MEA Tech & Startup Digest: Issue #88
Mehmet Gonullu
Igniting Tech & Venture Ecosystems | Startup Advisor | GTM Partner | Investor | Podcast Host | Keynote Speaker
Welcome to the 88th edition of “The CTO Show’s MEA Tech & Startup Digest”!
Welcome to this edition of our newsletter, where we delve into the latest developments shaping the tech and startup ecosystems across Africa and the Middle East. This week, we observe a dynamic surge in fintech innovations, significant funding rounds, strategic acquisitions, and expansions that signal a robust growth trajectory in these emerging markets.
Whether you’re one of our 2,110 subscribers or new to our community, we’re thrilled to have you join us on this journey of discovery and growth in tech, startups, and entrepreneurship.
Let’s dive into this week’s rich insights!
🌍 Regional Investment Highlights & Startup Insights:
Fintech Innovations and Funding in Africa and MENA
Scale Accelerates Card Issuing in Africa with $700,000 Pre-Seed Funding
Scale, an African-founded issuer orchestration platform, has secured $700,000 in pre-seed funding. This injection aims to propel its expansion into Kenya, Zambia, and Côte d’Ivoire, simplifying and expediting card issuing for fintechs across the continent. By leveraging its SOIL platform, Scale reduces the time to market for fintechs launching card products, thus empowering them to overcome traditional barriers and support underserved communities.
Thoughts: Scale's approach addresses a critical bottleneck in the African fintech landscape—efficient card issuance. By streamlining this process, they are enabling fintechs to focus on innovation rather than infrastructural hurdles, which could significantly accelerate financial inclusion in the region.
Krti Raises $1.5 Million to Enhance E-Commerce Payment Solutions
Kuwait-based fintech startup Krti has raised $1.5 million in a pre-seed round. Founded in 2022, Krti offers payment solutions for online merchants and shoppers, aiming to enrich the e-commerce sector with a unique loyalty program that maximizes bank card benefits. The funding will support Krti's upcoming launch in Kuwait and Saudi Arabia.
Thoughts: Krti's focus on enhancing payment solutions and loyalty programs could redefine customer engagement in the e-commerce space. By maximizing bank card benefits, they are not only incentivizing consumers but also fostering stronger partnerships with financial institutions.
Omani BNPL Fintech QPay Closes Seed Round
Oman-based fintech QPay has closed a seed funding round led by Cyfr Capital. Established in 2022, QPay provides a licensed Buy Now, Pay Later (BNPL) service, offering Omani consumers interest-free installments and greater financial flexibility. With approval from the Central Bank of Oman, QPay aims to promote financial inclusion across the Sultanate.
Thoughts: The BNPL model is gaining traction globally, and QPay's regulatory compliance positions it well to capture the Omani market. This could catalyze a shift in consumer purchasing behavior and open up new opportunities for merchants.
OCTA Secures $2.25 Million to Automate SME Receivables
UAE-based fintech OCTA has raised $2.25 million in a pre-seed funding round co-led by Quona Capital and Sadu Capital. Founded in early 2024, OCTA's platform automates accounts receivable management for SMEs, streamlining payment collections to improve cash flow and reduce overdue payments.
Thoughts: Cash flow management is a perennial challenge for SMEs. OCTA's solution addresses this pain point by automating receivables, which could enhance the financial stability of small businesses and contribute to economic growth in the region.
Strategic Acquisitions and Expansions
Nana Acquires Egyptian Fintech Rasseed to Expand Digital Offerings
Saudi-based grocery delivery startup Nana has acquired Rasseed, a digital gift card solutions provider. This strategic move allows Nana to introduce a "digital cards" category in its app, enabling users to purchase and recharge cards instantly.
Thoughts: Nana's acquisition of Rasseed aligns with the growing demand for digital solutions in everyday transactions. By integrating digital gift cards, Nana is diversifying its services and enhancing customer convenience, which could strengthen its market position.
4Partners Raises $3.6 Million to Boost Regional Expansion
UAE-headquartered dropshipping service 4Partners has secured $3.6 million in funding to support its regional expansion. Originally founded in Russia in 2017, the company provides e-commerce solutions by handling inventory, shipping, and order fulfillment.
Thoughts: As e-commerce continues to surge in the MENA region, 4Partners' model offers a scalable solution for businesses looking to enter the online retail space without significant upfront investment in logistics and inventory management.
XA Network Expands to Africa to Support Innovation
Investment network XA Network has launched XA Africa to support startups on the continent. Founded by tech veterans, XA Africa aims to empower African tech founders by connecting them with seasoned investors and industry experts.
Thoughts: The expansion of XA Network into Africa signifies a growing recognition of the continent's innovation potential. By facilitating cross-border collaboration, they are bridging ecosystems and could accelerate the growth of impactful startups.
Industrial and Infrastructure Development
ARISE IIP Raises $443 Million to Accelerate African Industrial Development
Pan-African industrial park developer ARISE IIP has secured a $443 million capital raise. This includes a $300 million investment from Afreximbank’s Fund for Export Development in Africa (FEDA) and $143 million from Africa Finance Corporation (AFC). The funding will support ARISE IIP's expansion across 12 African countries.
Thoughts: Infrastructure development is crucial for sustainable economic growth. ARISE IIP's significant capital raise underscores investor confidence and could catalyze industrialization efforts, enhancing Africa's participation in global value chains.
Startup Investment Trends in MENA
MENA Startups Secure $1.3 Billion Despite Investment Decline
Startups in the MENA region raised $1.3 billion from January to September 2023, marking a 13% decline from the previous year, accrording to Magnitt. Despite the decrease, MENA's funding activity showed resilience compared to steeper declines in Africa and Southeast Asia. Saudi Arabia accounted for 39% of total funding, with fintech remaining the top sector.
Thoughts: While there's a slight dip in funding, the MENA region's resilience indicates a maturing startup ecosystem. The dominance of fintech suggests continued opportunities for innovation in financial services, especially when excluding mega deals, which paints a more optimistic picture.
Recommended by LinkedIn
Prop-Tech and Logistics Startups Securing Funding
Ejari Raises $14.65 Million to Revolutionize Rental Payments
Saudi prop-tech startup Ejari has raised $14.65 million in a seed round combining debt and equity. Founded in 2022, Ejari offers a Rent Now, Pay Later (RNPL) solution, providing flexibility in rental payments for tenants across 17 cities in Saudi Arabia.
Thoughts: Ejari's RNPL model addresses a significant need in the rental market by easing the financial burden on tenants. This could lead to higher occupancy rates and benefit landlords, potentially transforming the real estate industry.
Yamm Secures Pre-Seed Funding to Enhance Post-Purchase Experience
Saudi-based logistics startup Yamm has completed its pre-seed funding round led by Flat6Labs. Founded in 2023, Yamm provides an automated, end-to-end solution for managing returns, refunds, and logistics, aiming to improve the post-purchase experience for consumers and merchants.
Thoughts: By streamlining the returns and refunds process, Yamm is tackling a common pain point in e-commerce. Enhancing the post-purchase experience can lead to increased customer loyalty and repeat business, which is vital for retailers.
Conclusion
The tech landscapes in Africa and the Middle East are witnessing significant advancements, marked by strategic investments, innovative solutions, and cross-border collaborations. As these regions continue to evolve, staying informed and engaged is crucial for stakeholders looking to capitalize on emerging opportunities.
🎙️Episodes Recap:
In this episode of The CTO Show with Mehmet, we welcome Nick Jain , CEO of IdeaScale, a leading B2B SaaS platform focused on innovation management. Nick shares his journey from Wall Street to the world of SaaS and innovation, bringing with him years of experience in investment and executive leadership. Starting with his background in mathematics, physics, and an MBA from Harvard, Nick describes how his career pivoted toward running businesses with a focus on driving value for customers and managing scalable growth.
In this episode of The CTO Show with Mehmet, we sit down with Tommy Ogden , Director at Activera Consulting, to explore the intersection of analytics, frameworks, and AI in driving value within the big data landscape. Tommy, a seasoned consultant with experience across both boutique and big-name firms like Accenture, shares insights into why he returned to the world of boutique consulting, where agility and flexibility are key to rapid and impactful transformations.
In this episode of The CTO Show with Mehmet, we dive into the vital topic of employee motivation and loyalty, specifically within the MENA region, with Kirill Morozov , CEO of TEAL HR. Kirill joins us to discuss his journey and the driving force behind founding TEAL HR, a platform designed to transform how businesses motivate and retain their employees. Drawing from his background in industries ranging from medical equipment to smart cities, Kirill shares his unique perspective on why employee satisfaction is crucial for a thriving business and how he’s working to bridge the gap between business goals and employee happiness.
🔗 Useful Resouces:
- iAccel Gulf Accelerator: iAccel Gulf Business Incubator (“iAccel GBI”) is a Global Accelerator Network (GAN) certified accelerator that aims to help early-stage tech startups turn their innovative ideas into successful businesses in MENA Region.
- Wows Global: This investment portal offers you the tools and support to connect with investors, manage your stakeholder relations, and navigate your financing requirements effectively. Start by listing your company and get guided towards your financing goals. Join and gain the attention of the biggest investors in the ASEAN & MENA regions.
Connect & Grow with Us
Thank You 🙏: Your engagement drives our shared journey forward. Here's to another week of innovation and growth!
Best, Mehmet
Talent Recruiter | 100K+ followers | Top Voice | Speaker | Investor
2moFintech's really shaking things up, huh? The cash flow is wild. Which highlight grabbed your attention most?