GCC Startup Ecosystem News | April 2020

Startup ecosystem, GCC startup news, MENA startup news, Dubai stimulus packages, uae stimulus package, KSA stimulus package, startup funding, Covid-19, Covid19, corona virus, corona pandemic, EMPG, OLX, OLX Group, 360Vuz, Yougotagift, Magnitt report, Magnitt Q1 2020 report, Investment Report, Kitopi funding, Vezeeta funding, Sellanycar, Nana, Halan, Hub71, ADGM, MENAbytes, Anghami, Careem, Careem Shop, Messenger Rooms, Facebook, Talabat, Tradeling, Transferwise, The Modist, Coworking, Kryptolabs, in5, StartupAD, Startupbootcamp, FinTech, Global Ventures, Alex Angels, DSOA, Dubai Silicon Oasis Authority, Dtec, Dtec Ventures, Dtec investments, Dubai VC, UAE Venture Capital, MENA VC, Dubai startup investor

Adapting to what now seems as the new normal, GCC countries launch stimulus packages and other measures to help entrepreneurs and boost economies. On the investment front, indications of the Covid-19’s ramification start to show as March shows a decline in the number of deals, with further impact expected to be seen in the coming months.

In this edition of the GCC Startup Ecosystem News, in addition to our regular news bits, we’ve dedicated a section (Covid-19 Startup Resources) to feature articles on COVID-19’s impact on the regional ecosystem along with relevant information for startups and SMEs to help them navigate the current landscape.

You can download a PDF version via this link: GCC Startup Ecosystem News Roundup – April 2020

HEADLINES

  • GCC governments provide support for entrepreneurs. In response to the disruptive impact of Covid-19 on economies and businesses, GCC countries launch stimulus packages and other economic measures to aid startups and SMEs during the crisis and help boost economies.
  • Covid-19 impact on startup investments to be seen post-Q1.  Funding results in Q1 remained positive but ramifications are expected to be seen in the coming months. Indications are starting to show in March which had a decline in the number of deals closed.
  • Merger of EMPG and OLX Group announced. Property portal group Emerging Markets Property Group (EMPG), and global classifieds business  OLX Group, announced their merger in Pakistan, Egypt, Lebanon and the UAE, including US $150 million investment round by OLX valuing EMPG at US $1 billion post-transaction

INVESTMENTS

Startup Sector / Industry Location Amount & Round Investors
Pure Harvest Smart Farms Agriculture UAE $20.6M, Series B Wafra International Investment Company
SARY Ecommerce KSA $6.6M, Series A led by Raed Ventures, from MSA Capital and Derayah Ventures
360Vuz Entertainment UAE $5.8M, Series A led by Shorooq Partners from KBW Ventures, Vision Ventures et al
Mamo Pay Finance UAE $1.5M, undisclosed led by Global Founders, from Global Ventures, 500 Startups et al
Hotel Data Cloud Hospitality UAE $350K, Seed Undisclosed
Baims Education Kuwait Undisclosed, Seed led by Al-Wazzan Education, from angel investors
Eventtus Events Egypt Undisclosed amount & round led by Algebra Ventures​, ​Hala Ventures​ and ​DAAL VC
HubPay Finance UAE Undisclosed, Seed led by Signal Peak Ventures (US), from Falcon Network
Mumm F&B Egypt Undisclosed, Pre-Series A Alex Angels
TAKER F&B KSA Undisclosed, Seed led by 500 Startups, from Saudi Venture Capital and angels
YouGotaGift Consumer Services UAE Undisclosed amount & round Faith Capital

 

INVESTMENT HIGHLIGHTS

Magnitt’s Q1 2020 Investment Report

Magnitt Q1 2020 Report, investment report

  • Top 5 funding rounds in Q1 account of 61% of all MENA startup funding in the quarter.
  • While there was an increase from Q1 2019 to Q1 2020 in terms of funding amount, 4 out of 5 funding rounds were all announced pre-Covid-19 lockdown.
  • March saw a significant slowdown in number of deals, a trend that is expected to continue in the coming months as the ramifications of Covid-19 come into play.

VC NEWS

  • Phaze Ventures (Oman) invests in SpotLight, a French geoscience startup providing dynamic detection of subsurface movements
  • Global Ventures (UAE) closes its first fund of $50M earlier this year and has invested so far in 15 startups including Kitopi, HolidayMe, Mumzworld, Elmenus, Floranow
  • Newly established Egypt-focused fintech fund Disruptech invests in Khazna (mobile financial services) and Brimore (retail E2E platform)
  • Alexandria Angels announces launch of Alex Angels Fund, a $6.3 million (EGP 100 million) fund to invest in Egyptian startups

STARTUPS

  • Anghami commits $3 million worth of free audio ads for small businesses on its music stream service
  • Careem launches grocery delivery service in Dubai called “Careem Shops”
  • Luxury fashion ecommerce startup The Modist shuts down after raising more than $15 million in venture capital
  • Facebook launches video chat feature Messenger Rooms to take on Houseparty and Zoom. The feature is being tested in selected countries and to be rolled out globally in the coming weeks.
  • Tradeling, a UAE-based supply chain B2B marketplace launches its Beta version. The venture is backed by DAFZA and endorsed by Dubai Free Zone Council
  • Subscription-based office lunch delivery startup Dailymealz (KSA) partners with retail giant Panda to launch grocery delivery service
  • Talabat and Kitopi join forces to distribute 1,000 meals daily, over lunch and dinner, delivered to communities that need it most, in close collaboration with Dubai Health Authority and Dubai Police
  • TransferWise (UK), opens office at ADGM, licensed as a Money Services Provider, and launches its low-cost cross-border online money transfer service in UAE
  • Cairo-born, Dubai-headquartered healthtech startup Vezeeta launches its doctor-booking platform in Kenya

 

ACCELERATORS / INCUBATORS

  • Krypto Labs together with UAE Space Agency to kick off its Global Space Industry Accelerator initiative with webinars and virtual roadshows on space entrepreneurship
  • In5 partners with Jupiter Business Mentors (JBM) to provide business owners access to free mentorship sessions and 10% discounts to JBM’s services
  • startAD selects 3 winners for its Youth Entrepreneurship Program. Winning projects include SolarGridX (solar power tech), Finllect (financial literacy app), BestBy (F&B ecommerce)
  • Startupbootcamp FinTech Dubai’s 2nd cohort completed its accelerator program featuring 10 startups signing over 40 PoCs

COWORKING

  • Hub71 announces 15 new joiners to its Hub71 Incentive Program, prioritizing startups in Edtech and HealthTech fields including Aumet (US), Altibbi (Jordan) and Kinderly (UK)
  • US data residency hosting platform, InCountry,  to set up its Middle East Headquarters at Hub71, and set up in ADGM as regional subsidiary.

ARTICLES WORTH READING

 

COVID-19 | STARTUP RESOURCES

A curated list of essential articles and updates on the Corona pandemic, its impact on the regional ecosystem and approaches on how founders and startups can navigate the current landscape

Magnitt

Gulf News:  

MENAbytes:  

Deloitte:

On support initiatives or stimulus packages: