The UAE witnessed a strong presence of venture capital investments in the second and third weeks of March, with the closure of four funding deals totalling $117.73 million.
First Deal
At the top of the list of these transactions, Abu Dhabi invested approximately $ 100 million in the shares of the Chinese company (ByteDance Ltd), the owner of the well-known platform (TikTok), via its artificial intelligence company (G42). With the entry of investments from Abu Dhabi Artificial Intelligence Company (G42), the valuation of (ByteDance Ltd) reached approximately $ 220 billion, less than the valuation set at $ 300 billion when the company implemented a stock repurchase program, according to Bloomberg.
The dip in its valuation reflects the uncertainty that has emerged since Washington signalled its willingness to ban TikTok, which US legislators have accused of posing a national security threat. The platform’s management is contemplating splitting from its Chinese parent company to address this issue.
(G42) is an artificial intelligence and cloud computing firm with operations ranging from energy to healthcare. (G42) offered data services and analysis during the Corona pandemic, as well as during Expo 2020 Dubai, through its subsidiaries.
Second Deal
Regarding the funding rounds, the coffee app Cofe secured a $15 million Series B round.
The venture capital fund Aramco led the round, with participation from Wa’ed Ventures, eWTP Arabi, KISP Ventures, Rasameel Investment Company, and Al Imtiaz Investment Group, the application’s former largest shareholder, bringing AL Imtiaz Group’s total investment in the application to $11 million with an additional $1 million invested in this round.
Founded in 2018, (Cofe) has become one of the most significant online coffee sales applications in the MENA region, where the coffee market is valued at $44 billion. According to the firm, the app is available across Kuwait, Saudi Arabia, the UAE, and Egypt. It plans to use the funding to develop its e-commerce offerings, strengthen its position in the regional market, and expand globally.
Third Deal
BAZAARA, a UAE-based fashion and accessories platform, has closed a pre-seed investment round of $230,000 led by accelerator Flat6Labs and some angel investors. The funds will be used to fund the company’s GCC expansion goals and the introduction of its integrated service in Saudi Arabia.
BAZAARA was founded in the UAE in 2021 by Alyssa Mariano. The app allows users to buy and sell used clothes and accessories simply and fully automatedly. The sold goods are collected, sent, and delivered, with their prices transferred directly to the user’s account within the application.
Fourth Deal
Dubai-based financial services platform Credable has raised $2.5 million in a seed round led by Ventures Platform and Acasia Ventures, with participation from several other investors.
Credable was founded in 2021 by Nadim Jumaa and formally launched its product in May 2022. The company provides a digital banking infrastructure for businesses, allowing them to offer banking products to their clients in emerging economies where it provides short-term lending products to businesses. More than 1.2 million people use the company’s products, with around 200,000 using its banking services.
Credable plans to use the funds to support its team, enhance its technology, increase growth and reach, and launch more products in Tanzania, Uganda, and Kenya. The company also plans to expand into new markets like Pakistan and Nigeria.
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Last Updated on August 30, 2023 by Safiya K
