Startup Wrap – Saudi firms continue to lead regional activity

Startup Wrap – Saudi firms continue to lead regional activity
Football sensation Cristiano Ronaldo has invested an undisclosed amount in personalized nutritional supplements provider Bioniq. (Supplied)
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Updated 27 October 2024
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Startup Wrap – Saudi firms continue to lead regional activity

Startup Wrap – Saudi firms continue to lead regional activity

RIYADH: Saudi Arabia’s startup ecosystem is gaining momentum, with several firms securing significant investments and partnerships as they scale their operations.

Backed by both local and international venture capital, several startups are positioning themselves as key players in the region’s digital transformation, supporting Saudi Vision 2030’s goals of fostering innovation and economic diversification.

Saudi Arabia-headquartered mobility startup invygo has raised an $8 million series A extension, led by STV’s newly launched NICE Fund.

The round also saw participation from existing investors, including Al Rajhi Partners, Arab Bank Ventures, and SPV, as well as MEVP, and C5.

Founded in the UAE in 2019 by Eslam Hussein and Pulkit Ganjoo, invygo is an app-based service that offers users the ability to choose, drive, swap, and own cars. The company currently operates in Saudi Arabia, the UAE, and Qatar.

To date, invygo has secured over $22 million in funding from regional and global investors. The company is nearing profitability, which is expected by the end of 2024, according to its founders.

“This round comes after 24 months without external capital, a testament to our commitment to building a financially sustainable business that is reshaping mobility. Our focus remains on driving meaningful impact in customer experience and the broader global mobility landscape from the Middle East,” Hussein said.

The recent investment will help further scale its operations in the region as it continues to grow its customer base.

Saudi fintech startup Mala closes $7m pre-seed round

Saudi Arabia-based fintech Mala has closed a $7 million pre-seed funding round, led by VentureSouq and Shorooq Partners.

Other participants in the round include M Capital, BECO Capital, and Access Bridge Ventures, as well as Waad Investment, Palm Ventures, and Silicon Valley-based D Global Ventures.

Mala, founded in 2024 by Musaab Hakami, is a business-to-business platform that offers a procure now, pay later solution for small and medium-sized enterprises, enabling them to access flexible credit terms while ensuring that suppliers receive immediate cash payments.

“Suppliers in Saudi Arabia often struggle to extend adequate credit to buyers, as the traditional system relies more on established relationships than comprehensive credit risk evaluations,” Hakami said.

“Mala harnesses data-driven insights to reshape this dynamic, enabling suppliers to be paid upfront while offering buyers flexible payment options tailored to their needs,” he added.

The funds raised will enable Mala to officially launch its services in Saudi Arabia in the fourth quarter of the year, positioning itself as a key player in the SME financing landscape within the region.

HALA Payments joins Saudi Unicorns Programme

Saudi fintech company HALA Payments has been selected to join the Saudi Unicorns Programme, a government-led initiative aimed at fostering high-growth companies.

Through the program, HALA will benefit from opportunities to attract top talent, expand into new markets, and build strategic partnerships with government entities and global leaders in the fintech sector.

Founded in 2018 by Esam Al-Nahdi and Maher Loubieh, HALA offers banking solutions for SMEs and freelancers, enabling them to seamlessly manage and grow their businesses.

The Saudi Unicorns Programme, part of Saudi Vision 2030, is run by the Ministry of Communications and Information Technology in collaboration with the Mohammed bin Salman Foundation, supporting the country’s efforts to drive economic diversification and digital transformation.

“HALA’s inclusion in this prestigious program reflects our deep commitment to Saudi Vision 2030. As we continue our global expansion, we are not only scaling our business but also contributing to Saudi Arabia’s position as a leader in fintech innovation,” Al-Nahdi said.

“Our mission aligns with the Kingdom’s goals of economic diversification and digital transformation, and we are excited to expand our impact across the MENA region and beyond,” he added.

The program has already seen a few unicorns, which are startups with over $1 billion valuations, graduate. In the fourth quarter of last year, the initiative saw Tabby and Tamara, both buy now, pay later companies, reach unicorn status.

Ronaldo invests in UK-based Bioniq

Football sensation Cristiano Ronaldo has invested an undisclosed amount in personalized nutritional supplements provider Bioniq, boosting its valuation to $82 million.

Founded in 2019 by Vadim Fedotov, Bioniq has recently expanded to Saudi Arabia through a local partnership and now operates in over 70 markets. The company also closed its $15 million series B earlier in July.

“Backing Bioniq goes beyond just an investment opportunity for me— it’s about aligning with a shared vision for health, performance, and longevity,” said Ronaldo.

Prypco raises $10m in seed round

UAE-based proptech startup Prypco has raised $10 million in a seed funding round led by Shorooq Partners, with participation from Apparel Group and other investors.

Founded in 2022 by Amira Sajwani, Prypco offers real estate services through its four verticals, Prypco Blocks, Prypco Mortgage, Prypco Exclusives, and Prypco Golden Visa.

Prypco Mortgage claims it has facilitated home loans totaling over $136 million. The latest $10 million investment will support the company’s growth, focusing on organic expansion across its various product offerings.

“In mortgages, we are currently the second-largest mortgage broker in the UAE,” said Sajwani.

“For fractional ownership, even though we started just three months ago, we are already the third largest in the UAE. When it comes to Golden Visas, we are the largest provider at scale with 600 plus visas, as there are few service providers offering this at our level,” she added.

Best Kept Shared acquires fashion resale platform BAZAARA

UAE-based e-commerce platform Best Kept Shared has acquired peer-to-peer fashion resale platform BAZAARA for an undisclosed amount.

Best Kept Shared, founded in 2023 by Kelly Power and Sophie Kjoller, is a P2P platform for fashion rental and resale, while BAZAARA, founded in 2021 by Alyssa Mariano, focuses on enabling users to buy and sell pre-owned clothing and accessories.

The acquisition will integrate BAZAARA’s existing network with Best Kept Shared’s infrastructure, providing customers with a wider range of options for buying, selling, and renting fashion items.

“This acquisition is a significant milestone in our journey to revolutionize the luxury fashion industry, expanding our market reach and helping more women to access luxury fashion without the designer price tag or environmental impact,” Best Kept Shared founders said in a statement.

The move signals continued consolidation in the region’s fashion tech sector, with platforms looking to expand their reach through strategic acquisitions.

“We are thrilled to be joining Best Kept Shared in this exciting venture. Our shared vision for promoting sustainable fashion and empowering our communities aligns perfectly,” Mariano said.

UK-based Proximie partners with Olympus Corp.

UK-based healthtech provider Proximie has partnered with Japanese surgical tools and endoscopy systems giant Olympus Corp.

The partnership will allow Olympus to offer Proximie’s technology to its customers. The Japanese giant is estimated to have captured 70 percent of the global endoscopy market.

Proximie, founded in 2016, offers a device-agnostic platform which allows for real-time collaboration, to schedule secure training sessions as well as the ability to capture video from any source.


UrbanV joins forces with Cluster2 to revolutionize air mobility in Saudi Arabia

UrbanV joins forces with Cluster2 to revolutionize air mobility in Saudi Arabia
Updated 11 November 2024
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UrbanV joins forces with Cluster2 to revolutionize air mobility in Saudi Arabia

UrbanV joins forces with Cluster2 to revolutionize air mobility in Saudi Arabia

RIYADH: Saudi airports under Cluster2’s management will soon begin feasibility studies to explore the implementation of advanced air mobility solutions.

This initiative is part of a new partnership with UrbanV, an Italian vertiport operator.

The two sides have signed a memorandum of understanding aimed at developing both advanced air mobility and urban air mobility services within Saudi Arabia.

The agreement, signed by Ali Masrahi, CEO of Cluster2, and Carlo Tursi, CEO of UrbanV, focuses on creating an integrated ecosystem for AAM across Cluster2’s network of airports.

Beyond feasibility studies, the partnership will establish a framework for the design, development, and management of AAM and UAM solutions. This will ensure compliance with regulations set by the Kingdom’s General Authority of Civil Aviation, as well as safety standards and environmental sustainability goals.

UrbanV will contribute its expertise in AAM operations, providing technical training, knowledge transfer, and collaboration with key stakeholders.

As part of the collaboration, pilot programs will be launched to test electric vertical take-off and landing services in areas such as medical emergencies, VIP transport, and logistics. These trials will allow the partners to assess the operational feasibility of AAM in real-world conditions.

The companies have committed to supporting Saudi Arabia’s Vision 2030, including the use of zero-emission eVTOL vehicles and the development of environmentally sustainable vertiports.

“We are pleased to sign this partnership,” said Masrahi. “Through such collaborations, we aim to lead the way in creating advanced air mobility solutions and building an integrated ecosystem for airports across the Kingdom, while ensuring environmental sustainability at all our facilities.”

Tursi shared a similar sentiment, stating, “At UrbanV, we aim to improve people’s lives by enabling a fast, efficient, safe, and clean alternative for short-distance transport solutions for both people and goods by air. We are ambitious to become a global leader in operating vertiport networks and pioneering some of the world’s first AAM routes. We are excited to partner with Cluster2, a key player in airport management, and look forward to exploring the vast potential of introducing advanced air mobility in Saudi Arabia.”

Cluster2’s strategic objectives include increasing annual passenger traffic, expanding airport capacity, connecting Asia, Europe, and Africa via Saudi Arabia, and increasing the number of international routes in the Kingdom.

The company currently manages 22 airports across Saudi Arabia, including AlUla International, King Abdullah bin Abdulaziz Airport in Jazan, and King Saud bin Abdulaziz Airport in Al-Bahah.


Sharif, Al-Falih discuss progress on $2.8bn business deals

Sharif, Al-Falih discuss progress on $2.8bn business deals
Updated 11 November 2024
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Sharif, Al-Falih discuss progress on $2.8bn business deals

Sharif, Al-Falih discuss progress on $2.8bn business deals

ISLAMABAD: Pakistani Prime Minister Shehbaz Sharif met Saudi Investment Minister Khalid Al-Falih in Riyadh on Monday to discuss the progress of recently signed business agreements between the two countries, according to the Prime Minister’s Office.

On Oct. 10, Pakistani and Saudi businesses signed 27 memorandums of understanding worth $2.2 billion during Al-Falih’s visit to Islamabad. Later, during Sharif’s visit to Saudi Arabia on Oct. 30, Al-Falih announced that the number of agreements would be increased from 27 to 34, and the total value would rise to $2.8 billion.

Sharif is in Riyadh to attend the Arab-Islamic Summit. On the sidelines of the summit, he also met with Mohammed Al-Tuwaijri, the royal court’s adviser.

According to the Prime Minister’s Office, the meeting focused on reviewing the progress of economic cooperation initiatives between the two countries. Sharif praised the ongoing efforts of Pakistani and Saudi technical teams working on these major projects.

The meeting comes as Pakistan seeks to strengthen trade and investment ties with its allies, particularly Saudi Arabia. The Kingdom has pledged a $5 billion investment package, which is crucial for Pakistan as it grapples with a dire balance of payments crisis and dwindling foreign reserves.

To tackle its economic challenges, Pakistan established the Special Investment Facilitation Council in 2023. This hybrid civil-military body aims to expedite foreign investments in key sectors like agriculture, mining, tourism, and minerals.

Sharif has been actively engaging in economic diplomacy in recent months, seeking increased investments and fostering trade and regional connectivity. Pakistan is positioning itself as a key trade and transit hub linking Central Asia with the global market, while also seeking mutually beneficial partnerships with Gulf countries.


Cityscape Global 2024 to pave the way for innovation in real estate, minister says

Cityscape Global 2024 to pave the way for innovation in real estate, minister says
Updated 11 November 2024
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Cityscape Global 2024 to pave the way for innovation in real estate, minister says

Cityscape Global 2024 to pave the way for innovation in real estate, minister says

RIYADH: Cityscape Global 2024 is expected to drive innovation and sustainable advancements within Saudi Arabia’s real estate market, broadening growth opportunities, according to a top official.

The opening day of the event, which is taking place in Riyadh from Nov. 11 – 14, saw the Saudi Minister of Municipalities and Housing, Majid bin Abdullah Al-Hogail, explain that the Kingdom is working to develop the sector further to achieve the nation’s ambitions. 

This comes as Saudi Arabia’s real estate is a vital element of the country’s economy, contributing around 7 percent of gross domestic product and supporting numerous additional sectors. 

“The Kingdom’s hosting of the Cityscape Global for the second time is an affirmation of the Kingdom’s position, which has become a leading model in the field of innovation and real estate development and a global center that leaves a clear imprint in building the cities of the future,” Al-Hogail said.

“Today, we are not only hosting a real estate event, but we are opening the doors to new horizons of innovation and sustainable advancement to achieve the future of our ambitious country under the slogan ‘The Future of Life,’” he added. 

Saudi Minister of Municipalities and Housing Majid bin Abdullah Al-Hogail speaking at the event. X/@CSGlobalKSA

The minister went on to say that the number of local developers at the exhibition has doubled to more than 100, and the total of high-level real estate firms participating is up from from 54 to 69. 

“Of course, this increase comes in light of the accelerating growth witnessed by the sector since the beginning of this year,” he added. 

Al-Hogail further highlighted that this growth has brought about a rise in real estate deals, the value of which has exceeded SR630 billion ($167 billion) since the beginning of the year, making this sector one of the most important economic engines contributing to the development of the economy. 

“All these efforts aim to accelerate the development of real estate refinancing market programs in the Kingdom and expand through local and international capital market channels so that we can ensure the continued growth of this sector, which I undoubtedly expect to reach more than SR1.3 trillion, for the housing sector alone, in 2030,” he said. 

Toward the conclusion of his speech, the minister also underlined that the total value of launches and strategic agreements in Cityscape Global 2024 exceeds SR180 billion. 

In terms of announcements, Saudi National Housing Co. launched a new identity and strategy, which CEO Mohammad Saleh Al-Buty said included a “major expansion in pioneering projects.”

He added: “Today, from this place, I am pleased to inform investors about investment opportunities for the year 2025 with a value exceeding SR75 billion in residential projects and others.” 

Saud-based Retal Urban Development Co. also announced major projects for 2024. 

“In the name of ambition and achievement, and out of our keenness to achieve and realize hopes, Retal announces a group of projects for the year 2024 worth more than SR14 billion,” the firm’s CEO Abdullah Al-Braikan said.

Retal Urban Development Co. CEO Abdullah Al-Braikan. X/@CSGlobalKSA

Moving on to Diriyah Development Co., the developer announced the launch of 59 new luxury apartments and villas for the Signature Collection of The Ritz-Carlton Residences, Diriyah, marking the latest release of its luxury branded residences.

This launch follows the successful sell-out of the initial 106 Ritz Carlton Residences.

Diriyah Development Co. also launched the first luxury residential group, “Raffles Residences Diriyah”, affiliated with Raffles Hotels and Resorts, during its participation in the Cityscape Global exhibition in Riyadh, as part of the company’s continued provision of high-quality living standards with international standards in Diriyah.

The new residence will offer 90 luxury residences, ranging from one, two and three-bedroom suites to duplex villas and townhouses, with residents enjoying full access to the hotel’s world-class facilities.

During the announcement, Mohamed Saad – from the firm’s DevCo. division – introduced a new collection featuring 59 fully furnished apartments and villas, available in one- to four-bedroom configurations. 

Mohammad Al Habib Real Estate Co. also announced a new development during the event, which will be located in Riyadh, while founder and Chairman of Mountain View Amr Soliman also shed light on his firm’s first project to date in the Kingdom.

“Mountain View One”, situated in the north of Riyadh, will have an investment value of $320 million, with 500 villas. 

Mohammad Al-Othman, CEO of Kaden, used the event to announce the Jeddah Front project which spans 1 million sq. meters and involves total investments of up to SR10 billion. 

“The waterfront will feature 5,000 residential units, housing approximately 20,000 residents. It also includes recreational spaces covering 140,000 sq. meters and a business sector area reaching 138,000 sq. meters,” Al-Othman said, adding that there will also be around 800,000 hotel units. 

CEO of Tilal Real Estate Co. Abdulrahman Al-Bassam, who also spoke during the event, tackled the “Heart of Khobar” project, which is set to be valued at above SR6 billion upon completion of its phases. 

“On this occasion, we are pleased to announce the signing of the operational agreement for the project with 25Hours from the Accor Group. This project will be the second of its kind after Trojena in NEOM,” Al-Bassam said. 

Co-founder of Flow Adam Neumann also disclosed the company’s first local real estate fund worth SR1.1 billion, with Sico and Safa as partners. 


PIF’s EV maker Ceer secures advanced drive systems through new partnership 

PIF’s EV maker Ceer secures advanced drive systems through new partnership 
Updated 11 November 2024
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PIF’s EV maker Ceer secures advanced drive systems through new partnership 

PIF’s EV maker Ceer secures advanced drive systems through new partnership 
  • Partnership represents a significant milestone for Rimac Technology as it expands its scope from low-volume, high-performance applications to large-scale projects
  • Venture marks Rimac’s first partnership in the GCC region

RIYADH: Saudi Arabia’s first electric vehicle brand, Ceer, is set to equip its flagship models with high-performance, fully integrated Electric Drive Systems through a newly announced partnership with Croatia-based Rimac Technology.   

The automobile manufacturer, a joint venture between Saudi Arabia’s Public Investment Fund and Foxconn, aims to leverage Rimac’s expertise in performance powertrain technology to enhance its upcoming EV lineup.  

The agreement was formalized at a signing ceremony in Croatia attended by Ceer CEO James DeLuca and Rimac Technology CEO Mate Rimac. 

“We are delighted to be the first company and large-scale project in the GCC to partner with Rimac Technology to equip Ceer flagship vehicles with the most advanced high-performance electric drive systems and solutions,” said DeLuca.

“Rimac’s global reputation and know-how in designing leading-edge performance powertrain systems aligns perfectly with our strategic objectives of partnering with global industry leaders as we fulfill our commitment to delivering world-class, high-performance electric vehicles and revolutionizing the automotive industry in Saudi Arabia,” he added. 

The partnership represents a significant milestone for Rimac Technology as it expands its scope from low-volume, high-performance applications, such as the Rimac Nevera and Aston Martin Valkyrie, to large-scale projects.  

Rimac has recently increased its focus on electrification partnerships, including a long-term collaboration with BMW to supply high-voltage battery systems.  

“The collaboration with Ceer further solidifies Rimac Technology’s global electrification ambitions,” said Rimac.  

“This year alone we’ve announced several key partnerships, including with the BMW Group and Ceer, which will produce tens of thousands of electric drive systems and battery systems for leading OEMs (original equipment manufacturers) worldwide.” he added. 

This venture marks Rimac’s first partnership in the Gulf Cooperation Council region, positioning it to support Ceer’s vision of advancing the EV market in Saudi Arabia. 


Closing Bell: Saudi main index gains, closes at 12,106 points  

Closing Bell: Saudi main index gains, closes at 12,106 points  
Updated 11 November 2024
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Closing Bell: Saudi main index gains, closes at 12,106 points  

Closing Bell: Saudi main index gains, closes at 12,106 points  
  • MSCI Tadawul Index increased by 2.44 points, or 0.16%, to close at 1,521.20
  • Parallel market, Nomu, dropped by losing 87.15 points, or 0.30%, to close at 29,161 points

RIYADH: Saudi Arabia’s Tadawul All Share Index rose by 0.03 percent or 3.25 points to reach 12,106.41 points on Monday.   

The total trading turnover of the benchmark index was SR7.49 billion ($1.99 billion), as 92 stocks advanced, while 133 retreated.   

The MSCI Tadawul Index increased by 2.44 points, or 0.16 percent, to close at 1,521.20.    

The Kingdom’s parallel market, Nomu, dropped by losing 87.15 points, or 0.30 percent, to close at 29,161 points. This comes as 39 stocks advanced, while as many as 41 retreated.   

The index’s top performer, Alandalus Property Co., saw a 5.47 percent increase in its share price to close at SR24.70.   

Other top performers included Rasan Information Technology Co. and Dar Alarkan Real Estate Development Co., with share prices rising by 5.16 percent to SR83.60 and 5.09 percent to SR17.76, respectively.  

Al-Omran Industrial Trading Co. and Dr. Soliman Abdel Kader Fakeeh Hospital Co. also recorded positive trajectories today, with share prices rising by 4.18 percent to SR39.85 and 3.74 percent to SR61.10, respectively.   

On the announcement front, Arabian Drilling has secured a 10-year contract extension for one of its land rigs with Saudi Aramco, the company announced today in a bourse filing. 

The extension is set to commence immediately after the current agreement concludes in the fourth quarter of the year. The estimated backlog associated with the new contract is valued at approximately SR440 million. 

Ghassan Mirdad, CEO of Arabian Drilling, highlighted the significance of the extended partnership with Saudi Aramco. 

“We are very pleased with the contract extension as we continue to build on our long-term partnership with Aramco and deliver exceptional service,” Mirdad said. 

“The material backlog of approximately SR440 million will support our future growth,” he added.  

Arabian Drilling closed Monday’s trading session with a 2.11 percent increase in its share price to reach SR116.20. 

The Middle East Paper Co. announced that its subsidiary, Juthor, has signed an agreement with Austria-based Andritz AG for the procurement, supply, and installation of a main production line machine. 

The contract encompasses the purchase of a complete tissue paper production line, with an annual capacity of 60,000 tonnes and a speed of 2,100 meters per minute. 

The agreement value represents less than 25 percent of MEPCO’s total revenue, as reported in its most recent audited financial statement. The duration of the deal is set for 24 months, with the monetary impact expected to begin in the fourth quarter of 2026. 

MEPCO also released its financial results for the first nine months of the year, recording SR775.4 million in revenue, a 20 percent increase compared to the same period last year. 

The company recorded losses of SR33.7 million, an improvement on the SR50.1 million last year. 

MEPCO’s share price dropped by 0.51 percent by Monday’s close to settle at SR38.95. 

Middle East Specialized Cables Co. also released its financial results for the same period to record a 24.9 percent year-on-year revenue increase. 

The company saw SR830.4 million in sales and SR68.7 million in net profits, a 78.9 percent increase from last year. 

Revenue growth was mainly driven by higher sales order volumes across all sectors, particularly in the oil and gas segment. The company secured a greater number of bids and orders compared to the same period last year. 

The net profit surge was attributed to increased sales volume, improved profit margins, and enhanced operational efficiency during the current period. 

The company’s share price dropped 2.37 percent by Monday’s close to settle at SR37.10.