MENA Startup Ecosystem News | September 2022

Here is this month’s compilation of startup news. This report is also available in a downloadable PDF version via this link: MENA Startup Ecosystem News – 2022 Sep

TOP NEWS

• MEAPT aggregated 84% of capital accumulated in FY2021. But Q3 2022 results are lowest in terms of deal number and amount: According to Magnitt’s data, although the MEAPT region crossed the $6 billion funding mark, 57% of it was aggregated in Q1. While Q2’s April stats showed 75% decline from March. Q3 followed a similar downward trend with the global economic downturn taking its toll. This said, Fintech remained the most transacted and top-funded industry

INVESTMENTS

VENTURE CAPITAL

• SVC invests in Propeller Ventures fund: Government VC Saudi Venture Capital (SVC) invested in Jordan’s Propeller Ventures fund focused on early-stage SaaS, enterprise software, and cloud infrastructure startups. The agreement is part of Propeller’s growth plan into the Saudi market as a strategic investment destination
• Endure Capital closes first round of $50 million fund: Egypt-based Endure Capital has completed the first close of its new $50 million fund to invest in early-stage startups across Africa. The limited partners who have invested in the fund include British International Investment (BII), and Egypt’s Micro, Small, and Medium Enterprise Development Agency (MSMEDA)
• Al Waha Fund of Funds and UK’s Hambro Perks launch venture studio: The fintech venture studio, HP Spring Studios, will be based in Manama, Bahrain  and will both co-found and invest directly in next-generation fintech startups. An in-house team covering the full capability spectrum across product, engineering, and operations will help accelerate startups towards product/market fit
• UAE’s Further Ventures launches $200M fund: The fund is backed by Abu-Dhabi based holding company ADQ and is dedicated to co-creating ventures focused on digital assets, fintech and supply chain. It will provide  participating founders with Seed and follow-on capital, talent sourcing, regulatory and legal help, product design, market entry and business development support
• Morocco-based BMCE Capital Investment launches $4.5 million VC fund: The fund is dedicated to financing Moroccan startups at the Seed stage. BMCE VC is also expected to connect its portfolio startups to an extensive network of Moroccan and global investors. They are set to raise the money from renowned Moroccan investors and key players to meet the targeted capital.

STARTUPS

• Jordan’s Sowt acquires UAE’s Finyal Media: Digital audio media company Sowt acquired the Arabic podcast producer Finyal Media to support the former’s push for audience growth, commercial opportunities and creative content. The deal was financed by  Media Development Investment Fund (MDIF) and Sowt Media.
• Lyve Global acquires drop ship provider Shopini: B2B logistics SaaS platform Lyve Global has acquired Shopini World, a cross-border e-commerce logistics and solutions provider. The combination of Shopini’s first and mid-mile services with Lyve’s solutions completes the entire logistics cycle, enhancing execution capabilities and customer reach for Lyve’s e-commerce clients
• Egypt’s ECC Group acquires Source Beauty: Egyptian Company For Cosmetics (ECC), a beauty and personal care manufacturer, acquired Source Beauty, an  Egyptian-based one-stop shop beauty platform. The acquisition will offer an enhanced service to Source Beauty’s clients, including new product innovation, and manufacturing know-how among others
• UAE’s Tabby expands to Egypt: UAE-based fintech Tabby expands to Egypt, partnering with several retailers to offer shoppers the chance to pay for their purchases in instalments. Partnered brands include Lacoste,  L’azurde, Faces, In Your Shoe, KAI Collections, Ariika to name a few.
• Shezlong (Egypt) expands to South Africa: Egyptian startup Shezlong, the first and largest psychotherapy platform in the MENA, announced the launch of its business in South Africa called “Upright”. The expansion would help reach underserved population by the health system. The move came a couple of years after they raised a funding round from Singapore-based AAIC, which is focused on the healthcare sector in Africa
• Tabby partners with Paymob to offer BNPL: Tabby, the Middle East’s leading payments and shopping app, and Paymob, the leading omnichannel payments facilitator in MENAP, announce their partnership to fuel growth for retailers in Egypt. Tabby’s BNPL payment solution will be available to over 120,000 Paymob merchants, where they can grow their average order value, conversion rate and overall performance

STARTUP PROGRAMS

• Flat6Labs, SANAD launch agritech accelerator in Egypt: The program will assist 10 to 12 startups per cycle on business models, product development, customer relationships, marketing plans, & financial management, making the beginning of Flat6Labs’ mission to support emerging businesses in agri-food, food security, and rural development sectors
• Unifonic (KSA) and The Space launches accelerator program UnifonicX: The program runs for 3-4 months, targeting Saudi entrepreneurs & founders in the cloud communications and SaaS industries The accelerator is one of three pillars in wider UnifonicX initiative, which includes the UnifonicX Venture Builder and UnifonicX Academy.
• Dtec’s SANDBOX for early-stage startups puts Founders at its core: Dtec’s landmark 12-month startup program offers founders 200+ hours of workshops, 100+ hours 1:1 with expert practitioners, USD $950,000+ in-kind credits from partners, access to award-winning office space, Equity Warrant of USD $50,000, business licensing support, and much more. If you are an early-stage tech entrepreneur in Dubai, seeking to test, grow and scale, APPLY TODAY

COWORKING

• Twofour54 launches The Community Hub: Located on Yas Island, it is the first purpose-built hub for media, entertainment & gaming in the region. It aims to bring together gamers, aspiring filmmakers, storytellers, animators, freelancers, startups and SME content creators. The hub features an array of spaces, from private meeting rooms and lounges to a screening room and brainstorming areas. It will also connect members with twofour54’s established partners

WORTH THE READ

Wamda

• Can the Mena region be a leader in inclusive capital?
• What are the repercussions of Capiter’s downfall?
• Behind the scenes of the POSRocket acquisition
• An essential guide to ESOPs

Magnitt

• Investor Landscape: The Industries Taking Centre Stage
• Deal Dynamics in the Emerging Venture Markets 2022 YTD