GCC Startup Ecosystem News | May 2021

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

HEADLINE

• MENA VC investments kickstart Q2 with $175M funds raised in April: Venture activity in Q2 gets a strong start as 44 startups across the Middle East and North Africa (Mena) raised more than $175 million in April, up $5 million from March.
• BNPL startups making news in Q2: Buy Now Pay Later startup, Spotii, gets acquired by Australia’s Zip for an enterprise value of $20 million. This comes in the heels of KSA-based BNPL startup Tamara raising $110M Series A last month

INVESTMENTS

INVESTMENTS HIGHLIGHTS

Mena startups raised $175 million in April 2021 (Source: Wamda.com)

• For the first time, Saudi Arabia topped the list in terms of number and value of startup investments. This was led primarily by Tamara’s $110 million Series A round, the buy now pay later fintech company broke regional records for the largest Series A round ever raised by a Mena startup
• Other notable funding rounds in Saudi Arabia came from Quantum and Gazal, which both raised seed rounds in excess of $2 million, highlighting larger ticket sizes from investors in the country
• Egypt also performed well, with 10 of its startups raising $16.4 million, while Kuwait’s $10 million came from just one startup, Cofe, an on-demand coffee ordering platform.
• Besides fintech, foodtech and e-commerce were the most active sectors, reflecting ongoing trends induced by the pandemic.
• The bulk of investments in April were focused on seed rounds, while Falak’s second cohort pushed up accelerator funding.

STARTUPS

• UAE-based buy now pay later platform Spotii gets acquired by Sydney-headquartered fintech startup Zip for an enterprise value of $20 million. The money will be paid in Zip’s ordinary shares, cash, or a combination of both
• Crown Prince of Dubai launches Dubai Next – a digital crowdfunding initiative to support entrepreneurs and startups
• After undergoing investigation for money laundering since July last year, Boutiqaat, the leading Kuwait beauty ecommerce platform has been acquitted in the money laundering case
• UAE Ministry of Economy announced the amended Commercial Companies Law will come into effect on June 1st, 2021, enabling foreign investors and entrepreneurs to establish and fully own onshore companies. Current and previously licensed companies can also amend their statuses to the new commercial law amendments.
• Global online payments company Stripe announced its official launch in UAE in April, via partnership with Dubai-based Network International. This follows Stripe’s latest funding round valuing it at $95B. The company is the 2nd large online payments player to expand in the region, following Ayden (Amsterdam)

VC NEWS

• UAE VC Mindshift Capital invests in US-base, female-led startup FORTË, a proprietary solution digitizing fitness offered at gyms and boutique studios. This marks the 9th investment for the VC in its inaugural fund.
• The Innovative Startups and SMEs Fund (ISSF) and Dutch Good Growth Fund (DGGF)  to anchor the launch of Amam Ventures, Jordan’s first SME gender lens fund with a target of $30M to offer quasi-equity financing instruments to women-led SMEs
• Regional Seed Program and Fund, Flat6Labs announced the second close of its Egypt fund of $13.2M to support early-stage Egyptian startups.

ACCELERATORS / INCUBATORS

• The Ministry of Communications and Information Technology partners with Raed Ventures Investment Fund in announcing the opening of regsitrations for the Riyadh Techstars Accelerator program. Set to take place in KSA for four months, the program will adopt 10 startups to receive funding of $120,000

EVENTS UPCOMING

• 02 June | Deadline for submission: Leaders in Fintech Awards
• 10 June | Leaders in Fintech Awards, Sofitel Dubai
• 15 June | Digital Marketing Conference 2021, The Meydan Hotel Dubai
• 24 June |  AMA with Dtec Ventures, Online

ARTICLES WORTH READING

Magnitt

• Hungry to grow: MENA’s top 3 F&B funding rounds from Q1 2021
• Startups post the pandemic pushback: Q1 2021 VC review of MENA, Pakistan, and Turkey
• Future of Fintech in MENA: Making its Mark on the Global Front
• Meet MENA’s top 5 Delivery & Logistics investors during Q1 2021

Wamda

• What’s next for Saudi Arabia’s booming VC sector?

Menabytes

• What does the 100 percent foreign ownership law mean for startup ecosystem of UAE