MENA Startup Ecosystem News | February 2022

This report is also available in a downloadable PDF version via this link: MENA Startup Ecosystem News – 2022 February

TOP NEWS

Anghami officially lists on US NASDAQ: UAE-headquartered, music streaming platform Anghami has completed its business combination with Vistas Media Acquisition Company and has listed its shares on the NASDAQ under the tickers  “ANGH” and “ANGHW”. Founded in 2012 in Lebanon by Eddy Maroun and Elie Habib, Anghami has grown to become the Middle East’s largest music streaming platform. The listing marks the first time that a regional tech startup has listed on the NASDAQ. After it began trading on the NASDAQ on 4 February 2022, Anghami saw its shares skyrocket 80 per cent raising its market capitalisation to over $500 million, before settling to $250 million.

INVESTMENTS

STARTUPS

• COFE App acquires UAE’s Sippy Beans & signs up partnership with ADIO: Leading online coffee marketplace COFE App acquires specialty coffee e-commerce platform Sippy Beans (Sippy Ltd) as the former continues to expand its presence in the region. They also partnered with ADIO as part of the latter’s AED2bn program for innovative companies. This will see COFE App relocate its HQ to Abu Dhabi, among other incentives.
• Wego (UAE) set to acquire Cleartrip by H2 2022: UAE-based online travel marketplace Wego is set to acquire Cleartrip’s Middle East business in the second half of 2022 for an undisclosed amount. The acquisition will enable Wego to enhance its presence in the Mena region by tapping into Cleartrip’s digital infrastructure and resources, and deliver a wider range of services and products to consumers
• Letswork (UAE) Acquires Krow in Portugal: PropTech and coworking spaces platform Letswork, acquires Portuguese counterpart Krow as part of its market expansion. As a part of the deal, Krow’s founders, Paulo Palha and Joana Balaguer, will join Letswork as Country Managers for Spain and Portugal respectively
• SWVL raises additional $21.5M in PIPE funding: The amount was raised as part of mobility solutions provider SWVL’s proposed business combination with Queen’s Gambit. The aggregate amount of expected PIPE proceeds to $121.5 million and will be used to fuel the company’s growth strategy.
• Egypt-based PropTech Milango acquires Circle: Cairo-based community management software provider Milango, backed by A15, has successfully acquired its local counterpart Circle, a 500 Startups-backed company, The acquisition grows Milango’s contracted user base to well over 100,000 residential units and the startup aims to leverage the acquisition to accelerate its growth in the community management category
• Egypt ratifies its Fintech Act: The Fintech Act regulates robo-advisory, nano-finance, insurtech, and (tech-enabled) consumer finance, among other sectors. The law makes the Financial Regulatory Authority (FRA) the only entity in charge of licensing and regulating fintech companies. It also sets transparency and governance standards and protects consumer rights
• Agritech Red Sea Farms (KSA) to expand to US: The move follows the investment into the company which included US investors AppHarvest and Bonaventure Capital in 2021. The University of Arizona College of Agriculture and Life Sciences’ Controlled Environment Agriculture Center (UA-CEAC) will evaluate the technology and its resource-saving potential to produce crops in resource-limited environments.

VENTURE CAPITAL

• Egypt launches $50 million VC programme to support tech startups: In collaboration with the World Bank, the VC Program will finance new and existing investment funds that support entrepreneurship projects. It aims to encourage Egypt’s promising youth to enter the free labour market and implement modern, advanced projects that can compete on a global level
• Khwarizmi Ventures closes current fund of $70 million: Saudi Arabia-based Khwarizmi Ventures has completed the second closing of its current fund with a value of $70 million to fuel early-stage startups across the MENAP region. The fund had its first close back in October 2021 at $63M
• Saudi Aramco launches $1 billion Prosperity7 Ventures fund: The global VC fund will invest in early-stage enterprises in sectors including blockchain, financial and industrial technologies, healthcare, and education. The fund will support building long-lasting partnerships, providing quality mentorship, and access to a network of leading companies, venture capital firms, and market experts worldwide.

STARTUP PROGRAMS

• Dtec’s SANDBOX kicks off its first cohort: Dtec’s landmark startup program SANDBOX kicks off the month with its first cohort of 12 high potential startups and first two weeks of highly intensive curriculum consisting of workshops spanning the 6 foundational pillars of the program, 1:1 mentoring, leading up to their first ecosystem event presence at the STEP Conference
• Dammam Valley (KSA) launches BioTech Startups Programme: The program is designed to stimulate the establishment of startups in biotechnology and foster communication with existing startups from around the world. It will provide qualified projects with grants amounting to $500,000 alongside training, mentorship and investment opportunities.
• In5 launches investor space in DIC: The dedicated space will accommodate angel investors, VCs and institutional investors at in5 Tech center in Dubai Internet City. It aims to be a one-stop shop for investors entering the UAE market, giving them the chance to explore the local startup ecosystem, and also host events, workshops and coaching sessions to nurture the UAE’s future investment landscape.

WORTH THE READ

Magnitt

• MENA: Top Investors in FinTech 2021
• Mapping the Middle East: BNPL and other FinTech trends in 2021
• E-commerce 2021: Top 3 Series A Rounds in MENA

Wamda

• The Power Law — how venture capital ate the stock market
• 2021 Year in review – Investments in Mena
• Anghami: Success built on localisation

Robb Report:

• Everything You Wanted to Know About the Metaverse—But Were Too Afraid to Ask