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 August 2023 Funding and Investment Update
1. UAE-Based Green Mobility Startup NWTN Invests $500 Million in China Evergrande Group’s Electric Vehicle Unit to Drive the UAE’s Electric Vehicle Market.
UAE’s green mobility startup NWTN has announced plans to invest $500 million in the electric vehicle unit of the troubled China Evergrande Group. Founded by Chinese businessman Alan Nan Wu, NWRN owns the electric vehicle assembly facility in Khalifa Industrial Zone in Abu Dhabi, part of Abu Dhabi Ports Group, and the green mobility company will receive a 27.50% stake in China Evergrande Group under the proposed transaction, to be approved and concluded in the fourth quarter of 2023 as expected. The company announced that it is strategically expanding its business in developing markets in the Middle East, North Africa and China. According to Arthur D Little, the UAE’s electric vehicle market is expected to grow at a compound annual growth rate of 30% between 2022 and 2028, while around 50% of all vehicles will be electric by 2050. This supports Dubai’s goal of having the number of electric vehicles on its roads by 2030 reach 42,000, as the UAE Ministry of Energy and Infrastructure is targeting.
2. Saudi Arabia Launches the Deep Tech Innovation Fund With a Budget of $ 200 Million to Invest in Local and International Companies Specialised in High-Tech and Advanced Technology.
The Kingdom of Saudi Arabia has announced the establishment of the Deep Tech Innovation Fund with an estimated budget of $ 200 million with the aim of early investment in local and international companies specializing in high-tech and advanced technology. The announcement of the fund is part of a new King Abdullah University of Science and Technology (KAUST) strategy launched by Saudi Crown Prince Mohammed bin Salman aimed at transforming science and research into economically rewarding innovations as the Kingdom seeks to diversify its economy away from oil revenues and increase the non-oil sector’s contribution to GDP as part of Vision 2030. According to the Saudi Press Agency, the investments of the Deep Technical Innovation Fund promote economic diversification and contribute to the generation of quality technical jobs. Besides the Innovation Fund, the new strategy includes two other key initiatives: the launch of the National Transformation Institute for Applied Research and the reorganization of KAUST’s research institutes in line with national priorities for research, development, and innovation.
3. The Investment Arm of Saudi Research and Media Group SRMG Ventures Invests $5 Million in Anghami App to Acquire a Larger Stake in the Music and Entertainment Sector.
SRMG Ventures, the VC arm of Saudi Research and Media Group, has announced a $5 million investment in the region’s leading music and entertainment streaming platform, Anghami. Anghami has established itself as a leading platform in the region, with more than 120 million registered users compared to 75 million in 2012, a large subscriber base, and lists of more than 100 million Arabic and foreign songs, which has qualified it to become the preferred platform for Arab and international music, podcasts and entertainment.SRMG Ventures’ investment in Anghami’s App reflects its unique and advanced position in the music and audio recording sector, as the music and sound recording industry is expected to grow in the MENA at a compound annual rate of 11%, exceeding that of the global market, and this investment by the largest integrated media group in the MENA region in Anghami represents an essential step in the world’s fastest-growing music industry. SRMG Ventures will further Anghami’s growth trajectory through its extensive media reach and premium content library of recordings and podcasts, enabling Anghami to acquire a more significant stake in the sector, expected to reach $700 million by 2026.
4. Barq Delivery Services closes a $4.9 million investment round led by Jahez to support its growth and innovation plans.
Barq Delivery Services announced the closure of a $4.9 million investment round led by Jahez and the participation of Oryx Fund, GSI Ventures, and Sultan Holding, bringing the value of the company’s total investments since its inception in 2020 to $9.9 million, as it had previously announced the closure of a seed funding round in February last year. Barq enables small and medium stores, e-stores, and logistics companies in Saudi Arabia to access logistics services automatically by linking them with delivery services, and the company stated that a ready-made investment in Barq strengthens our position in the field of logistics services in the Kingdom and supports its growth and innovation plans.
5. The Venture Capital and Private Equity Association in Partnership With SVC unveils Their Series of Training Programs in the Investment Sector.
The Private Venture Capital and Private Equity Association, in partnership with the Saudi Venture Capital – SVC, has announced the launch of a series of development training programs for the year 2023 as a continuation of a series of intensive educational programs targeting those working in the investment sector through a range of specialized programs. This year’s training programs include the Venture Capital Fund Management Program and the Private Equity Fund Management Program, all of which aim to increase the level of professionalism in the venture capital and private equity sector and attract talent to the industry by refining trainees with comprehensive knowledge of funds, building a network of relationships with investors, in addition to analyzing market studies and local and international projects. Professionals and experts from international universities offer these programs, including Stanford University, INSEAD University, and Harvard University professors. In conjunction with this announcement, the association will open applications for its first program, the Venture Capital Fund Management Program, which will be launched in mid-September. It will highlight projects, venture capital investment, business models, types of companies, and the impact of fund financing, contracts, and economic decisions.
6. Egyptian Electronic Payments Company Fawry Is Considering Establishing a Digital Bank in Egypt and Expanding in Saudi Arabia.
Fawry is considering applying for a license to establish a digital bank in Egypt and a final decision will be made this year, founder and CEO Ashraf Sabry told Sharq Economy. These statements coincide with what the Central Bank of Egypt issued last week regarding the rules for licensing and registering digital banks, which will provide customers with banking services through digital channels or platforms, and the new regulations issued by the Central Bank of Egypt require that the largest shareholder in the digital bank be a financial institution with a previous business in similar activities with a percentage of not less than 30% of the total capital, and the licensing requirements included that the capital should not be less than 65 million US dollars according to the price of Official exchange when wishing to practice all banking business. Fawry is also looking at obtaining the license without introducing a foreign partner, especially since the payments company has experience in financial activities such as lending and good volumes of cash. Fawry’s investments last year amounted to about $22.65 million, and the funds were used to expand the company’s network, especially in microcredit, which had a portfolio of $22.65 million by the end of 2022. The payments company also announced its study of external expansion in several countries, including Saudi Arabia, according to the statements of the company’s CEO, who indicated that he will take the final decision on the expansion plan this year in preparation for the start of expansion operations in 2024, where Sabri revealed that the company is communicating with the Saudi Central Bank regarding expansion in the Kingdom, considering that the Saudi market is promising and significant and has high solvency and at the same time is characterized by intense competition in payments.
7. Egyptian Startup Bosta for Shipping and Delivery Wins First Place Worldwide in the Digital Infrastructure Competition at the G20 Summit.
Egyptian startup Bosta won first place worldwide in the Secured Digital Infrastructure competition at the G20 Summit. Bosta, which was founded in 2017 by Mohamed Ezzat, Ahmed Jaber, and Mohamed El Husseini, provides shipping and delivery services from commercial companies to consumers to facilitate all the operations that accompany the e-commerce experience, and make it accessible to everyone, which is reflected in all its services, whether the benefits that accompany the shipping arm, the customer loyalty system, or new services, where the company delivers and ships goods and parcels sent from commercial companies, sellers, or electronic sales platforms to consumers within one to two days maximum, which provides comprehensive coverage to all parts of the Arab Republic of Egypt with more than 25 distribution centers covering the entire governorates of Egypt.
8. Nabeeh Platform for Home and Health Services on Demand Develops Its Financial Solutions and Expands to 6 New Cities in the Kingdom.
The Saudi platform for on-demand home and health services, Nabeeh, announced the addition of a set of financial solutions to its service and expansion to 6 new Saudi cities, including Riyadh, Dammam, Khobar, Jeddah, Qatif and Dhahran. According to its statement, this step aligns with the platform’s vision, which aims to expand its services to cover 10 other Saudi cities in the coming period and then expand to 20 new major cities in the Middle East. Nabeeh stated that its application is now equipped with a digital wallet that allows individual and corporate service providers to control their financial movements, receive requests, and enjoy greater flexibility in terms of monthly periodic payments. The platform also added to its application the feature of changing the payment method by the customer at any stage of the service request and enabling the customer to choose between electronic or cash payment methods according to his desire. It is worth noting that the Nabeeh platform was established in Palestine in 2021 by brothers Fawaz and Saber Samara. It provides cleaning, maintenance, furniture moving, healthcare, and housekeeping services through its digital application that connects customers with qualified service providers. The platform expanded to the Saudi market last year after closing an investment round that relocated its headquarters to Riyadh.
9. Palestinian Investors Launches the Peleset Angels Fund to Support Early-Stage Palestinian Startups.
A group of palestinian angel investors launched the Peleset Angels Fund to support early-stage Palestinian startups. Established in the United States in collaboration with angel investors from Palestine and the diaspora, Peleset Angels Fund aims to bridge the funding gap and empower Palestinian entrepreneurs and founders by supporting their early-stage projects, guiding and helping them build prototypes (MVP), and exploring international markets. The Fund pays special attention to supporting women cadres and enhancing their capabilities in the entrepreneurship sector to enhance the opportunity for women to benefit from funding allocated to startups and develop the entrepreneurship ecosystem in Palestine.
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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