MEA Tech & Startup Digest: Issue #84

Author

Mehmet Gonullu
September 15, 2024

Welcome to the 84th 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 2067 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!Bottom of Form

 🌍 Regional Investment Highlights & Startup Insights:

 

MENA Startups Secure $83 Million in August Amid Funding Dip

 

 Despite a notable decline from July’s $355 million, MENA startups raised a commendable $83 million across 30 funding rounds in August 2024. The UAE led the pack with startups securing $55.7 million. Fintech emerged as the most funded sector, attracting $54 million, followed by notable investments in Web3 and foodtech. Early-stage startups dominated the funding landscape, although investment in female-led ventures saw a decrease, comprising only 0.3% of the total funding.

 Highlights:

 

         •        New Fund Launch: The establishment of Waad Investment, a $200 million GCC-based fund, promises to invigorate the regional startup ecosystem.

         •        Mergers and Acquisitions: Several significant M&A deals were inked, signaling a maturing market ripe for consolidation and growth.

 

Entlaq Invests in Egypt’s Foodtech Innovator Brotinni

 

Entlaq, an Egyptian company dedicated to supporting entrepreneurship, has acquired a stake in Brotinni, a foodtech startup specializing in dark store technology for meat and poultry distribution. Founded in 2020 by Dalia Abu Omar, Brotinni is revolutionizing the food industry with eco-friendly technologies and efficient logistics solutions.

 

What This Means:

 

         •        Expansion Plans: The investment will fuel Brotinni’s expansion within Egypt and pave the way for regional market entry.

         •        Strategic Synergy: Leveraging Entlaq’s expertise in business development aligns with Brotinni’s mission to innovate sustainably in the food sector.

 

Oman’s IO Kitchens Raises $2.8 Million to Expand Cloud Kitchen Empire

 

 

IO Kitchens, an Oman-based cloud kitchen startup founded by Hisham Hasan in 2021, has secured $2.8 million in a seed funding round led by Tanmia Small-Cap Fund. Operating three cloud kitchens and managing over 30 F&B brands, IO Kitchens is set to scale its operations.

 

Future Outlook:

 

         •        Technology Enhancement: The funds will enhance their tech platform, optimizing operations and customer experience.

         •        Meeting Demand: Increased kitchen capacities will cater to the growing appetite for delivery-only meals in the region.

 

Turkey’s Sabancı Ventures Into US Renewable Energy Market

 

 

Turkish conglomerate Sabancı is expanding into the U.S. renewables sector through its venture arm, Sabancı Climate Ventures. With a focus on innovative cleantech startups, Sabancı aims to grow its renewable energy portfolio to 3 GW within five years, starting with solar projects in Texas.

 

Strategic Investments:

 

         •        Diverse Technologies: Investments span offshore wind, geothermal, and fusion energy technologies.

         •        Evergreen Fund Transition: Plans are underway to shift to an evergreen fund model, supporting long-term investments in emerging technologies.

 

Athar Accelerator Empowers Green Entrepreneurs in Upper Egypt

 

 

The Athar Climate Action Accelerator Programme celebrated the graduation of its fifth cohort in Minya, Upper Egypt. Ten startups showcased innovative solutions ranging from eco-friendly biopesticides to sustainable furniture.

 

Notable Achievements:

 

         •        Award Winner: DFC, a startup developing solar-powered EV charging stations, secured a $3,000 prize.

         •        Green Manifesto Launch: The event introduced the “Green Manifesto,” aiming to bolster support for underserved founders in the green sector.

 

Saudi PropTech Startup HissaTech Raises $670,000 Pre-Seed Funding

 

 

Founded in 2024 by Ali Alshareef, HissaTech has closed a $670,000 pre-seed funding round backed by angel investors. The platform facilitates co-ownership of properties, offering rental income and capital gains to investors with reduced entry barriers.

 

What’s Next:

 

         •        Customer Base Expansion: Funds will drive user acquisition and platform enhancements.

         •        Strategic Partnerships: Aiming to collaborate with key industry players to make real estate investment more accessible in Saudi Arabia.

 

FlapKap Secures $34 Million to Bridge SME Financing Gap

 

 

UAE-based fintech FlapKap has raised $34 million in a pre-Series A round combining debt and equity. Led by BECO Capital with participation from prominent investors like PayPal Ventures and QED Investors, the funding will accelerate FlapKap’s expansion across the GCC and MENA regions.

 

Key Focus Areas:

 

         •        SME Support: Offering revenue-based and embedded finance solutions to help SMEs scale.

         •        Technological Edge: Utilizing AI and open banking to streamline loan approvals and address the $180 billion SME financing gap in MENA.

 

Hub71 Welcomes 21 Startups in Cohort 15

 

 

Hub71, Abu Dhabi’s global tech ecosystem, has onboarded 21 startups for its 15th cohort, increasing its network to 243 supported ventures. Selected from over 1,228 applications, these startups have collectively raised more than $130 million.

 

Program Benefits:

 

         •        Diverse Opportunities: Startups will join specialized programs like Hub71+ ClimateTech and Hub71+ Digital Assets.

         •        Incentives: High-performing startups may receive equity incentives up to $68,000 (AED250,000), along with access to markets, talent, and capital.

 

Paymob Expands with Additional $22 Million in Series B Funding

 

 

Egypt-based fintech Paymob has secured an extra $22 million in its Series B extension round, bringing the total to $72 million. Led by EBRD Venture Capital and joined by investors like PayPal Ventures, the funds will support Paymob’s regional growth strategy.

 

Expansion Plans:

 

         •        Regional Footprint: Continuing to scale services across Egypt, UAE, Saudi Arabia, and Oman.

         •        Empowering SMEs: Enhancing digital payment solutions to help merchants thrive in the digital economy.

 

Azerbaijan Plans Second Venture Capital Fund to Boost Innovation

 

 

The Innovation and Digital Development Agency of Azerbaijan is in discussions with investors to establish the country’s second venture capital fund. Chairperson Inara Valiyeva highlighted this initiative during the Chain Reaction 2024 forum.

 

Strategic Goals:

 

         •        Investment Culture: Building a robust investment ecosystem within Azerbaijan.

         •        Talent Development: Over 10,000 individuals trained as junior IT specialists in the past two years.

         •        Global Integration: Efforts to attract international tech companies and provide subsidies for workforce development.

 

Turkish Startups Huma and Arf Raise $38 Million to Revolutionize Payments

 

 

In a significant funding round led by Distributed Global, Turkish fintech startups Huma and Arf have jointly raised $38 million. The investment saw participation from Hashkey Capital, Folius Ventures, Stellar Development Foundation, and TIBAS Ventures.

 

Impact on Payments:

 

         •        PayFi Ecosystem Expansion: Funds will enhance global payments using blockchain and stablecoins.

         •        Network Decentralization: Huma plans to launch the Huma Foundation to further decentralize its network later this year.

         •        Integration Goals: Aiming to integrate with major payment chains like Stellar and Solana to streamline cross-border transactions.

 

🎙️Episodes Recap:

 

 

In this episode of The CTO Show with Mehmet, we dive deep into the future of e-commerce with Dan Brownsher , CEO of Channel Key. Dan brings over a decade of experience in building and scaling e-commerce businesses, particularly on the Amazon platform. He shares his journey from founding a private label business to leading an Amazon-focused agency that manages over half a billion dollars in retail revenue annually.

 

 

In this episode of The CTO Show with Mehmet, we are joined by Tammy Klotz , a cybersecurity veteran and CISO with over 30 years of experience in IT and cybersecurity. Tammy shares her journey, starting in infrastructure roles and moving into cybersecurity leadership, currently holding her third CISO role in the manufacturing industry. She emphasizes the importance of translating cybersecurity risks into business risks and how this communication is vital for effective leadership.

 

 

In this episode of The CTO Show with Mehmet, we have the pleasure of hosting Mohammad Bahareth, an award-winning business consultant and entrepreneur from Saudi Arabia. Mohammad shares his personal journey, including his challenges with dyslexia and ADHD, and how they shaped his path to becoming a successful entrepreneur. His story is one of resilience, passion, and continuous learning, with valuable lessons for aspiring entrepreneurs across the MENA region and beyond.

 

🔗 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