Arab News, Sat, May 25, 2024 | Dhu al-Qadah 17, 1445
Startup Wrap – regional startup activity flourishes
Saudi Arabia:
The startup ecosystem in the Middle East and North Africa region saw a flurry of
activity as venture investments and acquisitions bloom.
Saudi Arabia-based Software-as-a-Service provider
Merit has raised $12 million in its pre-series B funding round, led by
Alistithmar Capital i-Cap and followed by existing series A investors Tech
Invest Com and Hambro Perks Oryx Fund.
Founded in 2016 by Julie Barbier-Leblan and
Thrishan Padayachi, Merit assists businesses in increasing customer and employee
engagement via a suite of cloud-based SaaS platforms, enterprise solutions,
applications, and software.
This new round will help Merit develop its
technology to enhance customer engagement. In 2021, Merit raised $5 million in a
series A round led by Saudi Arabia’s Impact46, along with Tech Invest Com, Arzan
VC, Hambro Perks Oryx, and several regional angel investors.
Riyad Capital launches 1957 Ventures to support
digital transformation
Riyad Capital, backed by Riyad Bank, has launched
the 1957 Ventures investment fund to drive transformative growth in Saudi
Arabia’s fintech sector.
The fund aims to accelerate the Kingdom’s digital
transformation by creating opportunities for innovative fintech business
models.
Abdullah Alshwer, CEO of Riyad Capital, stated,
“The 1957 Ventures Fund embodies a forward-thinking financial vision aligned
with the Kingdom’s ambitious digital transformation goals; this fund signifies a
strategic investment in the future of Saudi fintech.”
“Our institutional approach will unlock new levels
of innovation, driving both sector growth and sustainable economic impact,” he
added.
Saudi logistics startup MDD closes $1.3m series A
round
Saudi Arabia-based logistics startup MDD has
closed its series A round with $1.3 million in funding for a 5 percent stake
with a valuation of $26 million.
Founded in 2019, MDD provides supply chain
solutions for businesses.
Saudi startup Sorbet’s raises funding round from
web3 VC Adverse
Saudi web3 startup Sorbet raised an investment
round from the Kingdom’s recently announced venture capital firm Adverse.
Founded by Rami Djebari and Maher Ayari, Sorbet
aims to simplify business processes for freelancers by cutting fees and
intermediaries.
“Receiving support from an experienced partner
like Adverse will accelerate our development and enhance our market strategy.
This collaboration is a milestone in breaking down financial barriers and
enabling limitless growth opportunities for professionals in the region,”
Djebari said.
Egyptian fintech e-Finance acquires stakes in Al
Ahly Momken and EasyCash
Egypt-based fintech e-Finance for Digital and
Financial Investments has acquired a 25 percent stake in Al Ahly Momken and a 13
percent stake in EasyCash for Digital Payments for an undisclosed deal value.
Founded in 2005, e-Finance is involved in the
development of digital payment infrastructure and digital space to help achieve
social development goals.
Al Ahly Momken, based in Egypt, is a digital
payment provider, serving over 90,000 merchants and more than 5 million
customers.
Meanwhile, EasyCash, also based in the north
African country, provides payment services for individuals, merchants, and
businesses.
These acquisitions align with e-finance’s strategy
to expand its footprint in the digital payments market and support Egypt’s
Vision 2030 for digital transformation.
Egypt’s OneOrder closes $16m series A round
Egypt-based logistics startup OneOrder has raised
$16 million in a series A round in a mix of equity and debt, led by Delivery
Hero Ventures, with participation from Norrsken22 and existing investors, Nclude
and A15.
Founded in 2022 by Tamer Amer and Karim Maurice,
OneOrder is a tech-enabled supplier and wholesale distributor that offers the
food and beverages industry a supply of quality goods with embedded financing.
The company plans to expand into the Gulf
Cooperation Council region by the fourth quarter of 2024. In December 2022,
OneOrder closed a seed round at $3 million.
Jordan’s fintech liwwa takes $5m loan
Jordan-based fintech liwwa has secured a $5
million loan from the US International Development Finance Corp..
Founded in 2013 by Ahmed Moor and Samer Atiani,
liwwa is a peer-to-peer lending network that connects investors and small
businesses through smart business loans.
The latest cash influx will enable liwwa to
finance further small and medium sized enterprises across various sectors.
Liwwa’s last funding round was in 2022, when it raised $18.5 million in a
pre-series B round of equity and debt.
Egyptian investment bank EFG Hermes acquires stake
in Danish wealth management firm
Egypt’s investment bank, EFG Hermes, a subsidiary
of EFG Holding, has acquired a minority stake in the Danish digital wealth
manager Kenzi Wealth for an unknown value.
The new partnership will enhance EFG Hermes’
digitalization vision. By combining EFG Hermes’ client network and Kenzi
Wealth’s AI tools, EFG Hermes will be able to offer its clients a more efficient
and personalized investment experience.
Founded in 2021 by Mohamed El-Masri, Kenzi Wealth
specializes in tailoring investment features to meet the needs of investors.
UAE’s Plain Tiger raises funding round
UAE-based business-to-business marketplace Plain
Tiger has raised an investment from UAE’s venture capital firm AngelSpark for an
undisclosed amount.
Founded in 2021 by Alexandra Polson and Oliver
Baillie, Plain Tiger connects hotels with eco-friendly suppliers, saving them
time, money, and reducing their environmental impact.
The investment is part of Plain Tiger’s $1.5
million seed round, which will be used to expand into Saudi Arabia and
accelerate more hotels’ pathway to net zero procurement.
UAE’s Revent closes $900k in pre-seed round
UAE-based electronics marketplace Revent has
raised $900,000 in a pre-seed round, provided by Techstars and a group of angel
investors.
Founded in 2022 by Baldeep Singh and Dhananjay
Choubey, Revent offers SMEs pre-owned devices on monthly subscriptions across
the UAE and Saudi Arabia.
The funds will be used to build a self-service
platform for businesses, along with growing Revent’s client base in Saudi
Arabia.
UAE’s proptech Keyper closes $4m equity round
UAE-based proptech Keyper has raised $4 million in
equity in a pre-series A round, led by BECO Capital and Middle East Venture
Partners, with participation from existing investors Vivium Holding, Jabbar
Group, Signature Developers, and new investors Annex Investments, Pin
Investment, and Al Qahtani Investment, among other angels.
The company has also received an additional $30
million in Shariah-compliant sukuk financing from global asset manager Franklin
Templeton Investments Ltd., bringing its cumulative capital raised to-date to
over $40
million.
Founded by Omar Abu Innab and Walid Shihabi in
2022, Keyper offers a property management platform where tenants can track their
expenses and charge online, and investors get real estate portfolios and access
to data-driven insights.
Keyper will invest the fresh funds into digitizing
the rental experience in the UAE and scaling its innovative rent now, pay later
solution. Last October, Keyper raised a $6.5 million seed round.
UAE’s proptech Huspy raises investment round
UAE-based property technology firm Huspy has
raised a fresh investment round led by Balderton Capital, with further
participation from existing investor Fifth Wall, amongst other investors.
Founded in 2020 by Jad Antoun and Khalid Ashmawy,
Huspy facilitates the home buying and financing process through its online
marketplace.
The company claims that this round of funding is
at a higher valuation than the $37 million series A raised in 2022. The newly
acquired capital will be deployed to build a super app for real estate.
Egypt’s proptech Birdnest raises pre-series A
round
Egypt-based proptech Birdnest has closed an
undisclosed pre-series A funding round for a 20 percent stake in the company,
led by Beltone Venture Capital and CI Venture Capital.
Founded in 2020 by Mostafa El-Nahawy and Ahmed
Fadda, Birdnest offers furnishing services and rental management solutions to
ensure maximum returns for real estate investors and value for tenants.
The funds are earmarked for the expansion of the
regional quality team, the enhancement of proprietary technologies, and
marketing initiatives to reinforce Birdnest’s market position.