GCC Startup Ecosystem News | January 2021

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 startupsAccording 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
  • FlexxPaya 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 CapitalSaudi 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

Entrepreneur

NFX