2020 marks a record $1 Billion dollars of investment in startups, All these and more in our first GCC Startup Ecosystem News roundup for 2021.
This report is also available in a downloadable PDF version via this link: GCC Startup Ecosystem News Roundup – 2021-01 V1
HEADLINE
MENA region in 2020 saw a record of $1 Billion dollars of investment in startups According to Magnitt’s report, MENA venture capital funding crossed the $1BN threshold in 2020 for the first time, 13% up from 2019. Total deal count was down by 13% to 496 transactions, with later stage rounds trending up
INVESTMENTS
Startup |
Sector / Industry |
Location |
Amount & Round |
Investors |
Rain |
Finance |
Bahrain |
$6M, Series A |
led by Middle East Venture Partners (MEVP) |
Tamara |
Finance |
KSA |
$6M, Seed |
led by Impact46.and regional investors |
Zbooni |
Ecommerce |
UAE |
$5M, Series A |
led by an undisclosed London-based fund |
SpiderSilk |
Technology Solution |
UAE |
$2.25M, Series A |
Co-led by Global Ventures and STV, along international angel investors. |
Hakbah |
Finance |
KSA |
1.2M, Seed |
funded by a group of undisclosed investors |
Casabana |
Technology & AI |
Egypt |
$1M, Seed |
led by Disruptech. Other Fintech and angel investors |
Eljaro |
Finance |
KSA |
$850K, Seed |
Saudi Arabia-based angel investors |
NearPay |
Finance |
KSA |
$600K, Pre-Seed |
Musaab Hakami and a group of angel investors |
Odango |
Transportation |
Egypt |
$600K Seed |
Essa Al-Saleh, former CEO of the billion-dollar logistics company, Agility Logistics. |
Ynmo |
Education |
KSA |
$500K, Seed |
Wa’ed, the entrepreneurship arm of Aramco. |
Gocash |
Finance |
Jordan |
$300K, Pre-Seed |
Undisclosed |
Opio |
Fashion |
Egypt |
$300K, Seed |
Angel investors |
Cwallet |
Finance |
Qatar |
$220K, Pre-Seed |
Founders and MBK Holding |
Hi-Express |
Technology |
Iraq |
undisclosed amount, Seed |
Iraqi Angel Investors Network (IAIN) |
Ziina |
Finance |
UAE |
undisclosed amount, Seed |
OTF Jasoor Ventures, |
STARTUPS
- Dubai-based investment advisory platform Sarwa is expanding to KSA after receiving the fintech experimental permit from Saudi’s Capital Markets Authority (CMA). This comes a year after their $8.4 million funding round
- FlexxPay, a social impact technology company with offices in Europe and the GCC, has launched its new tele sales centre in Beirut, Lebanon, to support its strategic growth aspirations across the region.
- ArabyAds, an advertising and consumer intelligence platform based in the UAE, has announced the acquisition of Dmenta, a digital hub that specializes in influencer marketing
- Anghami, the region’s leading music streaming service is partnering with the Abu Dhabi Investment Office (ADIO), to establish its global headquarters and research and development (R&D) centre in Abu Dhabi. The partnership is part of ADIO’s recently announced $545M Innovation Program.
- The Abu Dhabi Investment Office (ADIO),launched a new AED2 billion worth program to support new and innovative ideas. The Innovation Program will target innovation-led companies and startups in the financial services, information and communications technology (ICT), health services and biopharma, and tourism sectors
- Leading mobile telecom innovator Zain’s fintech subsidiary Tamam Financing Company, receives official license from Saudi Central Bank (SAMA) to provide micro-financing services to consumers across the Kingdom.
INVESTMENT HIGHLIGHTS
2021 Emerging Venture Markets Report (Magnitt)
- 2020 saw a record of $1BN+ invested in MENA-based startups, a +13% increase year-over-year (YoY), thanks to a record H1 of venture funding. This capital, however, was deployed across fewer investments, with the total number of deals down by -13% YoY.
- 2020’s record funding was driven by H1 ‘20, with H2 ‘20 funding 58% lower than the first 6 months of the year
- Compared to H2 ‘19, total funding and number of deals in H1 ‘20 were down by 13% and by 35%, respectively
- The Top 5 deals in 2020 accounted for almost a third of total funding (31%). All 5 deals took place in H1 2020, further highlighting the impact of COVID-19 on growth stage ($10M+) deals in H2 202
- UAE startups accounted for 3 out of the top 5 largest investment deals in 2020
- In terms of sector funding in Growth stage, 29% went to Real Estate, 15% to F&B and 10% to E-Commerce
VC NEWS
- Access Bridge Ventures (ABV) a regionally-focused early-stage venture capital fund, has launched and made its first close. The fund, which will target a final commitment of $25M has garnered commitments from leading regional institutional investors, including Mubadala Capital, Saudi Venture Capital Company (SVC), Jada, and several prominent family offices. ABV will support high-growth tech startups from Saudi Arabia, UAE, Egypt, Pakistan, and the wider MENA region.
- Jada Fund of Funds has made an official commitment to Merak Technology Ventures Fund, which focuses on early-stage technology companies in the Kingdom of Saudi Arabia, and is managed by Merak Capital, a blind pool venture capital company.
- Saudi Arabia’s startup venture capital funding increased by 55% in 2020, reaching a record high of $152M in 2020 from investors despite a pandemic-driven economic downturn.
ACCELERATORS / INCUBATORS
-
Zain Group, a leading mobile telecom innovator has announced its 6th edition of the Zain Great Idea Investment and Acceleration Program, in partnership with Brilliant Lab. The program is focused on Pre-Seed and Seed stage startups and will accept applications from all tech startups across the GCC.
EVENTS UPCOMING
- 05 March | Deadline to apply: Blockchain Bootcamp & Hackathon – Training, Development & Funding for startups to build their platforms on blockchain technology. The event will take place 16 March to 06 April 2021
ARTICLES WORTH READING
Magnitt
- State of Startup Funding – 2021 Emerging Venture Markets Report
- Insights from the Emerging Venture Markets ecosystem
- Insights from the Emerging Venture Markets ecosystem: Reflecting on MAGNiTT’s 2021 EVM Report
- UAE startups top in funding, deals led by E-commerce in 2020
- 2020 Saudi Arabia Venture Capital Report
Entrepreneur
- The Year That Was: Mudassir Sheikha, Co-Founder And CEO, Careem
- Gearing Up For 2021: Visa’s Top Predictions For The Future Of Payments
NFX