MEA Tech & Startup Digest: Issue #86

Author

Mehmet Gonullu
September 29, 2024

Welcome to the 86th edition of “The CTO Show’s MEA Tech & Startup Digest”! 🎉

This week, we’re exploring how substantial investments in technology and innovative startups are reshaping the economic landscape across the Middle East and Africa. From sovereign wealth funds fueling AI advancements to groundbreaking climate tech solutions and significant funding rounds in mobility and edtech, there’s a wealth of innovation and opportunity to dive into.

Whether you’re one of our 2,086 subscribers or new to our community, we’re thrilled to have you join us on this journey of discovery and growth in tech, startups, and entrepreneurship.

Let’s dive into this week’s rich insights!

 1. Investment Trends in MENA and Africa

 

Middle Eastern Sovereign Wealth Funds Accelerate AI Investments

Middle Eastern sovereign wealth funds are increasingly investing in Silicon Valley’s AI startups. Nations like Saudi Arabia, UAE, Kuwait, and Qatar are diversifying their economies by injecting capital into tech sectors, leading to a fivefold increase in AI funding from the region.

 

Insight: This trend underscores the region’s commitment to innovation and presents co-investment opportunities in cutting-edge technologies.

 

 

Amplify Growth Partnership Launches $100 Million Debt Fund

 

Amplify Growth Partnership has introduced a $100 million growth debt fund targeting tech-focused companies in MENA, with an emphasis on the GCC. This initiative aims to fill the debt capital gap for startups from Series A to Series C stages.

 

Insight: Growth debt funds like Amplify provide alternative financing options, reducing dilution for founders and offering LPs exposure to high-growth companies with potentially lower risk.

 

 

Egypt’s EPEAVC and USAID Collaborate to Boost Venture Capital

 

The Egyptian Private Equity and Venture Capital Association (EPEAVC) and USAID have signed an MoU to enhance direct investment and venture capital efficiency in Egypt. The partnership focuses on strategic planning, capacity building, and policy reform to improve the investment climate.

 

Insight: Such collaborations can lead to a more robust ecosystem, making Egypt a more attractive destination for venture capital and foreign direct investment.

 

 

2. Startups and Funding Rounds

 

Kwiks Secures $827,000 to Revolutionize Recruitment

 

Morocco-based HRtech startup Kwiks has raised $827,000 from Azur Innovation Management. By connecting companies with freelance headhunters and utilizing AI-driven solutions, Kwiks aims to streamline the recruitment process.

 

Insight: The integration of AI in HR signifies a broader trend towards automation and efficiency in traditional industries, offering ripe investment opportunities.

 

 

Userguest Raises $2.4 Million to Optimize Hotel Revenues

 

Userguest, a Moroccan SaaS provider, secured $2.4 million in a Seed round led by Al Mada Ventures. The platform helps hotels increase direct revenue through personalized website messages and intelligent incentives.

 

Insight: With the travel industry rebounding, tools that enhance direct bookings can significantly improve margins for hotels, indicating strong growth potential.

 

 

EBRD Commits $3 Million to Palestine’s Ibtikar Fund II

 

The European Bank for Reconstruction and Development has invested $3 million in Ibtikar Fund II, which aims to support up to 25 early-stage Palestinian tech companies. The fund closed at $25 million, surpassing its initial target.

 

Insight: Investments in underrepresented markets like Palestine can yield high impact and returns, contributing to economic development and diversification.

 

 

Coral Raises $3 Million for Carbon Management Solutions

 

UAE-based climate tech startup Coral secured $3 million in a Seed round to scale its AI-driven carbon emission management platform. The startup integrates blockchain for transparency in carbon credits.

 

Insight: Climate tech is gaining traction as businesses seek sustainable solutions, making it a promising sector for impact investing.

 

 

SHIFT Receives $82.8 Million Investment from Merak Capital

 

Saudi mobility startup SHIFT raised $82.8 million from Merak Capital. Operating across 57 cities with over 12,000 vehicles, SHIFT offers car-sharing, rentals, chauffeur services, and logistics solutions.

 

Insight: The substantial investment reflects confidence in mobility solutions that align with Saudi Arabia’s Vision 2030, emphasizing infrastructure and technological advancement.

 

 

Mila Celebrations Raises $227,000 to Enhance Event Planning

 

Saudi Arabia-based Mila Celebrations raised $227,000 in a pre-Seed round. The platform offers comprehensive event planning services and has managed over 1,000 events.

 

Insight: The event industry in Saudi Arabia is booming, exceeding SAR50 billion annually. Platforms like Mila can capitalize on this growth by offering streamlined services.

 

 

Padash Secures $125,000 to Expand Q-Commerce in Iraq

 

Iraqi q-commerce startup Padash raised $125,000 in pre-seed funding. Offering instant food and grocery delivery within 5 to 20 minutes, Padash plans to expand within Erbil and launch in Baghdad next year.

 

Insight: Iraq’s emerging market presents untapped potential in q-commerce, mirroring successful models in other regions.

 

 

3. Market Challenges and Ecosystem Insights

 

Iraq’s Startup Scene: Untapped Potential Amidst Challenges

 

Five One Invest’s 2023 report highlights significant strides in Iraq’s entrepreneurial landscape but notes major barriers like investor risk aversion and regulatory complexities.

 

Insight: Identifying and addressing these bottlenecks can unlock substantial opportunities for early investors willing to navigate the challenges.

 

 

African Startups Struggle to Transition to Series A

 

Less than 5% of African startups that received seed funding have progressed to Series A. Factors include high costs of raising capital and lack of clear exit strategies.

 

Insight: This gap indicates a need for support mechanisms to help startups scale, presenting opportunities for investors to fill the void and potentially reap significant rewards.

 

 

4. Notable Movements in Real Estate Tech

 

Adam Neumann’s Flow Launches First Saudi Property

 

Flow, the real estate startup by Adam Neumann, launched Flow Narjis in Riyadh, marking its first international venture. The co-living development offers furnished apartments with modern amenities.

 

Insight: The expansion into Saudi Arabia aligns with the country’s push for economic diversification and modern living solutions, indicating a ripe market for innovative real estate models.

 

 

5. EdTech Developments

 

EdVentures Invests in Eight Egyptian EdTech Startups

 

EdVentures has expanded its portfolio to 22 companies by investing in eight new startups offering diverse educational solutions, from STEM courses to safe school transportation.

 

Insight: The edtech sector in Egypt is poised for growth, driven by a young population and increasing demand for innovative education solutions.

 

 

Closing Thoughts

The emerging markets of the MENA region and Africa are witnessing significant shifts, with increased investment activities, innovative startups, and evolving ecosystems

 🎙️Episodes Recap:

 

 

In this episode of The CTO Show with Mehmet, we sit down with Peter Curk , the CEO and CPO of Iconomi, a leading crypto portfolio management platform. Peter shares his journey from a non-technical background in industries like retail, energy, and telecommunications to leading a company at the forefront of crypto investments. He discusses the founding story of Iconomi, which was born from the need to simplify access to crypto investments for everyday users. With deep insights, Peter explains how the platform caters to both individual and institutional investors, providing a regulated and secure environment for managing digital assets.

 

 

In this episode of The CTO Show with Mehmet, we dive deep into the world of purpose-driven entrepreneurship with Elona Lopari , a seasoned entrepreneur and leadership coach who helps companies align purpose with profit. Elona shares her journey from climbing the corporate ladder in a Fortune 500 company to taking a bold leap into entrepreneurship, driven by a desire to find fulfillment and make a greater impact. She discusses the challenges of transitioning from a secure corporate job to the uncertain world of entrepreneurship, highlighting the personal development and mindset shifts required to make such a move.

 

 

In this episode of The CTO Show with Mehmet, Mehmet welcomes Matt Van Itallie , founder and CEO of Sema, to explore the evolving world of technical due diligence, particularly in the context of generative AI in coding and software acquisition. Matt shares his journey from a non-professional coder to leading SEMA, a company dedicated to bridging the gap between tech and non-tech teams. He explains how SEMA treats code as data and why understanding the nuances of software is essential, especially during moments of evaluation such as mergers, acquisitions, and investment decisions.

 

🔗 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