Welcome to our daily funding update for MENA startups. This brief will cover the latest funding news and investments from the region’s vibrant startup ecosystem.
News Of The Day: 11 Funding and Investment Update
1. Online Flower Marketplace Floranow Announces Full Acquisition of Bloomax, a Wholesale Flower Distributor in Saudi Arabia, Allowing It to Expand Its Footprint Within 9 Cities in the Kingdom.
Floranow, the Middle East and North Africa’s online flower marketplace has announced the complete acquisition of Bloomax, a wholesale flower distributor in Saudi Arabia. Floranow’s business model, established in 2016, combines a digital platform and a logistics organiser to transport products twice as fast as traditional channels within pioneering refrigerated transportation solutions. According to the company’s statement, it has processed more than 150,000 orders, has more than 1,100 customers, and employs more than 100 people. The acquisition expands Floranow’s existing operating footprint in the Kingdom and provides it with a direct presence in 9 Saudi cities, where Floranow’s current aim is to bring about a technological revolution in the flower industry, as they use cutting-edge technology and logistics to handle the supply chain from farm to florist, covering all stages of shipping, customs clearance, quality control, delivery, and linking farmers with importers in over 20 markets.
2. Egyptian Teleradiology Startup Rology Acquires Saudi Arabia’s Arkan With the Aim of Revolutionising Teleradiology and Improving Patient Care Services in KSA.
Rology, an Egyptian teleradiology startup, recently acquired Saudi Arabia’s Arkan United Company. According to Rology, the acquisition would provide Rology and its AI-powered platform a footing in the Saudi market, which needs more high-quality radiology services in the private sector. Rology’s superior network and technology and Arkan’s expertise will revolutionise teleradiology and improve patient care. It should be noted that Rology has raised funding capital over the last three years, which had $860K in a pre-seed fundraising round in 2020 and an undisclosed amount in a seed round led by Egypt Ventures in April.
3. Saudi FinTech EdfaPay Raises $3.2 Million Seed Funding Led by Sanabil 500 MENA to Expand Globally by Providing Its Services and Technologies in Pakistan and South America.
EdfaPay, a Saudi fintech company, announced a US$3.2 million seed funding round led by Sanabil 500 MENA Seed Accelerator, with participation from Al-Dowayan Investment Group, Etemad Investment Company, Basma Investment Company, and other Saudi and international investors. EdfaPay was founded in 2022 to provide various financial solutions, including electronic payments and mobile payment services for businesses and stores through the use of Near Field Communication (NFC) technologies, which allow customers to convert their phones into points of sale and accept payments without the complexity or need for traditional POS devices. EdfaPay said it has begun delivering its services in the Kingdom of Saudi Arabia, starting its worldwide expansion strategy by offering its services in Pakistan and South America. It intends to support its expansion and technological development through its recent funding round.
4. Saudi Integrative Health Acquires Nala App for Health Consultation Services to Enhance Its Digital Services in Medical Care.
Integrative Health, the Kingdom’s pioneering and patient-centric network of digital-first urgent care centres, announced the acquisition of the app (Nala) for health consulting services in the KSA, but did not disclose the monetary worth of the transaction. According to the acquisition announcement, Nala was founded in 2018 and serves over 200,000 individuals as an AI-based personal assistant to answer patients’ questions, help them make appointments with expert doctors, and provide recommendations and guidance to users. Integrative Health intends to improve its digital services through the acquisition of Nala, particularly as it provides home medical care services and digital consultations in addition to urgent care services at specialised centres.
5. Saudi Women in Tech Program Graduates the First Batch of 8 Incubated Startups Led by Women and Supports the Top Three Startups With Prizes of $50,000.
Standard Chartered Banking Group (SBG) and Falak Investment Hub have graduated the first cohort of the Women in Tech Program in Saudi Arabia, which lasted 8 weeks and included 8 women-led firms chosen at the programme’s outset by an independent jury. On the last day of the programme, startups showcased their platforms, with the top three companies getting $50,000 in cash rewards; Sahm won $25,000 as first place, Nqoodlet $15,000, and Chefaa $10,000. Mr Saud bin Khaled Al-Sabhan, Deputy Governor of the Small and Medium Enterprises General Authority (Monsha’at), spoke at the closing ceremony about the importance of the role that Monsha’at provides to women entrepreneurs and enhancing their entrepreneurial skills, which contributed to increasing the number of women-owned enterprises in the Kingdom to more than 476,000 by up to 40%, reflecting the wise government’s interest in empowering women and their participation in the business sector.
6. UNDP Libya Launches Deraya Entrepreneurship Initiative With the Aim of Building a Dynamic Ecosystem of Innovative Young Entrepreneurs and Libyan Start-Ups.
The United Nations Development Programme (UNDP) has established the Deraya Entrepreneurship Initiative in Libya, with the goal of creating a dynamic ecosystem of innovative young entrepreneurs and Libyan start-ups. The initiative aims to address some of the challenges that Libyan entrepreneurs face, such as access to markets and financial resources, as well as the follow-up of administrative systems and procedures, by opening its doors to innovative entrepreneurs and future young entrepreneurs between the ages of 18 and 35, provided that participants are given the opportunity to interact with experienced entrepreneurs from Libya, Egypt, and Tunisia as role models. It’s worth to note that the initiative is funded by the African Development Bank and the European Union in cooperation with Flat6Labs and Tatweer Research.
7. Egypt’s Leading FinTech and Banking Fawry Announces Its Strategic Partnership With Global Cloud Communications Platform Infobip to Provide a Seamless and More Comprehensive Payment Experience to Its Customers Through Meta Channels.
Fawry, Egypt’s premier fintech and banking startup, has established a strategic alliance with Infobip, a global cloud communications platform. This collaboration will allow Fawry to accept payments via various META channels such as WhatsApp, Facebook Messenger, SMS, and chatbot solutions, resulting in a more efficient and effective experience, enhanced e-payment acceptance services, and a seamless and more comprehensive payment experience for Fawry customers. Through these productive collaborations, Fawry hopes to expand its position in the region and take the lead in Egypt’s digital transformation process in accordance with Egypt’s Vision 2030.
8. Saudi Venture Capital Company (SVC) invests $7.5 million in the Endeavor Catalyst IV Fund to stimulate and sustain funding for early- and advanced startups and SMEs.
The Saudi Venture Capital Company (SVC), a subsidiary of the Small and Medium Enterprises Bank, a subsidiary of the National Development Fund (NDF), has invested $7.5 million in the Endeavor Catalyst IV Fund, which is managed by Endeavor Catalyst, Endeavor Global’s investment arm that focuses on investing in early- and advanced-stage startups. This investment is the result of the SME Bank’s support in increasing investment allocations, bringing the total volume of SVC’s investments to approximately $1.5 billion, as SVC aims to stimulate and sustain the financing of startups and small and medium enterprises from the pre-establishment stage to the pre-IPO by investing $1.6 million. The number of funds in which SVC has invested in 38 investment funds, and the number of startups and SMEs invested reached 674 companies through 1,257 deals.
9. The UAE’s Tabby payment and shopping app closes a new round and upsizes debt facility to $350 million, enhancing the company’s ability to further serve customers, retailers and purchases.
Tabby, the UAE’s payments and shopping app in the Middle East and North Africa has raised $350 million in a new funding round led by Partners for Growth, Atalaya Capital Management, and CoVenture. Tabby, founded in 2019 by Hossam Al Arab, has over 4 million active clients, over 15,000 partners, 20,000 monthly transfers, and over 280,000 Tabby cards issued in the UAE. The additional funding strengthens the company’s ability to serve consumers, retailers, and purchases, and it reflects the expansion of the company’s credit facilities, which offer its clients the most convenient payment ways.
10. Moroccan home maintenance company PrestaFreedom raises $1.1 million from Azur Innovation Fund to develop logistics and technology services and support its growth and geographical expansion in African markets.
Moroccan startup PrestaFreedom raised $1.1 million from Azur Innovation during a funding round, and the startup, founded in 2020 by Majid bin Salmane, offers a range of home maintenance services on a monthly or weekly subscription basis to around 1,000 customers, according to its statements. PrestaFreedom plans to use the new funding to develop logistics and technology to support its growth while accelerating plans to expand geographically in some African markets starting next year.
11. Moroccan health-tech startup DataPathology raises $1 million from the Azur Innovation Fund to expand its network of laboratories in Morocco and Africa and improve its data processing capabilities on its platform.
Moroccan health-tech startup DataPathology has raised $1 million from Azur Innovation during a funding round. Founded in 2020 by Mohammed Al Khanoussi and Hisham Al Attar, the company provides rapid and accurate diagnostics of patients using artificial intelligence technologies. The company will use the pooled funding to expand its network of laboratories in Morocco and Africa and improve its capabilities to increase the volume of data processed in its platform. The startup had secured a $196,000 investment from Witamax during a funding round a year and a half ago.
That’s all for today’s funding update. Stay tuned for more updates on the MENA startup scene, and remember to subscribe to our newsletter or browse our archives for more news and analysis.
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Last Updated on June 6, 2023 by Safiya K
