The Middle East has emerged as a dynamic hub for innovative startups in recent years, driven by a burgeoning tech ecosystem and robust investor interest. The year 2023 saw a significant surge in funding across various sectors, reflecting the region’s growing influence on the global entrepreneurial stage.
Leading the charge is Tabby, a Riyadh-based fintech firm that has raised $1.7 billion, revolutionizing payments with its buy-now-pay-later model. Other notable startups include Tamara, which has secured $955.6 million for its installment-based shopping platform, and Kitopi, a Dubai-based cloud kitchen startup with $804 million in funding, transforming the food delivery landscape.
Meanwhile, companies like MNT-Halan and Pure Harvest Smart Farms are making strides in microfinance and sustainable agriculture, respectively. MNT-Halan has garnered $470 million to support financial inclusion in Egypt, while Pure Harvest has raised $334.4 million to advance controlled-environment farming in the UAE.
These startups, alongside others like Alpheya, Rain, Nana, Floward, and Yassir, are not only pushing the boundaries of innovation but also shaping the future of various industries in the Middle East.
List of 10 Most Funded Startups in the Middle East 2023
This list highlights the top 10 most funded startups in the Middle East in 2023, showcasing their impressive achievements and contributions to diverse industries such as fintech, e-commerce, cloud infrastructure, and more.
These startups have not only attracted substantial investments but have also demonstrated remarkable growth and strategic expansion, setting new benchmarks for success in the region.
1. Tabby
Details:
- Total Funding Received: $1.7 Billion
- Website: tabby.ai
- Located In: Riyadh, Saudi Arabia
- Founders: Daniil Barkalov, Hosam Arab
- Founded In: 2019
- Industry: Fintech, Payments
- Investors: Saudi Venture Capital Company, Soros Capital Management, JP Morgan, Hassana Investment Company (HIC), PayPal Ventures, Arbor Ventures, Wellington Management, Mubadala, STV
Tabby operates actively in the billing, finance, and fintech sectors, reshaping how people manage their finances. The company offers a payments and shopping app that allows users to purchase items and pay for them in installments, promoting financial freedom and better money management.
It has secured a total funding of $1.7 billion through 13 rounds. The latest funding was raised on December 21, 2023, from a debt financing round. Tabby also recently expanded its reach by acquiring Tweeq on September 3, 2024. The company’s headquarters is situated in the Gulf Cooperation Council (GCC) region, specifically in Riyadh, and it has achieved unicorn status, highlighting its remarkable growth.
2. Tamara
Details:
- Total Funding Received: $955.6 Million
- Website: tamara.com
- Located In: Riyadh, Saudi Arabia
- Founders: Abdulmajeed Alsukhan, Abdulmohsen Albabtain, Turki Bin Zarah
- Founded In: February 2020
- Industry: E-commerce, Financial Services, FinTech, Payments, Retail
- Investors: Endeavor Catalyst, Sanabil, Saudi National Bank, Coatue, Pinnacle Capital, Checkout.com and more.
Tamara is a leading shopping and payments platform based in Riyadh, Saudi Arabia. It enables customers to pay for their purchases in installments, offering flexibility in shopping. Tamara operates across the Middle East, with additional offices in the UAE, Egypt, Germany, and Vietnam. The platform focuses on revolutionizing how people shop, pay, and bank, empowering users in their daily transactions.
It operates within various industries, including e-commerce, fintech, payments, and retail. Tamara has successfully raised $955.6 million in funding over eight rounds, with the most recent Series C round completed in December 2023. The company is backed by 17 investors, including notable names such as Endeavor Catalyst, Sanabil, and Saudi National Bank.
3. Kitopi
Details:
- Total Funding Received: $804 Million
- Website: kitopi.com
- Located In: Dubai, United Arab Emirates
- Founders: Mohamad Ballout, Saman Darkan, Bader Ataya, Andy Arenas
- Founded In: January 5, 2018
- Industry: Cloud Infrastructure, Delivery, Food and Beverage, Food Delivery, Restaurants
- Investors: SoftBank Vision Fund, Omakase Investment Club, B. Riley Financial, Next Play Capital, Nordstar, Doğuş Grubu, DisruptAD, Chimera Investment, Knollwood Investment Advisory, Lumia Capital, BECO Capital, Crescent Enterprises
Kitopi is a cloud kitchen startup based in Dubai, United Arab Emirates. Founded on January 5, 2018, by Mohamad Ballout, Saman Darkan, Bader Ataya, and Andy Arenas, Kitopi operates as a Kitchen as a Service (KaaS) platform. It helps restaurants launch delivery-only locations by providing essential managed infrastructure and software with minimal upfront costs.
In 2020, Kitopi expanded its offerings by launching a groceries vertical. This new service provides a one-stop-shop for food and essentials with delivery available in Dubai. Kitopi runs over 60 cloud kitchens across the UAE, Saudi Arabia, Kuwait, and Bahrain. Although it expanded to the United States in 2019, it exited the market due to the pandemic.
4. MNT-Halan
Details
- Total Funding received: $470 Million
- Website: mnt-halan.com
- Located in: Cairo, Egypt
- Founders: Ahmed Mohsen, Mohamed Aboulnaga, Mounir Nakhla
- Founded in: 2017
- Industry: Micro Lending, Financial Services
- Investors: International Finance Corporation, Lorax Capital Partners, Chimera Investment, Commercial International Bank, Apis Partners, Development Partners International, GB Corp, Lunate, Agricultural Bank of Egypt.
MNT-Halan is a microfinance lending and payments platform that offers a range of financial services tailored for businesses. The platform integrates microlending, bill payment, and other services, empowering local entrepreneurs to access opportunities for wealth creation. As a digital bank, MNT-Halan aims to replace cash with electronic solutions like mobile wallets and cards, making a significant impact in financial inclusion.
MNT-Halan’s ability to secure backing from 28 investors underscores its role as a transformative force in fintech, entrepreneurship, and social impact across the Middle East and Africa.
5. Pure Harvest Smart Farms
Details:
- Total Funding Received: $334.4 Million
- Website: pureharvest.ae
- Located In: Abu Dhabi, UAE
- Founders: Mahmoud Adi, Sky Kurtz
- Founded In: October 1, 2016
- Industry: Agriculture, AgTech, Farming, Fruit
- Investors: IMM Investment, Metric Capital Partners, The Olayan Group, Shorooq Partners, Shuaa Capital psc, Sancta Capital Group, Abu Dhabi Investment Office (ADIO), Wafra International Investment, Mohammed Bin Rashid Innovation Fund (MBRIF)
Pure Harvest Smart Farms is a leading agribusiness based in Abu Dhabi, UAE, specializing in the production of premium fruits and vegetables throughout the year. The company is known for its innovative approach to agriculture, using advanced controlled-environment technologies to grow high-quality produce in the challenging climates of the Arab Gulf region.
Pure Harvest Smart Farms aims to pioneer sustainable agriculture by leveraging cutting-edge technologies and horticultural best practices, ensuring a consistent supply of fresh, high-quality produce throughout the year.
6. Alpheya
Details:
- Total Funding received: $300 Million
- Website: alpheya.com
- Located in: Abu Dhabi, UAE
- CEO: Roger Rouhana
- Founded in: 2023
- Industry: Finance, Financial Services, FinTech
- Investors: Lunate, BNY
Alpheya is a software company that provides cloud-native, AI-powered wealthtech solutions tailored for private banks and investment houses. Founded in 2023 by Roger Rouhana, the company operates from Abu Dhabi, United Arab Emirates, and focuses on financial services within the fintech sector. Alpheya serves a global market, including regions such as Europe, the Middle East, and Africa (EMEA).
Alpheya has successfully raised $300 million in a single funding round, which took place on November 21, 2023. The round was part of a Venture – Series Unknown funding type. The company is supported by two prominent investors, Lunate and BNY, both of whom have contributed as lead investors in Alpheya’s journey.
7. Rain
Details:
- Total Funding Received: $222.7 Million
- Website: rain.com
- Located In: Manama, Bahrain
- Founders: Abdullah Almoaiqel, AJ Nelson, Joe Dallago, Yehia Badawy
- Founded In: September 2017
- Industry: Cryptocurrency, Financial Services, Financial Exchanges
- Investors: Kleiner Perkins, Paradigm, A’Z Angels, CMT Digital, Coinbase Ventures, Middle East Venture Partners (MEVP), Global Founders Capital, Cadenza Ventures, Jameel Investment Management Company, Vision Ventures
Rain is a digital currency exchange and custodian based in Manama, Bahrain. Established in September 2017, Rain aims to simplify digital transactions and make cryptocurrencies more accessible to a broader audience. By focusing on regulatory compliance and robust security, Rain is advancing financial literacy and accelerating the adoption of digital assets in the Middle East.
The company was founded by Abdullah Almoaiqel, AJ Nelson, Joe Dallago, and Yehia Badawy. It operates as a regulated cryptocurrency exchange and has gained significant traction since its inception. Rain has successfully raised a total of $222.7 million in funding across eight rounds. The latest funding was achieved in January 2022 through a Series B round, which raised $110 million.
8. Nana
Details:
- Total Funding Received: $212.2 Million
- Website: nana.sa
- Located In: Riyadh, Ar Riyad, Saudi Arabia
- Founders: Abdulmajeed Alsukhan, Bakr Elsherif, Sami Alhelwah
- Founded In: 2016
- Industry: E-Commerce, Grocery Delivery
- Investors: Kingdom Holding Company, Sultan Holdings, Al-Jasser Holding, Dallah Albaraka Holding, Uni-Ventures, Red Diamond Foodservice, AlJammaz Group, FIM Partners, Quencia Capital, STV, Faith Capital, Impact46, Middle East Venture Partners (MEVP).
Nana is an online grocery shopping and delivery platform that provides doorstep delivery of groceries and other home essentials. Established in 2016, the company operates out of Riyadh, Saudi Arabia, and has grown significantly, serving customers with a wide variety of products, including groceries, fruits, vegetables, cosmetics, electronics, bakery items, and flowers.
Nana operates actively across the Middle East and is known for its user-friendly platform that enables customers to order essentials online.
9. Floward
Details:
- Total Funding Received: $186.3 Million
- Website: floward.com
- Located In: Riyadh, Saudi Arabia
- Founder: Abdulaziz Al Loughani
- Founded In: 2017
- Industry: Delivery Service, E-Commerce, Flowers, Internet, Same Day Delivery
- Investors: Aljazira Capital, 500 Global, STV, Impact46, Faith Capital, BNK Ventures
Floward is a prominent online platform specializing in flowers and gifts, providing eCommerce solutions with a focus on same-day delivery. Based in Riyadh, Saudi Arabia, Floward collaborates with local and international brands to ensure prompt service.
The company has rapidly expanded, operating in 36 cities across nine countries in the MENA region and the United Kingdom. It made its first foray outside the Middle East with a launch in London in December 2020.
Floward has successfully raised $186.3 million over four funding rounds, with its most recent Series C round occurring on February 7, 2023. The company is backed by several notable investors, including Aljazira Capital, 500 Global, STV, Impact46, Faith Capital, and BNK Ventures.
10. Yassir
Details:
- Total Funding Received: $180.3 Million
- Website: yassir.com
- Located In: Algiers, Algeria
- Founders: El Mahdi Yettou, Noureddine Tayebi
- Founded In: 2017
- Industry: Financial Services, Information Technology, Mobile Apps, Transportation
- Investors: Bond, Y Combinator, DN Capital, Unpopular Ventures, Quiet Capital, Dorsal Capital, Spike Ventures, Kinfolk Venture Capital
Yassir is a prominent super app that is reshaping the way daily services are provided. Founded in 2017 by El Mahdi Yettou and Noureddine Tayebi, Yassir offers a range of on-demand services including ride-hailing, delivery, and payment solutions. The app operates in 45 cities across multiple countries and is a key player in the financial services, information technology, and mobile apps industries.
The company is known for its innovative approach, recently expanding its offerings to include financial services for digital payments, savings, and loans. Yassir aims to drive the digital economy in Africa by creating a marketplace that combines convenience with social values.
Also Read: 10 Most Funded Startups in the Middle East 2022
To Conclude
The Middle East has emerged as a thriving hub for innovation and investment, with a growing number of startups reshaping industries across the region. The remarkable success of these 10 most funded startups in the Middle East during 2023 highlights the region’s burgeoning entrepreneurial spirit and the diverse opportunities for innovation.
From fintech and e-commerce to cloud kitchens and agricultural technology, these startups are not only attracting significant investments but are also driving transformational change across various sectors. Their achievements underscore the Middle East’s growing prominence on the global startup stage and set a strong foundation for future growth and innovation.
As these companies continue to grow and evolve, they will undoubtedly play a crucial role in the ongoing transformation of the MENA region and beyond.
Last Updated on September 14, 2024 by Safiya K
