GCC Startup Ecosystem News | August 2021

This report is also available in a downloadable PDF version via this link: GCC Startup Ecosystem News Roundup – 2021 August

HEADLINE

• Saudi Arabia LAUNCH(ed) $1.2bn worth of tech initiatives to improve digital skills of 100,000 Saudi youngsters by 2030: During KSA’s event called “Launch”, several initiatives were announced including eWTP Arabia Capital’s $400 million Chinese-Saudi capital fund to support tech startups in the Kingdom. Multinational corporations including Amazon, IBM, Cisco, Oracle, Informa, and Microsoft, also announced their partnership with the kingdom to create digital capability centers and innovation hubs for tech startups

INVESTMENTS

STARTUPS

• Riyadh and UAE-based E-commerce enabler, Opontia acquired UAE-based direct-to-consumer (D2C) medical equipment and therapeutic product provider, Novimed, following the former’s latest Seed round of $20M. The acquisition aims to improve Novimed’s inventory operations, increase marketing spend and enhance product placement.
• Music streaming major Anghami is set to launch entertainment venues in Dubai and Riyadh ahead of its listing on Nasdaq New York. The company will launch Anghami Labs, a hybrid of digital and traditional entertainment, enabling music creators to experiment by co-creating music to be performed at the venue. The music will be made available exclusively on Anghami platform.
• Dubai Chamber of Commerce and Industry and eBay partnered up to launch eBay for Business – UAE Program to help Chamber members and UAE businesses expand globally and boost online sales worldwide by utilizing eBay.com. With the program, UAE companies will receive practical training and tailor-made support to start a new store and scale their businesses on eBay.com
• Former Head of Careem Pay launches SimpliFi, a Cards as a Service platform for MENA and Pakistan. Headquartered in Dubai, SimpliFi enables any business to  issue virtual or physical cards, for different use cases almost instantly and manage the entire program from SimpliFi’s online portal.
• UAE’s latest unicorn Swvl, agreed to buy Spain-based Shotl, an Uber-like service for bus and van operators that caters to municipalities, corporations and educational institutions serving  22 cities across 10 countries, including Brazil and Japan. Shotl will serve as Swvl’s European hub to double the latter’s footprint.
• Egyptian ecommerce logistics startup Bosta appointed Fetchr’s co-founder Omar Yaghmour as its Chief Growth Officer. Omar co-founded Fetchr about nine years ago and served as its Chief Operating Officer until April 2020. Prior to Fetchr, he was an executive manager at MarkaVIP, one of the first ecommerce platforms in the region
• Egypt’s state-run El Nasr Automotive Manufacturing Company has started to test drive a new electric vehicle (EV) model, called “E70”, in cooperation with the international ride-hailing company Uber, in preparation for manufacturing the first Egyptian EV. Production is scheduled to start by second half of H2 2022.
• Lebanese gameplay streaming platform Rawa.tv gets acquired by US-based gaming content and clip-sharing platform Medal.tv. The acquisition will open new monetization avenues and new ways to engage Medal.tv’s community. Rawa.tv raised a total of $800+ since launch.
• Chari, a Morocco-based B2B Marketplace acquires mobile credit book application Karny.ma to offer its customers a simple and effective solution to debt financing. The acquisition follows the recent Pre-Seed fundraise by Chari, led by Plug and Play Ventures and Y Combinator.

VC NEWS

• Telecom operator Zain Group launched Zain Ventures and the closing of investments in USA-based Pipe (Fintech) and UAE’s Swvl (transportation). The launch of Zain Ventures is part of the telecom operator’s ‘4Sight’ strategy to become a full-fledged digital services company.
• Innovative Startups and SMEs Fund (ISSF, Jordan) announced its $1M investment in UAE-based VC Fund Access Bridge Ventures (ABV) in support of Jordanian early-stage startups. ABV announced the first close of its $25M back in January 2021.

ACCELERATORS / INCUBATORS

• Hotel management company, Aleph Hospitality (Dubai) opens applications for their Hotel Innovation Lab for startups in Artificial intelligence (AI), hotel guest & employee guest experience, sustainability & renewable energy, food & beverage and/or community service(s). Onboarded startups will receive office space, business support and advisory, product testing facilities and investment opportunities.
• Arab Bank launched the AB Accelerator in Egypt, a fintech-focused corporate acceleration programme. Eligible startups will receive up to $500,000 in funding, along with banking and commercial collaboration for product validation and market access
• US-based Village Capital launched an investment readiness accelerator program for impact startups from the Middle East, North Africa and Turkey. Supported by International Finance Corporation (IFC), will host two cohorts consisting of 21 companies. The top two companies from each cohort will be awarded $20,000 in equity investment
• Dubai-based luxury retailer Chalhoub Group has launched the flagship edition of its fashion design incubator Fashion Lab in Saudi Arabia. The Fashion lab will culminate with a Demo Day in December, with Saudi brands to receive funding of $15,000 with potential for equity partnership
• The Mohammed Bin Rashid Innovation Fund (MBRIF) accepts 24 startups into its accelerator program which begins September. This is the largest cohort they have to date, comprising of 13 UAE-based and 11 internationally located startups

UPCOMING EVENTS

• Deadline to apply: Aleph Hospitality Innovation Lab – 02 Sep
• Techne Summit Hybrid event: 02-04 Oct
• Gitex 2021: 17-21 Oct, Dubai
• Dubai Expo 2020: 20 Oct 2021-10 Apr 2022, Dubai

ARTICLES WORTH READING

Magnitt

• Startup Soprano: Saudi reaches new heights in H1 2021
• H1 2021: Funding the Rise of FinTech
• At the half-way mark: Fintech fights the one-startup trend

Wamda

• Lessons for Mena: The rise of bus-sharing in Bangladesh
• The need for edtech in higher education
• Report: What is the state of mental health and wellbeing of entrepreneurs in Mena

MENABytes

• A primer on SPACs and PIPEs: How they work
• The winners of Swvl’s $1.5 billion SPAC merger