk of US renewables firm Avangrid
Updated 18 May 2021

Qatar Investment Authority to take $740m chunk of US renewables firm Avangrid

Qatar Investment Authority to take $740m chunk of US renewables firm Avangrid
  • QIA will buy shares worth $740 million and Iberdorla, the largest shareholder in Avangrid

RIYADH: Renewable energy provider Avangrid said it would sell shares worth a total of $4 billion to both the Qatar Investment Authority (QIA) and Spanish Iberdrola Group for $ 51.40 a share.
QIA will buy shares worth $740 million and Iberdorla, the largest shareholder in Avangrid (based in Orange County, Connecticut, US), will purchase approximately $3.26 billion of stock, Asharq Business reported.
The deal is expected to close on Tuesday.
The Qatar Investment Authority last March also acquired 16 percent of the 53 million shares offered by Siemens Healthineers, through a private placement of $2.8 billion.
The fund is targeting deals in Asia, in an attempt to diversify its investment portfolio, which has a great focus and weight in America. Northern and Europe, Chairman Sheikh Mohammed bin Abdulrahman Al-Thani said in a previous interview with Bloomberg.

 


Egyptian neobank Telda raises $5m in Sequoia-led pre-seed round

Egyptian neobank Telda raises $5m in Sequoia-led pre-seed round
Updated 18 May 2021

Egyptian neobank Telda raises $5m in Sequoia-led pre-seed round

Egyptian neobank Telda raises $5m in Sequoia-led pre-seed round
  • It was the first investment for the American venture capital firm in the Middle East and North Africa

DUBAI: Telda, a Cairo-based digital banking application, has raised $5 million during its pre-seed funding round organized by US firm Sequoia Capital.
It was the first investment for the American venture capital firm in the Middle East and North Africa.
Global Founders capital and Class 5 Global also participated in the round.
The app recently announced it has received license from Egypt’s central bank to issue cards and on-board customers to its platform.
It has received 30,000 sign ups since it started its operations, it said.
The funding comes as digital-only banks rise in popularity across the region, where 60 percent of the population is estimated to be under the age of 25.
“Egypt boasts of a large, young, talented and tech savvy population with a strong appetite to innovate,” Sequoia partner George Robson said.
Egypt is among the top 10 countries most reliant on cash and with the highest rate of unbanked people, according to Merchant Machine.
“Today’s funding milestone promotes the digital transformation of the Egyptian economy and allows Telda to provide everyone with access to important financial services so they can fully participate in the economy,” Telda chief technology officer Youssef Sholqamy said.
Sholqamy, who was a former senior engineer in Uber’s infrastructure team, co-founded the startup with Ahmed Sabbah, who also founded the Egyptian bus-hailing service Swvl.