Startup Wrap – Regional venture capital activity flourishes in first week of Ramadan

Startup Wrap – Regional venture capital activity flourishes in first week of Ramadan
The agreement was signed by Nabeel Koshak, CEO and board member of SVC, and Muhannad Qubbaj, founding partner of Olive Rock Partners, in the presence of key officials from both organizations. SPA
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Updated 17 March 2024
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Startup Wrap – Regional venture capital activity flourishes in first week of Ramadan

Startup Wrap – Regional venture capital activity flourishes in first week of Ramadan

CAIRO: Startups across the Middle East and North Africa experienced a surge in funding, bucking the trend of the typically slower business pace during the holy month.  

Contrary to expectations, the region’s venture landscape saw an impressive array of deals, indicating robust activity and investor confidence across various sectors in the first week of Ramadan. 

The Kingdom’s government investment vehicle Saudi Venture Capital Co. announced a $30 million investment in Olive Rock Partners Fund I.  

The investment aligns with SVC’s strategy to develop and sustain financing for startups and small and medium-sized enterprises in strategic sectors. 

Focused on mid-market buyouts that are demographically driven, geographically advantaged, and technologically enabled, Olive Rock Partners Fund I is a regional private equity fund aiming to boost the ecosystem. 

The agreement was signed by Nabeel Koshak, CEO and board member of SVC, and Muhannad Qubbaj, founding partner of Olive Rock Partners, in the presence of key officials from both organizations.  

“The investment in Olive Rock Partners Fund I is part of SVC’s Investment in Funds Program, which is a continuation of the company’s series of investments and an implementation of its strategy related to developing and sustaining financing for startups and SMEs, especially in strategic sectors,” Koshak said. 

Qubbaj expressed gratitude for SVC’s trust and highlighted the partnership’s potential to fuel growth in the SME space and enhance the direct investment landscape in Saudi Arabia. 

Established in 2018 as a subsidiary of the SME Bank, part of the National Development Fund, SVC is committed to stimulating and sustaining financing for startups and SMEs from pre-seed to pre-initial public offering stages through investments in funds and direct investments in startups and SMEs.  

Mitgo Group acquires UAE’s Embedded 

Mitgo Group, a Germany-based marketing technology provider, has expanded its portfolio by acquiring UAE-based Embedded, a finance platform.  

Established in 2022 by Alexander Bachmann, Mitgo Group aims to enhance its service offerings in the affiliate market with this acquisition.  

Embedded, founded in 2023 by Oleg Chanchikov, specializes in integrating financial services within other businesses, aligning well with Mitgo’s strategic direction. 

The acquisition enables Mitgo Group to diversify its solutions, providing clients with innovative financial services embedded directly into their platforms.  

This move is expected to strengthen Mitgo’s position in the market, offering more comprehensive services to its customers in the affiliate marketing sector. 

UAE’s traveltech Seeru raises pre-seed round 

UAE-based traveltech startup Seeru has successfully raised a pre-seed funding round led by US-based venture studio Nabtah Ventures.  

Co-founders Abd Elmohaimen Mansi and Abdullah Mancy launched Seeru to streamline the travel planning process for various stakeholders, including individual travelers and agencies.  

The platform aims to eliminate the complexities associated with organizing trips, offering a comprehensive solution to enhance the travel experience. 

With the injection of fresh capital, Seeru is poised to accelerate its product development efforts and broaden its reach in the global market.   

Kuwait’s Mojo raises seven-figure seed round 

Kuwait-based social commerce platform Mojo has secured a seven-figure seed investment led by Joa Capital and Emkan Capital, with additional support from Plus VC, Atyab Al Marshoud, Wahed Invest, and other angel investors.  

Founded in 2022 by Abdulaziz Al-Bahar and Nadia Al-Hamad, Mojo provides a platform where users can explore, review, and recommend beauty, skincare, and wellness products. 

The funding will be instrumental in enhancing Mojo’s technology stack, attracting top-tier talent, and expanding its market presence, particularly in Saudi Arabia.   

Saudi-based Grintafy receives investment from Chiliz  

Saudi Arabia-based sportstech Grintafy has received an investment from Chiliz, bolstering its position as a leading football talent discovery platform.  

Founded in 2019 by Majdi Allulu, Grintafy connects aspiring footballers with professional opportunities, leveraging technology to scout and showcase talent across the Middle East and Europe. 

The partnership with Chiliz will enable Grintafy to accelerate its adoption of web3 technologies and expand its reach in the international sports arena.  

Chiliz, known for its expertise in blockchain and sports engagement, will provide Grintafy with the technological infrastructure and ecosystem support to enhance its offerings and drive growth. 

Grintafy’s collaboration with Chiliz marks a significant step forward in its mission to revolutionize football talent discovery.  

By integrating cutting-edge technology and expanding its global footprint, Grintafy is poised to unlock new opportunities for players and clubs alike, contributing to the development of the sport on a global scale. 

Egypt’s 30Med secures pre-seed round  

Egypt-based business to business healthtech 30Med has raised pre-seed funding from anonymous angel investors, marking a key milestone in its mission to connect pharmaceutical companies with medical professionals.  

Founded in 2023 by Ayman Ragab, 30Med offers an innovative platform that facilitates the exchange of knowledge and information about new medicines through interactive videos and events.  

The investment will enable 30Med to enhance its platform, expanding its reach within the medical community and further bridging the gap between pharmaceutical firms and healthcare providers.   

Morocco’s ORA Technologies secures $1.5m in a seed round 

ORA Technologies, based in Morocco, has secured $1.5 million in seed funding to drive the growth of its superapp.  

Founded in 2023 by Omar Alami, ORA integrates various features, including peer-to-peer transactions, e-commerce, and social networking, into a single platform.  

ORA also secured a partnership with M2T, a subsidiary of Banque Centrale Populaire, which paves the way for the imminent launch of ORA’s digital wallet. 

The funding will accelerate ORA’s expansion plans, enhancing its suite of services and expanding its user base.


Saudi PIF, French private equity group to acquire 38 percent of Heathrow airport

Saudi PIF, French private equity group to acquire 38 percent of Heathrow airport
Updated 15 June 2024
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Saudi PIF, French private equity group to acquire 38 percent of Heathrow airport

Saudi PIF, French private equity group to acquire 38 percent of Heathrow airport
  • Ferrovial to remain as shareholder under revised deal for UK’s busiest hub

LONDON: Saudi Arabia’s sovereign wealth fund and a French private equity group will acquire a 38 percent stake in Britain’s busiest airport, Heathrow, officials announced on Friday.

Dutch-based transport company Ferrovial SE said the Public Investment Fund and Ardian had made a revised offer to acquire shares representing 37.62 percent of the share capital of FGP Topco, the parent company of Heathrow Airport Holdings Ltd, for more than £3.2 million ($4.1 million).

Under the new agreement, Ferrovial, which operates in more than 15 countries, will remain as a shareholder with shares representing 5.25 percent of the issued share capital of FGP Topco.

Following the sale, the Topco shareholders and Ferrovial will together hold shares “representing 10 percent of the issued share capital,” while PIF and Ardian will buy 22.6 percent and 15 percent respectively of FGP Topco through separate vehicles, Ferrovial said.

“The parties have been working toward satisfaction of the condition for the sale of the Tagged Shares to be sold alongside Ferrovial’s shares by exploring different options to satisfy the same,” the statement added.

The deal remains subject to regulators’ approval, Ferrovial said.

In November, Ferrovial had said it was planning to offload its stake, with PIF taking 10 percent and Ardian taking 15 percent, but the deal has been amended to allow FGP Topco shareholders to sell their shares on the same terms under so-called “tag-along rights.”

“Ardian is pleased to have worked closely with the parties to find this revised agreement and reiterates its strong commitment to investing in the UK,” the French company said in a separate statement.

The private investment house, which manages or advises $166 billion of assets on behalf of more than 1,600 clients globally, added that it “actively supports its assets to accelerate their transformation by leveraging data and new technologies to reduce emissions, creating new, more sustainable revenue sources, becoming more independent and resilient to external shocks, and improving their impact on both local and global environments.”


IMF heralds Saudi Arabia’s ‘unprecedented economic transformation’ in glowing report

IMF heralds Saudi Arabia’s ‘unprecedented economic transformation’ in glowing report
Updated 14 June 2024
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IMF heralds Saudi Arabia’s ‘unprecedented economic transformation’ in glowing report

IMF heralds Saudi Arabia’s ‘unprecedented economic transformation’ in glowing report

RIYADH: Saudi Arabia’s “unprecedented economic transformation” is progressing well thanks to prudent government policies and successful diversification efforts, according to the International Monetary Fund.

In a report focusing on the changing economic landscape of the Kingdom, the organization highlighted growing domestic demand, ongoing financial reforms, and environmental policies as areas of strength.

The findings comes just days after the Organisation for Economic Co-operation and Development released figures showing that Saudi Arabia’s economy witnessed growth above the G20 average in the first three months of the year.

In a release to mark the the end of an official visit to the Kingdom by the IMF, the organization projected Saudi Arabia’s overall GDP growth will accelerate to around 4.5 percent in 2025 before stabilizing at 3.5 percent per year over the medium term.

It forecast non-oil growth to reach 3.5 percent in 2024 “before picking up in 2025 onwards.”

It added: “Oil output is projected to contract by 4.6 percent in 2024 but increase by 5.1 percent in 2025, reflecting an extension of oil production cuts in 2024 and a gradual recovery to 10 mbpd in 2025.”

Reflecting on the transformation policies undertaken by the Saudi government, the IMF noted that “Efforts to diversify the economy have started to bear fruit.”

The report added: “Building on these successes, it will be important to sustain the non-oil growth momentum, maintain financial sector stability, continue mitigating risks of overheating, reverse declining total factor productivity and ensure inter-generational equity.”

The IMF welcomed the “recent recalibration” of funding requirements associated with the Vision 2030 objectives, and also praised the Kingdom’s drive to become a haven for private sector development.

“Reforms to enhance Saudi Arabia’s business environment and attractiveness for foreign investment are progressing well,” said the IMF, noting that Saudi Arabia climbed 15 notches in the IMD’s World Competitiveness ranking in two years, obtaining the 17th position globally in 2023. 

“Ongoing work to boost human capital through the Human Capability Development program, further increases in female labor force participation, significant strides in digital transformation and AI preparedness, streamlining of fees and levies, promotion of access to land and finance, and stronger governance would further enhance private sector growth, help attract more FDI, and contribute to total factor productivity growth,” the report added.

The IMF described Saudi Arabia’s financial sector as being on a “strong footing,” noting that bank credit growth – mainly to the corporate sector – continues to surpass deposit growth and is expected to remain at around 10 percent in 2024. 

“The continued efforts by SAMA to modernize the regulatory and supervisory frameworks are key to safeguarding financial stability,” said the report, adding: “SAMA should continue using macroprudential tools to forestall possible risks stemming from a lending boom.”

The report also noted Saudi Arabia’s environmental initiatives, saying that the Kingdom “remains committed” to achieving net zero emissions by 2060. 

“The authorities continue to invest in renewable energy, energy efficiency, clean hydrogen, and carbon capture technologies,” said the IMF, adding: “Eliminating energy subsidies would incentivize energy conservation and improve returns on investment in renewable energies. Augmenting the active green finance portfolio—including through the implementation of the Green Finance framework announced in March 2024 and by an inaugural sovereign green bond issuance planned for this year—would be critical for mobilizing private capital.”


China approves first ETFs tracking Saudi equities, fund managers tell Reuters

China approves first ETFs tracking Saudi equities, fund managers tell Reuters
Updated 14 June 2024
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China approves first ETFs tracking Saudi equities, fund managers tell Reuters

China approves first ETFs tracking Saudi equities, fund managers tell Reuters

SHANGHAI: China approved its first exchange-traded funds investing in Saudi Arabia equities on Friday, fund managers told Reuters, as Beijing expands ties with the Middle East amid rising tensions with the West.

The products, managed by China’s Huatai-Pinebridge Investments and Southern Asset Management separately, will track Hong Kong-listed CSOP Saudi Arabia ETF, which debuted in November by Hong Kong-based CSOP Asset Management, according to the two fund managers.

“The approval will further deepen the cooperation between Saudi and China in capital markets,” said Ding Chen, chief executive officer at CSOP.

The CSOP Saudi Arabia ETF, which tracks the performance of the FTSE Saudi Arabia Index, is down roughly 5 percent so far this year, compared with a 3 percent gain in China’s stock benchmark CSI 300 .

Reuters reported in August that China and Saudi Arabia’s stock exchanges were talking about allowing exchange-traded funds (ETFs) to list on each other’s bourses, as the countries look to deepen financial ties amid warming diplomatic relations.

Through the ETF, investors in China will be able to trade Saudi stocks including the oil giant Saudi Aramco and Saudi National Bank.

Beijing, frustrated by what it sees as Washington’s weaponization of economic policies, has sought to expand ties with countries in Europe, the Middle East and Africa. Its diplomatic push to court others include US ally Saudi Arabia.

Earlier this week, China’s securities regulator told Reuters that it welcomes foreign financial institutions and investors, including those from the Middle East, to expand investment in China.

The statement was made in response to a Reuters request seeking comment on news that Qatar’s sovereign wealth fund had agreed to buy a 10 percent stake in China Asset Management Co., the country’s second biggest mutual fund company.


Saudi deputy minister highlights Kingdom’s manufacturing sector potential to German businesses

Saudi deputy minister highlights Kingdom’s manufacturing sector potential to German businesses
Updated 14 June 2024
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Saudi deputy minister highlights Kingdom’s manufacturing sector potential to German businesses

Saudi deputy minister highlights Kingdom’s manufacturing sector potential to German businesses

RIYADH: Investment opportunities in Saudi Arabia’s manufacturing sector were set out to a host of German companies by the Kingdom’s deputy industry minister during a trade show in Frankfurt.

Engineer Khalil Ibrahim bin Salamah met with representatives from firms including systems suppliers the GEA Group, chemical company LINDE, and packaging solutions company IMA, in a bid to strengthen ties between the two nations at a trade show in Frankfurt.

The minister discussed increasing cooperation with the business people, as well as setting out the most prominent investment opportunities provided in the Kingdom’s industrial sector, according to the Saudi Press Agency.

The meetings were held on the sidelines of ACHEMA, a global trade show for the chemical, pharmaceutical and food industry.

Bin Salamah also visited several big-name German petrochemical factories, such as Sanofi, during which he discussed enhancing innovation and sustainability and discovering opportunities to localize pharmaceutical industries.

He also held talks with representatives from global firms including Jagdamba Enterprise, Baker Hughes, and Panametrics.

 

 


Startup Wrap – Middle East SME funding activity flourishes with significant sums 

Startup Wrap – Middle East SME funding activity flourishes with significant sums 
Updated 14 June 2024
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Startup Wrap – Middle East SME funding activity flourishes with significant sums 

Startup Wrap – Middle East SME funding activity flourishes with significant sums 

CAIRO: The Middle East region has been witnessing a significant boost in startup activity, with numerous entrepreneurs securing funding across key sectors.  

Additionally, multiple investment pools were established, with Qatari and Emirati venture capitals aiming to further amplify the ecosystem. 

Regional startups are particularly eyeing the burgeoning Saudi market, with UAE-based proptech firm Stake raising $14 million in a series A funding round to enter the Kingdom.

The round was led by Middle East Venture Partners, with participation from Aramco’s Wa’ed Ventures, Mubadala, and Republic. 

Founded in 2021 by Rami Tabbara, Manar Mahmassani, and Ricardo Brizido, Stake is a digital real estate investment platform that offers options for income-generating properties in Dubai. 

The newly raised funds will be used to expand Stake’s services into Saudi Arabia this year. 

In 2022, Stake closed its pre-series A round at $8 million, backed by MEVP and BY Ventures, with participation from returning investors Vivium Holding and Combined Growth Real Estate. 

Saudi edtech Tahdir raises $270k in pre-seed round  

Saudi-based edtech Tahdir has closed a pre-seed funding round of $270,000 from a group of angel investors.  

Founded by Mohammed Al-Doukhi and Khalil Al-Haid, Tahdir’s platform automates daily school and educational management processes, and the company claims to be serving 92 schools with over 30,000 users. 

The investment will help the company enhance its capabilities and expand its operations within the Kingdom. 

Egypt-based medtech i‘SUPPLY secures pre-series A round  

i‘SUPPLY was founded in 2022 by Ibrahim Emam, Malek Sultan and Moustafa Zaki. Supplied

Egypt-based medical tech startup i‘SUPPLY has secured a pre-series A round, bringing its total funding to $2.5 million since its inception in 2022.  

This round saw participation from several investment funds, including Disruptech Ventures, OneStop Capital, Axian Investment CVC, and Egypt Ventures. 

Founded by Ibrahim Emam, Malek Sultan, and Moustafa Zaki, i‘SUPPLY aims to digitize the pharmaceutical business by offering a one-stop-shop solution to quickly predict and overcome supply chain disruptions.  

The new funding will bolster i’SUPPLY’s expansion plans, enhance its capabilities in financing small and medium-sized pharmacies, and further develop its fintech offerings and technological services. 

Egyptian fintech Sahl raises $6m in series A round 

Cairo-based fintech Sahl has raised $6 million in an investment that acts as a series A and seed funding round led by Ayady for Investment and Development. Existing investors Egypt Pay, Delta Electronic Systems, and E-Finance also participated in the round.  

Founded in 2020 by Ahmed Othman, Ibrahim Assal, and Abullah Assal, Sahl is a bill payment platform that allows users to recharge prepaid cards.  

The company is one of the few Egyptian firms integrating directly with several government entities.  

The new funds will help refine and develop Sahl’s offerings and extend its services to Saudi Arabia after its regional launch in the UAE.  

UAE’s Qstay raises $4.6m in pre-series A round 

Jumeirah beach residence. Supplied.

UAE-based hospitality platform Qstay has raised $4.6 million in a pre-series A funding round through a combination of conventional and convertible debt.  

Founded in 2020 by Artur Khayrullin, Ekaterina Rogozhina, Alec Fesenko, and Natalya Fesenko, Qstay operates as a virtual hotel brand with 200 units.  

Qstay provides digital app-based access to nearby pools, beaches, gyms, and spas for guests staying in beachfront properties.  

To date, the company has raised $11.1 million. In July 2022, Qstay closed a debt and equity Seed round of $6.5 million. 

UAE-based Polynome Group announces $100m fund for AI startups 

UAE-based event management company Polynome Group has announced a $100 million fund to invest in artificial intelligence startups.  

The fund will target startups in technology, AI software applications, and robotics, aligning with goals to expand the adoption of digital technologies beginning in the first quarter of 2025. 

The fund will adopt the “founders for founders” concept, investing in seed, series A, and growth stage startups with initial investments ranging from $500,000 to $5 million per company. 

UAE-based contech Tenderd secures $30m in series A funding 

Construction technology firm Tenderd has closed a $30 million series A funding round, led by A.P. Moller Holding, with new investors Quadri Ventures and Saurya Prakash joining existing investors Wa’ed Ventures, Nakhla Ventures, SOMA Capital, and Liquid 2 Ventures. 

Founded in 2018 by Arjun Mohan, Tenderd provides customers with AI-generated insights to increase asset utilization and reduce emissions, focusing on heavy industries such as construction and logistics.  

The capital will fuel technological innovations and support the UAE-based firm’s global expansion efforts. 

Qatar-based Rasmal Ventures launches first home-grown fund 

Qatar-based VC firm Rasmal Ventures LLC has launched its first home-grown fund, aiming to drive innovation and investment in Qatar and the Middle East and North Africa region.  

The Rasmal Innovation Fund I LLC targets high-performance startups in climate tech, fintech, business to business Software-as-a-Service, and AI sectors. 

For the initial closing, the fund has raised $30 million from institutional investors and family offices, with the goal of reaching $100 million in investment commitments. 

Kuwait-based travel tech Waves secures investment round 

Kuwait-based travel tech startup Waves has closed an investment round for an undisclosed amount, co-led by BNK Capital and Aujan Enterprises.  

Founded in 2021 by Abdulrahman Al-Sadoun and Sulaiman Al-Tunaib, Waves is an online marketplace for booking sea trips, marine activities, and chalets with operations in Kuwait, Saudi Arabia, Qatar, and the UAE. 

The investment will be used to enhance Waves’ services in Saudi Arabia. 

E-commerce platform Orisdi raises six-figure bridge round 

Iraq-based e-commerce platform Orisdi has raised a six-figure bridge round of investment, backed by existing investors including Al Sharqiya TV Group, Iraq Venture Partners, and various angel investors.  

Founded in 2019 by Ahmed Al-Kiremli and Hala Usama, Orisdi offers a range of products across verticals such as perfumes, cosmetics, appliances, stationery, and electronics. 

This funding round, which closed in April 2024, will support Orisdi’s business development efforts and highlight the potential of the e-commerce sector in Iraq.