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.
24th June 2023 Funding and Investment Update
1. Emirates Development Bank Supports AgriTech Financing in the UAE and Allocates a $27.3 Million Portfolio to Support the Vital Food Security Projects in the Country.
Emirates Development Bank (EDB) today unveiled its first-of-its-kind agri-technology financing program in the UAE and announced a US$27.3 million portfolio to support the financing of vital food security projects in the country. The new AgriTech Finance Program aims to support building a sustainable and prosperous national agricultural sector, enabling the UAE to become a global leader in agricultural innovation in line with the ambitious vision to enhance food security. The program’s objectives include empowering local farmers, farmers, and food suppliers by supporting modernization efforts and adopting advanced technologies, and providing agricultural technology financing offers to local farmers, producers, technology providers, equipment suppliers, and all relevant parties in the agricultural sector support system. The program provides a variety of financing solutions, including financing new and existing projects, capital expenditure, and working capital, where the value of medium-term financing or operating capital is up to $ 1.3 million with a maturity of up to 10 years and the program also provides grace periods of up to 2.5 years with high financing ceilings compared to the project value of up to 90%. Through these facilities, the Bank seeks to provide greater financial flexibility and support to borrowers in the agritech sector and accelerate their adoption of transformative technologies in line with government priorities.
2. Plug and Play Plans to Raise $100 Million to Invest in Saudi Tech Startups With the Help of the Public Investment Fund.
Silicon Valley-based global technology investment firm Plug and Play plans to raise $100 million to invest in Saudi tech startups. This plan is supported by the Public Investment Fund of the Kingdom’s sovereign wealth fund. Plug and Play are currently in talks with the Jada Fund, managed by the Saudi Wealth Fund, to help launch venture capital investments at the local level. The new fund is planned to launch by January, with Plug and Play contributing up to 10% of the total fund, with the rest of the funding raised from Saudi funds and family offices.
3. InstaShop UAE Announces the Acquisition of Grocart, a Wholesale Online Marketplace for Companies.
Emirati grocery service platform InstaShop has announced the acquisition of GroCart, a wholesale online marketplace for businesses. GroCart simplifies logistics for consumer goods retailers through an easy-to-use online platform. Having established 15,000 partnerships with more than 200 significant suppliers offering more than 5,000 products in the UAE, Grocart intends to expand its operations among companies in the MENA region, especially in countries with a large number of convenience stores such as Egypt. The acquisition will help InstaShop establish new partnerships and unveil innovative solutions for businesses, enabling them to thrive in the digital economy. It will allow Grocart to facilitate the completion of commodity trade transactions, consumerism, financing, and payments and take advantage of InstaShop’s customer base and strong financial position.
4. Egyptian Fashion E-Commerce Company Tfk Acquires Opio Fashion to Form the Fashion Kingdom Group.
Egyptian fashion e-commerce company TFK has announced the acquisition of Opio Fashion to form The Fashion Kingdom Group. The purchase will unite the two companies and expand the new group’s reach in the digital marketplace, providing diversity in fashion-related products and services. This strategic acquisition marks a milestone in TFK’s journey in establishing The Fashion Kingdom Group, which will play an essential role in creating brands that aim to revolutionise the fashion industry in the region. The Fashion Kingdom’s first mission will be to establish projects focused on developing, acquiring and growing diverse fashion brands on online platforms or retail stores in the local market and within the Middle East, one of the most growing and active markets.
5. Saudi Telfaz11 Acquires the Entire Company Shift, Which Specialises in Creative and Marketing Campaigns.
Telfaz11 announced its acquisition of Shift, a company specialising in creative and marketing campaigns, without disclosing the deal’s value. Telfaz11 said that the purchase came as a strategic step that provides new horizons for a creative entity that is compatible with its goals and united in its capabilities to raise the level of innovative services offered in the production of interactive content that represents the brands of partners in a narrative style to connect them with their target audience. The company’s statement added that the acquisition would support Shift’s expansion of its services by reaching a diverse customer base in various sectors.
6. Saudi Eyas Legal Consultants App Closes a Founding Round to Expand in the Digital Legal Services Sector.
The Saudi Eyas application, which works in the field of legal services, announced the closure of a foundational investment round without disclosing its value with the participation of Riyadh Group for angel investors and some investors, the Eyas application, which was founded in 2018 by Abdulrahman Al-Turki and Bader Al-Durai, provides digital legal solutions through a qualitative business model that connects individuals and lawyers in a fully automated manner, and the new funding will be used to expand in the digital legal services sector.
7. Boonfull Saudi Startup, Which Focuses on Enhancing the Experience of Motherhood, Is Reaping Its First Round of Investment to Develop Innovative Technologies and Solutions to Document and Enrich the Journey of Mothers.
Saudi startup Boonfull, which focuses on enhancing the maternity experience through its innovative products, has closed its first round of investment with the support of Al Hilal Club Investment Company and the Innovation and Entrepreneurship Center. Since its launch in 2022, Boonfull has focused on printing 5D models based on 3D sonar images to document and immortalize pregnancy memories and enrich the mothers’ journey during and after birth. The company is working to enhance this experience by providing products such as toys that enable mothers to record the pulse of foetuses to keep it permanently and providing various products, including clothes, mother and child supplies, and gifts. The pooled funding from the investment round will help develop Boonfull technologies to give mothers more innovative solutions to document and enrich their journey with motherhood, bring more expertise and skills to the team, and support expansion plans across the Kingdom.
8. Egyptian Islamic Fintech Platform Agel Raises Seed Funding to Accelerate Its Transformation Into a Non-Banking Financial Institution and Expand Its Reach to Major Cities in Egypt.
Egypt’s Islamic fintech digital platform Agel has closed an undisclosed preliminary funding round with the participation of Plus Venture Capital, Seedstars International Ventures, Flat6labs, SEEDRA Ventures, Banque Misr accelerator, and other angel investors. Founded in October 2021 by Abdel Rahman Saeed and Ahmed El-Sherbiny, Agel provides alternative financing options that are compatible with the provisions of Islamic Sharia and the social and cultural beliefs of the micro and small enterprises sector in Egypt, and the new financing will be used to accelerate the transition to a non-banking financial institution while developing products offered to customers and expanding its scope to major cities in Egypt.
9. Saudi Arabia’s Jada Fund Invests $500M in Bahrain’s Investcorp Fund to Support Promising Startups Looking to Go Public in the Coming Years.
Investcorp, a leading global alternative investment firm, has announced that Jada Fund of Funds, a subsidiary of the Public Investment Fund (PIF), has committed to invest in Bahrain’s Investorcorp fund, with an investment value of $500 million, which was launched last year, and aims to invest in a diversified portfolio of high-growth startups looking to go public in the next few years. Investcorp led $100 million in funding rounds in August for logistics and truck operator TruKKer and ICT specialist NourNet, part of a vision launched in late 2019 as a $1.07 billion fund that aims to invest in startups, venture capital funds and private equity funds.
10. Egyptian Trella Logistics Company Raises $3.5M in Funding From Avanz Capital Egypt to Develop Its Innovative Solutions in the Logistics Sector and Support Its Expansion Plan in Egypt.
Trella, an Egyptian logistics company, has received a $3.5M investment from Avanz Capital Egypt, a subsidiary of I Squared Capital. Founded in Egypt in 2018 by Ali El Atrash, Mohamed El Garem, Omar Hajres, and Pierre Saad, the Trella platform connects thousands of shipping representatives with institutions and brands to take over transporting goods and parcels and providing direct tracking. The platform’s services also include providing job opportunities for truck drivers and providing them with the necessary tools and technologies to develop their professionalism and increase their revenues. The company will use the new funding to design innovative solutions in the logistics and transportation sector and support its expansion plan in the Arab Republic of Egypt.
11. The Korean Ministry of SMEs and Startups and the Saudi SME Bank Signs an Agreement to Establish a $160M Mutual Fund to Support Startups in Both Countries.
The Ministry of SMEs and Startups of Korea stated Minister Lee Yong had signed an agreement with the Chairman of the Board of Directors of the Saudi SMEs Bank, Yousef bin Abdullah Al-Benyan, to establish a joint investment fund between the two countries worth $ 160 million. $150 million will be invested by the Saudi side and $10 million by the Korean side. This agreement comes as part of the follow-up procedures to the memorandum of action on investment cooperation between Korea and Saudi Arabia to support startups, which was signed on the sidelines of Saudi Crown Prince Mohammed bin Salman Al Saud’s visit to South Korea and his meeting with Korean President Yoon Sook-yeol in November last year. It should be noted that among the Saudi parties that will invest funds in the said fund are the Saudi Venture Capital Company, the Public Investment Fund, and other institutional investors.
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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