MEA Tech & Startup Digest: Issue #83

Author

Mehmet Gonullu
September 08, 2024

Welcome to the 83rd edition of " The CTO Show's MEA Tech & Startup Digest" Weekly Newsletter! If you're new here, I extend a warm welcome to you, joining our dynamic community of 2059 subscribers across LinkedIn and Beehiiv. Your presence, whether as a first-timer or a loyal follower, is the heartbeat of this platform dedicated to unfolding narratives in tech, startups, and entrepreneurship.

 What is inside?

-      Weekly Startup Insights From Middle East, Türkiye & Africa

-      Episodes Recap

-      Useful Resources

 Let's not wait any longer and dive into this week's rich insights!

 

 🌍 Regional Investment Highlights & Startup Insights:

 Tech and Software

 Scandium, an African software testing startup co-founded by Abdulazeez Ogunjobi, is gaining attention with a 90% profit margin within just a year of operation.

Scandium’s success stems from its simple yet effective approach to software testing, attracting significant interest, including from a bank’s CTO. Despite competition from larger international firms, Scandium’s straightforward methods have positioned it as a strong contender in the tech industry.

         •        Sector: Software/Tech

         •        Type: Startup Success

 

Fintech

 Since 2018, Saudi fintech startups have raised over $1.84 billion in venture capital investments, driven by initiatives like the Fintech Saudi program, part of Vision 2030.

Saudi fintech startups now employ more than 6,500 people, and the sector is the largest in the MENA region. With a goal of establishing 525 fintech companies and creating 18,000 jobs by 2030, the sector is expected to contribute $3.5 billion to the economy, supported by regulatory initiatives from the Saudi Central Bank (SAMA).

         •        Sector: Fintech

         •        Type: Venture Capital Investment

 

UAE-based fintech Ziina has raised $22 million in a Series A funding round led by Altos Ventures.

Founded in 2020 by Faisal and Sarah Toukan, Ziina offers simple payment solutions through its app and has seen significant growth, including a tenfold increase in annual revenue. The funds will fuel Ziina’s expansion into full financial services for businesses and consumers, starting with the ZiiCard, and support entry into new markets like Saudi Arabia and Jordan.

         •        Sector: Fintech

         •        Type: Series A Funding

 

Saudi fintech Malaa has secured $17.3 million in a Series A funding round led by SNB Capital.

Founded in 2021, Malaa offers wealth management tools that help individuals and organizations make informed financial decisions through data-driven products and services. This new funding will support the launch of a range of investment and savings products, as well as enhance Malaa’s compliance, governance, and cybersecurity systems.

         •        Sector: Fintech

         •        Type: Series A Funding

 

Tabby, the UAE-based BNPL fintech, has announced its acquisition of Saudi fintech Tweeq.

Founded in 2020, Tweeq offers a spending account that enables users to manage, spend, and send money. This acquisition allows Tabby to expand its financial services by integrating Tweeq’s digital wallet, offering spending accounts, cards, and money management tools. The deal aligns with Saudi Vision 2030’s goal of boosting digital financial services.

         •        Sector: Fintech

         •        Type: Acquisition

 

Saudi Arabia’s fintech sector received a significant boost with the launch of a $213 million venture capital fund by 1957 Ventures.

Announced at the 24 Fintech event in Riyadh, the fund aims to build and launch fintech startups and innovative financial solutions in the Kingdom. Saudi Arabia captured 58% of all venture capital investments in MENA’s fintech sector in 2023, with the market value expected to reach $2.40 billion by 2029.

         •        Sector: Fintech

         •        Type: Venture Capital Investment

 

Riyadh Valley Company, the investment arm of King Saud University, has invested in Raed Ventures’ third fund to support startups in fintech, transportation, and retail.

This investment aligns with Riyadh Valley’s goal of supporting startups locally and globally, contributing to King Saud University’s objectives and Saudi Arabia’s Vision 2030.

         •        Sector: Fintech/Tech

         •        Type: Investment

 

SaaS

 

UAE-based SaaS provider Reachware has secured $3 million in Seed funding led by Sadu Capital.

Founded in 2021, Reachware offers services like system integration, process automation, and advanced analytics. The funding will be used to expand operations, develop new products, and enhance sales and marketing efforts in the GCC region.

         •        Sector: SaaS/Tech

         •        Type: Seed Funding

 

123FormBuilder, a data collection and automation platform in the portfolio of Turkey’s 212 fund, was acquired by Kiteworks.

212 achieved a 2.5x return on its investment in the Romania-based 123FormBuilder, which it backed four years ago. This exit highlights the success of 212’s investment strategy.

         •        Sector: SaaS/Tech

         •        Type: Acquisition

 

Cleantech

 

Tunisia-based cleantech Wattnow has secured a multi-million dollar funding round to support its global expansion.

Founded in 2018, Wattnow offers IoT-based smart energy management solutions, enabling companies to monitor and control energy usage in real time. The funding will support Wattnow’s growth and technological advancements.

 

         •        Sector: Cleantech

         •        Type: Multi-million Dollar Funding

 

African climate tech startups captured 45% of total funding in the first half of 2024, surpassing fintech.

Investments focused on sectors like logistics and transport, which secured $215 million, and energy and water, receiving $132 million. This reflects a growing focus on sustainable solutions and infrastructure in Africa.

 

         •        Sector: Cleantech

         •        Type: Investment and Growth

 

Healthtech

 

Saudi-based healthtech Thakaa Med secured Seed funding from Falak Angels to advance its AI-driven healthcare solutions.

Founded in 2022, Thakaa Med focuses on predictive, preventive, and personalized care. The funding will enhance its AI models and support its market launch, aligning with Vision 2030.

 

         •        Sector: Healthtech

         •        Type: Seed Funding

 

Turkey-based neurofeedback mobile app Auto Train Brain received an $8.2 million valuation investment from Pera Yatırım Holding AŞ.

The app uses AI and EEG technology to provide personalized brain training for individuals with learning difficulties. The investment will support Auto Train Brain’s global expansion.

 

         •        Sector: Healthtech/Neurotech

         •        Type: Valuation and Investment

 

Autotech

 

Saudi autotech company Syarah raised $60 million in a Series C funding round led by Artal Capital.

Founded in 2015, Syarah offers an online platform for purchasing new and used cars, providing services like free car inspection reports, a five-day money-back guarantee, and a one-year warranty. The funds will support Syarah’s expansion and growth in Saudi Arabia’s used car market.

 

         •        Sector: Autotech

         •        Type: Series C Funding

 

AdTech

 

Turkish AdTech company Magfi raised €1 million to expand into the Brazilian market.

Founded in 2021, Magfi enables micro-targeted advertising on Telegram and Discord by analyzing public group data to predict audience engagement. The funding will support Magfi’s expansion and continued growth.

 

         •        Sector: AdTech

         •        Type: Seed Funding

 

Open Banking

 

UAE-based open banking platform Tarabut has acquired UK fintech Vyne to enhance its payment solutions across the MENA region.

Vyne’s advanced A2A payment technology will be integrated into Tarabut’s operations, starting in Bahrain and expanding to Saudi Arabia and the UAE. The acquisition strengthens Tarabut’s position as a leader in financial services.

 

         •        Sector: Open Banking/Fintech

         •        Type: Acquisition

 

HRTech

 

UAE-based HRtech startup Cercli raised $4 million in Seed funding led by Afore Capital.

Founded in 2023, Cercli provides a unified platform for businesses to manage their global workforce, reducing compliance costs and eliminating human error. The new funds will support Cercli’s growth and help attract top talent.

 

         •        Sector: HRTech

         •        Type: Seed Funding

 

ERP Solutions

 

UAE-based Hulexo raises Seed investment from Arzan VC to revolutionize retail ERP solutions.

Founded in 2021, Hulexo offers customized, subscription-based ERP solutions for small and medium-sized retailers. The company aims to expand to 300 retail locations by 2025 and enter the Kuwaiti and Saudi markets.

 

         •        Sector: ERP Solutions

         •        Type: Seed Funding

 

Energy and Infrastructure

 

GE Vernova buys remaining stake in Saudi gas turbine JV from Dussur.

GE Vernova became the sole owner of the General Electric Saudi Advanced Turbines (GESAT) JV after acquiring the remaining 55% stake from Dussur. The JV has produced over 200 gas turbine modules for power plants across 10 countries.

 

         •        Sector: Energy/Infrastructure

         •        Type: Acquisition

 

🎙️Episodes Recap:

 

 

In this episode of The CTO Show with Mehmet, we have the pleasure of speaking with Geoffrey Huck , a former tech professional turned public speaking coach. Geoffrey shares his incredible journey from being a self-described introvert with a deep passion for computers and algorithms to becoming a confident public speaker and influencer in the tech community.

 

 

In this episode of The CTO Show with Mehmet, we are joined by Rob Futrick , the CTO of Anaconda, for an in-depth discussion on how Anaconda is positioning itself at the forefront of the AI revolution. Rob shares his impressive journey in the tech industry, from his first startup over 25 years ago to his time at Microsoft, where he led product teams for high-performance computing and AI software. He now leads engineering at Anaconda, a company with a strong legacy in Python and data science, and is excited about its future role in AI.

 

 

In this episode of The CTO Show with Mehmet, we are joined by Glyn Roberts , CTO of Digital Solutions at Vention. With over 20 years of experience in the tech industry, Glyn has climbed the leadership ladder from a developer to overseeing a global team of over 3,000 engineers across 20 countries. Glyn shares his insights on the key challenges and strategies for managing distributed teams in a remote-first world.

 

🔗 Useful Resouces: 

-      iAccel Gulf Accelerator: iAccel Gulf Business Incubator (“iAccel GBI”) is a Global Accelerator Network (GAN) certified accelerator that aims to help early-stage tech startups turn their innovative ideas into successful businesses in MENA Region.

-      Wows Global: This investment portal offers you the tools and support to connect with investors, manage your stakeholder relations, and navigate your financing requirements effectively. Start by listing your company and get guided  towards your financing goals. Join and gain the attention of the biggest investors in the ASEAN & MENA regions.

 

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

 

Best, Mehmet