MEA Tech & Startup Digest: Issue #108

Author

Mehmet Gonullu
March 02, 2025

Welcome to the 108th  edition of “The CTO Show’s MEA Tech & Startup Digest”!

 

This week's digest brings you exciting developments from key markets in the MEA region, featuring groundbreaking investments and strategic initiatives shaping the regional tech ecosystem.

From funding announcements to strategic acquisitions, we're tracking the pulse of innovation and growth across the Middle East and Africa's technology landscape.

 

Whether you're one of our 2409 subscribers or new to our community, we're excited to share these valuable insights into tech, startups, and entrepreneurship.

 

Grab your coffee and let's unpack what's making headlines!

 

🌟 Featured Story

Convertible Debt: A Solution for MENA's Funding Gap

SMEs in the MENA region face significant financing challenges that convertible debt could help address.

Key Insights:

· Convertible debt offers flexible terms for SMEs seeking capital

· Allows businesses to delay valuation discussions

· Important for SMEs to carefully assess terms before committing

💰 Notable Funding Rounds

QIA's $1-Billion Initiative Attracts Six VC Firms to Qatar

Qatar Investment Authority launches major $1 billion Fund of Funds programme to boost the local startup ecosystem.

Key Insights:

· Six major VC firms establishing regional HQs in Qatar

· Focus on tech and healthcare sectors

· Initiative seeks to close funding gap for regional entrepreneurs

Flow48 Raises $69M Series A for SME Lending Expansion

UAE-based fintech Flow48 secures major funding to expand operations in Saudi Arabia and South Africa.

Key Insights:

· $69M Series A led by Breega with multiple participating investors

· Uses AI-powered risk assessment for rapid fund disbursement

· Expanding platform capabilities for SMEs across new regions

OmnisPay Secures $1.5M Seed Funding for SME Cash Flow Management

UAE fintech OmnisPay raises seed round to enhance its all-in-one platform for businesses.

Key Insights:

· $1.5M seed funding led by Mercatus Capital

· Platform integrates payment collection, disbursements, and cash flow management

· Already onboarded 1,600+ businesses with rapid growth

Lillia Receives $1.7M Grant for Digital Twin Health Technology

Qatar-based AI healthtech startup secures grant to advance chronic disease management solutions.

Key Insights:

· $1.7M grant from Qatar Research, Development, and Innovation Council

· Developing digital twin technology for real-time health monitoring

· Plans expansion across MENA and Southeast Asia regions

Lola Secures $1.3M Pre-Seed for GCC Expansion

Bahrain-based foodtech startup raises funding to revolutionize cake customization across the GCC.

Key Insights:

· $1.3M pre-seed round led by Plus VC and Vision Ventures

· Innovative mobile app for personalized cake design

· Expanding from Bahrain to Saudi Arabia and UAE

Saudi Arabia's CQR Raises $3M for AI Cybersecurity

Saudi Arabian cybersecurity firm CQR secures funding to enhance AI capabilities for critical infrastructure.

Key Insights:

· $3M funding round led by Shorooq Partners

· Product-based cybersecurity solutions for industrial environments

· Shifting from service-heavy to scalable product-centric approaches

Gozem Secures $30M Series B for Super App Expansion

Francophone Africa's leading super app raises significant funding to accelerate growth across West and Central Africa.

Key Insights:

· $30M Series B ($15M equity, $15M debt)

· Evolved from moto-taxi service to multi-service platform

· Enhancing transport services and digital banking platform rollout

🤝 Partnerships & Collaborations

DHL Acquires Minority Stake in Saudi Logistics Company AJEX

Global logistics giant DHL expands its Middle East presence through strategic investment.

Key Insights:

· Minority stake acquisition enhances DHL's regional footprint

· AJEX maintains leadership of the business

· Collaboration leverages DHL's e-commerce expertise

Kayacan Ventures Launches AI Acceleration Program

Turkish investment firm introduces program with guaranteed investment for AI startups.

Key Insights:

· Total planned investment of $3M across 100 AI startups

· Provides sales-oriented training, mentorship, and funding

· Applications open until April 1, 2025

Al Madinah Angels Launches to Boost Local Entrepreneurship

New consortium aims to invigorate the entrepreneurial ecosystem in Al Madinah, Saudi Arabia.

Key Insights:

· Partnership between Value Makers Studio, Al Madinah Chamber, and Numu Angels

· Offers strategic partnerships and mentorship beyond capital

· Featured pitches from six local startups at launch event

🚀 Market Expansion

Libyan B2B E-Commerce Platform Alkremeya Officially Launches

Libya's pioneering B2B e-commerce platform goes live to revolutionize the country's grocery supply chain.

Key Insights:

· Connects retailers directly with importers and wholesalers

· Plans to invest in AI and machine learning for enhanced analytics

· Targeting expansion across North Africa and MENA region

Egypt's Basata Increases Stake in Jordan's MadfoatCom

Egyptian fintech expands its presence in Jordan to enhance regional digital financial inclusion.

Key Insights:

· Stake increased to 25% in Jordan's leading electronic payment provider

· Collaboration with major Jordanian financial institutions

· Supports Jordan's digital transformation agenda

🎯 Strategic Moves

Dubai-Based Disrupt.com to Invest $100M in AI Startups

Venture capital firm announces major investment in AI startups at the intersection of Web3 and other sectors.

Key Insights:

· $100M investment targeting cybersecurity, automotive, and retail

· Founders previously built Cloudways (acquired for $350M)

· UAE remains largest VC market in MENA despite regional funding decline

Fawry Deploys $1.6M Investment in Egyptian Fintech Startups

Egypt's leading fintech company makes strategic investments in three local technology firms.

Key Insights:

· Acquired majority stakes in Dirac Systems, Virtual CFO, and Code Zone

· Expands "Fawry Business" suite offerings

· Supports Egypt's digital transformation and cashless economy initiatives

NetSafe Angel Acquiring Angel Effect

Turkish tech investment company acquires prominent angel investment platform in landmark deal.

Key Insights:

· Deal valued at up to $3M, combining cash and stock

· First Turkish-founded company to acquire angel firm with global footprint

· Angel Effect has investments in 19 startups across AI and healthcare

Mastercard Foundation Exits Africa's Top VC Firm

Major foundation withdraws $100M commitment from 54 Collective, impacting African startup funding.

Key Insights:

· Withdrawal exacerbates funding challenges for early-stage startups

· Potential impact on innovation and economic growth in the region

· Signals changing priorities in African venture capital landscape

📊 Market Trends

Egypt's Fintech Sector Surges Fivefold in Recent Years

Entlaq report reveals dramatic growth in Egypt's fintech ecosystem, highlighting opportunities and challenges.

Key Insights:

· 5.5x expansion driven by digital payments and B2B marketplaces

· Government initiatives promote financial inclusion

· 177+ fintech startups and payment service providers active in Egypt

 

 

🔍 Worth checking out: 

 

Apple's Massive US Investment & iPhone 16e Announcement: Apple declared a substantial investment of over $500 billion in the U.S. over the next four years, focusing on expanding teams and facilities across multiple states. This announcement was coupled with the unveiling of the iPhone 16e, which boasts a powerful A18 chip and Apple's first-ever in-house designed cellular modem, promising enhanced speed, performance, and battery efficiency. This news signals a significant commitment to domestic growth and technological advancement from a tech giant. Apple Newsroom - Apple will spend more than $500 billion in the U.S. over the next four years

 

 

Cybersecurity Incident at Bybit: Crypto exchange Bybit experienced a massive security breach, with hackers stealing $1.5 billion. This event is the largest crypto heist in history and underscores the growing importance of cybersecurity in the digital finance space. BTW Media - Top tech news today: February 24, 2025

 

UAE and Italy Strengthen Investment Ties: The United Arab Emirates and Italy signed three Memoranda of Understanding to enhance mutual investments. This collaboration focuses on strengthening cooperation in key sectors like pharmaceuticals, minerals, data centers, and Artificial Intelligence, indicating strong international investment trends. Emirates News Agency - UAE, Italy sign three investment memoranda to facilitate cooperation in pharmaceuticals, minerals, data centres, AI | Emirates News Agency

 

 

 

🎙️Episodes Recap:

 

 

Struggling to scale your tech team? Not sure when to move beyond an agency and build in-house? In this episode, we dive deep into engineering team optimization, startup scaling challenges, and the future of AI in development with Vygandas Pliasas—a Fractional CTO and expert in engineering management.

 

 

 

In this episode of The CTO Show with Mehmet, we dive deep into the future of finance with Agne Linge, Head of Growth at WeFi. Fresh from Davos, Agne shares insights into the latest trends in DeFi, AI-powered fintech, and the evolving global economy. We explore how blockchain and AI are reshaping banking, why traditional financial institutions are falling behind, and how decentralized finance is unlocking economic freedom worldwide.

 

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Thank You 🙏: Your engagement drives our shared journey forward. Here's to another week of innovation and growth!

 

Best, Mehmet