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- MEA Tech & Startup Digest: Issue #90
MEA Tech & Startup Digest: Issue #90
Mehmet Gonullu
October 27, 2024
Welcome to the 90th edition of “The CTO Show’s MEA Tech & Startup Digest”! 🎉
Welcome to this week’s edition of our newsletter, where we delve into the latest developments and trends within the MENA and emerging markets startup ecosystems. Over the past week, we’ve witnessed significant funding rounds, strategic acquisitions, and insightful movements shaping the future of technology and innovation in the region. As we aim to educate and demonstrate thought leadership, let’s explore these developments categorized for your convenience.
Whether you’re one of our 2,132 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!
Fintech and Digital Payments
Saudi B2B Fintech Mala Raises $7 Million Pre-Seed Funding
Mala, a Saudi-based B2B fintech platform, has secured $7 million in pre-seed funding led by VentureSouq, Shorooq Partners, and other notable investors. Founded by Musaab Hakami in 2024, Mala offers a “Procure-Now, Pay-Later” (PNPL) solution designed to support SMEs by providing flexible credit terms while ensuring suppliers receive immediate cash. With plans to launch in Q4 2024, Mala aims to address the region’s significant credit gap, leveraging proprietary technology to offer precise credit risk assessments and improve liquidity for suppliers.
HALA Payments Joins Saudi Unicorns Programme
HALA Payments, a Riyadh-based fintech founded in 2018 by Esam Alnahdi and Maher Loubieh, has been selected for the Saudi Unicorns Programme. Aligned with Saudi Vision 2030, the programme aims to foster innovation, economic diversification, and digital transformation by supporting high-potential startups to achieve unicorn status. HALA offers SME banking and freelance solutions, having processed over $7 billion in transactions for more than 110,000 merchants. With support from the programme, HALA plans to expand globally, enhance its digital financial services for MSMEs, and contribute to Saudi Arabia’s fintech leadership.
Startup Ecosystem Growth and Investments
Türkiye’s MUSIWARS Secures $3 Million Investment to Revolutionize the Music Industry
MUSIWARS has obtained a $3 million investment to enhance its global presence in the music industry. The platform ensures secure registration and sale of works for songwriters and composers, aiming to protect creators’ rights and support international growth. With official accreditation from the Turkish Ministry of Culture and Tourism, MUSIWARS plans to become a key player in the digital music market by providing sustainable solutions and greater opportunities for artists.
Turkish Startups Attract $754 Million in Nine Months
As reported by Hurriyet Daily News, Turkish startups attracted $754 million across 323 investment rounds in the first nine months of 2024, signaling a recovery in the ecosystem. Healthcare, biotech, and AI sectors led in attracting funds, while early-stage ventures saw increased investments. Seed-stage funding rose, and there was renewed foreign investor interest, reflecting growing confidence in the Turkish startup scene.
Mubadala Capital Closes $3.1 Billion Private Equity Fund IV
Mubadala Capital has closed its fourth private equity fund, MIC Capital Partners IV, with total commitments of $3.1 billion, surpassing its $2 billion target. The fund attracted investments from diverse LPs, including U.S. pension funds, university endowments, and sovereign wealth funds. Fund IV targets middle-market companies across sectors like media, consumer services, and financial services, with portfolio investments including Fortress Investment Group and Canada Cartage.
Pakistani Workspace Platform Colabs Raises $2 Million Pre-Series A
Colabs, a Pakistani workspace platform, has raised $2 million in pre-Series A funding led by Shorooq Partners, bringing its total funding to over $5 million. Founded in 2019 by Omar and Ali Shah, Colabs operates flexible workspaces across Pakistan and plans to expand into Saudi Arabia, having already completed registration there. The company operates 10 locations with over 5,000 seats and has achieved profitability, partnering with global brands like EY and Coca-Cola.
Dubai Unveils Ignyte to Empower 100,000 Startups
Dubai has launched Ignyte, a digital platform aimed at accelerating the growth of 100,000 startups, unveiled by Sheikh Hamdan bin Mohammed. Developed by the Dubai International Financial Centre (DIFC), Ignyte aligns with Dubai’s Digital Economy strategy, focusing on connecting founders with a global network of 5,000 venture capitalists, 5,000 mentors, and 500 corporate partners, offering perks worth over $100 million.
E-commerce and Fashion Tech
Best Kept Shared Acquires BAZAARA to Expand Sustainable Fashion in UAE
UAE-based e-commerce platform Best Kept Shared has acquired peer-to-peer fashion resale platform BAZAARA. Best Kept Shared, founded in 2023 by Kelly Power and Sophie Kjøller, focuses on luxury fashion rental and resale, while BAZAARA, founded in 2021 by Alyssa Mariano, enables buying and selling pre-owned fashion items. The acquisition will merge BAZAARA’s network with Best Kept Shared’s infrastructure, expanding options for customers and supporting sustainable fashion. This move aligns with the global trend toward eco-friendly fashion and aims to position Best Kept Shared as a leading platform for luxury fashion in the UAE.
MENA E-commerce Grows by 80% Since 2020
Checkout.com’s The State of Digital Commerce in MENA 2024 report reveals a 658% surge in digital payment volumes since 2020, with 91% of consumers adopting digital payments. E-commerce in MENA has seen 80% growth in daily online shoppers, with half of consumers planning to increase their online spending in 2024. The report highlights the importance of regulatory advancements, collaboration among stakeholders, and digital solutions to enhance convenience, financial inclusion, and cross-border transactions.
Sustainability and Green Innovation
Viridia Tech Wins 2024 Mega Green Accelerator Grand Prize
Egypt-based agritech Viridia Tech won the 2024 Mega Green Accelerator, receiving a $100,000 grand prize for its AI-powered data analytics platform that supports sustainable farming. Saudi Arabia-based Mirai Solar secured second place with a $30,000 award for its solar-powered shade system. The accelerator featured eight MENA startups addressing food security, clean energy, and the circular economy, offering six months of mentorship, training, and networking opportunities to boost sustainability innovation in the region.
BURN Secures $15 Million to Scale Electric Cooking in East Africa
Clean cooking stove manufacturer BURN has secured a $15 million investment from the European Investment Bank (EIB) to scale up its IoT-enabled ECOA Induction Cooker across East Africa. The ECOA IDC features “Pay As You Cook” (PAYC) technology, allowing users to pay in installments via mobile money. The stoves aim to reach over 1 million households, reduce approximately 2.5 million tonnes of carbon emissions annually, and align with EIB’s climate action and gender equality goals.
Proptech and Real Estate Tech
UAE Proptech Prypco Raises $10 Million Seed Round
UAE-based proptech Prypco has raised $10 million in a seed round led by Shorooq Partners, with participation from Apparel Group and other investors. Founded in 2022 by Amira Sajwani, Prypco operates four verticals: Prypco Blocks (fractional real estate ownership), Prypco Mortgage (home loans), Prypco Exclusives (secondary property access), and Prypco Golden Visa (long-term residency). The funding will drive organic growth and expansion, aiming for $250 million ARR by 2027. To date, Prypco has disbursed over AED 500 million in mortgages and achieved AED 450 million in GMV.
Education Technology
Tadarab Expands into Saudi Arabia to Boost Online Education
Kuwait-based edtech Tadarab has expanded into Saudi Arabia to meet the growing demand for online education, aligning with Vision 2030’s emphasis on developing local competencies through digital learning. Founded in 2016 by Zaid Alluhaib and Salma Al-Yassin, Tadarab offers over 1,000 courses in collaboration with more than 550 trainers. The expansion aims to cater to Saudi Arabia’s diverse demographics, offering personal and professional development solutions for both individuals and companies while enhancing trust in online education.
Artificial Intelligence and Technological Innovation
Google Launches AI Startup Accelerator in MENA
Google has launched the Google for Startups Accelerator: AI First program, featuring 15 AI startups from MENA and Türkiye, at the Dubai Future Foundation Auditorium. The 10-week initiative offers startups access to Google’s technology, industry experts, and a supportive network. It aims to empower AI founders to address pressing regional challenges and drive innovation, growth, and societal progress in MENA and Türkiye.
Mobility and Transportation Tech
Invygo Raises $8 Million Series A Extension to Pursue Profitability
Saudi Arabia-headquartered mobility startup invygo has raised an $8 million Series A extension from STV’s newly launched NICE Fund and existing investors, including Al Rajhi Partners and MEVP. Founded in the UAE in 2019 by Eslam Hussein and Pulkit Ganjoo, invygo offers an app-based car subscription service across Saudi Arabia, UAE, and Qatar, focusing on its “Subscribe to Own” (STO) model. Having raised over $22 million to date, invygo has surpassed $100 million in annualized GMV and is nearing profitability, expected by the end of FY 2024.
Logistics and E-commerce Delivery Solutions
Pargo Expands into Egypt with $4 Million Investment
South Africa-based e-commerce logistics startup Pargo has expanded into Egypt following a $4 million investment led by 3Capital Ventures, Endeavor, SAAD Investment Holdings, and UW Ventures. Founded in 2014 by Lars Veul and Derk Hoekert, Pargo aims to enhance e-commerce delivery through a network of over 500 Pargo Points for collect-and-return services. The expansion addresses challenges like missed deliveries and high costs by offering convenient, cost-effective solutions.
Colis.ma Secures $300,000 Pre-Seed Funding to Enhance Cross-Border Logistics
Morocco-based logistics startup Colis.ma has secured $300,000 in pre-seed funding from Witamax to enhance its cross-border logistics services. Founded in 2022 by Issam Darui, Colis.ma targets individuals and SMEs, connecting Morocco with Europe and planning further expansion into West Africa. The startup aims to become a key logistics player between Africa and Europe by offering fast, reliable parcel delivery services.
Conclusion
The developments highlighted in this week’s digest reflect a vibrant and evolving landscape in the tech and startup ecosystems across the MENA region and beyond. From fintech innovations empowering SMEs to sustainable technologies addressing global challenges, these stories showcase the transformative power of entrepreneurship and innovation.
The significant investments and strategic expansions indicate robust investor confidence and the potential of emerging markets as hubs for technological advancement. Initiatives like Dubai’s Ignyte platform and Google’s AI accelerator underscore the importance of supporting startups through resources, mentorship, and global networks.
By fostering an environment conducive to innovation, collaboration, and investment, we can contribute to a more sustainable and prosperous global economy. Supporting initiatives that drive inclusive growth and address critical societal needs is essential for continued progress.
🎙️Episodes Recap:
In this episode of The CTO Show with Mehmet, we dive deep into the world of drone technology and startup innovation with Dario Valenza, founder of Carbonix. Broadcasting from Australia, Dario shares his unique journey from yacht racing to founding Carbonix, a company that is redefining long-range UAVs (unmanned aerial vehicles) for critical infrastructure monitoring, linear infrastructure, and other key applications.
In this episode of The CTO Show with Mehmet, we sit down with Alex Nocifera, a serial entrepreneur and the founder of Loma. Alex shares his insights on disrupting both AdTech and MarTech to enhance local brand engagement. With over two decades of experience in retail marketing, Alex has a deep understanding of the evolving dynamics in the advertising and marketing landscape. He discusses how his company, Loma, addresses the unique challenges faced by marketers, particularly those managing multiple storefronts.
In this episode of The CTO Show with Mehmet, we dive deep into the evolving world of industrial AI with Manas Talukdar, Director of Engineering at Labelbox. Based in the Bay Area, Manas has nearly two decades of experience in enterprise AI, data infrastructure, and distributed systems. Throughout his career, he has played pivotal roles in companies like C3 AI and OSIsoft, where he contributed to developing platforms for mission-critical industrial AI applications. In our conversation, Manas unpacks his journey from electrical engineering to working with leading AI platforms and shares valuable insights into the challenges and opportunities of data infrastructure in AI.
🔗 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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Best, Mehmet