MEA Tech & Startup Digest: Issue #89
Mehmet Gonullu
Igniting Tech & Venture Ecosystems | Startup Advisor & Mentor | Investor | Podcast Host | Keynote Speaker
Welcome to this week’s edition of our newsletter, where we delve into the latest developments and trends within the MENA startup ecosystem. Over the past week, we’ve witnessed significant funding rounds, strategic acquisitions, and insightful movements shaping the future of technology and innovation in the region. As we aim to educate and demonstrate thought leadership, let’s explore these developments categorized for your convenience.
Whether you’re one of our 2,119 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!
Major Funding Rounds and Investments
MENA Startups Raise $282 Million in September 2024
The MENA startup ecosystem showcased remarkable resilience, securing $282 million in September 2024. This represents a 234% month-over-month (MoM) and an astounding 607% year-over-year (YoY) increase, with fintech emerging as the leading sector. Saudi Arabia dominated the funding, raising 60% of the total, while the UAE and Egypt followed.
PiP World Secures $10 Million Seed Funding
UAE-based PiP World, a Web3 gaming and edtech ecosystem founded by Saad Naja in 2022, has raised $10 million in seed funding from Exinity. The investment aims to expand its gamified financial education offerings globally, bridging the financial literacy gap, especially in emerging markets.
Read more: PiP World secures $10 million from Exinity
Rabbit Mobility Raises $1.3 Million for Expansion
Egypt-based Rabbit Mobility, a micromobility platform offering electric scooters and bikes, has raised $1.3 million in a funding round led by 500 Global and Untapped Global. Founded in 2020, Rabbit aims to expand its fleet and operations across Egypt and North Africa.
Read more: Rabbit Mobility raises $1.3 million
UMX Studio Raises $4.5 Million from Jetapult
Saudi Arabia-based UMX Studio has raised $4.5 million from India-based investment firm Jetapult, marking Jetapult’s first investment in the MENA region. Founded by Ali Alharbi in 2014, UMX develops mobile car games and plans to expand its portfolio globally.
Read more: Jetapult invests $4.5 million in UMX Studio
Agenz Secures Undisclosed Investment from Renew Capital
Morocco-based proptech startup Agenz has received an undisclosed investment from Renew Capital to expand its real-time property valuation services across Morocco and Africa. Founded in 2020, Agenz uses data intelligence to provide instant property valuations and market insights.
Read more: Agenz secures investment
AILA Closes $1.15 Million Pre-Seed Round
Saudi-based edtech startup AILA has raised $1.15 million in a pre-seed funding round led by Sabah Hub, with participation from White Hill Capital and Saudi angel investors. Founded in 2023, AILA uses generative AI to deliver personalized, curriculum-aligned education.
Read more: AILA raises $1.15 million
JARAS Hospitality Secures $666,000 in Pre-Seed Funding
Saudi-based JARAS Hospitality has secured $666,000 in a pre-seed funding round led by undisclosed angel investors. Founded in 2023, JARAS offers integrated digital solutions for hotel management, focusing on bookings, availability, pricing, and guest experiences.
Read more: JARAS Hospitality secures funding
Moonbase Capital Launches $15 Million SME Investment Fund
Spain-based Moonbase Capital has launched a $15 million investment vehicle aimed at supporting entrepreneurs in acquiring and growing SMEs globally. Led by Tamer El Bahay and Tarek El Gammal, the fund will focus on investing in around 15 SMEs over the next 3-4 years.
Read more: Moonbase Capital launches SME fund
Strategic Acquisitions and Relocations
Tawaref Acquires Amaana.ai to Enhance AI Solutions
Saudi-based investment community Tawaref has acquired Amaana.ai, a Riyadh-based AI company focused on facilitating business entry into Saudi Arabia. The acquisition aims to bolster Tawaref’s AI-driven solutions, strengthening its support for startups across MENA.
Read more: Tawaref acquires Amaana.ai
WellPal Relocates to Saudi Arabia with New Investment
Egyptian e-commerce platform WellPal has relocated to Saudi Arabia after securing an undisclosed investment from an angel investor. The move aligns with WellPal’s goal of supporting Saudi Vision 2030 by promoting healthier lifestyles.
Read more: WellPal relocates to Saudi Arabia
Venture Capital Landscape
Saudi Venture Capital Invests $15 Million in Vision Ventures’ Fund
Saudi Venture Capital (SVC) has invested $15 million in Saqr Fund II, a venture capital fund managed by Vision Ventures. The fund focuses on early-stage startups in Saudi Arabia and the MENA region.
Read more: SVC invests in Vision Ventures
GCC Venture Capital Funding Grows by 30% Amid Global Slowdown
Despite a global downturn in venture capital funding, the Gulf Cooperation Council (GCC) witnessed a 30% growth. Saudi Arabia and the UAE dominated the GCC’s VC landscape, accounting for 92% of total funding.
Read more: GCC venture capital funding grows
Abhi Closes $15 Million Debt Round Led by Shorooq Partners
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UAE-based fintech Abhi has secured $15 million in debt financing from Shorooq Partners and Amplify Growth Partnership to expand its earned wage access (EWA) services across the MENAP region.
Read more: Abhi closes $15 million debt round
Technological Advancements and Initiatives
e& Partners with AWS in $1 Billion Deal
UAE telecom giant e& has partnered with Amazon Web Services (AWS) in a $1 billion deal over six years. The collaboration aims to accelerate cloud adoption and digital transformation across the MENA region.
Read more: e& and AWS partnership
Yandex to Invest $400 Million in Türkiye
Yandex plans to invest $400 million in Turkey over the next three years to localize its IT products, expand services, and create jobs. The focus is on launching AI-powered, hyper-localized services tailored to Turkish users.
Read more: Yandex invests in Turkey
Qualcomm Launches 2024 Africa Startup Mentorship Program
Qualcomm Technologies has launched its 2024 Make in Africa Startup Mentorship Program, aiming to support early-stage deep-tech startups utilizing AI, connectivity, and computing solutions.
Read more: Qualcomm’s Africa mentorship program
Market Dynamics and Trends
High Interest Rates Impact Turkish VC Funding
Turkish venture capital funding has declined sharply in 2024, with only $301 million raised in the first nine months—a 64% drop from the previous year. High-interest rates above 50% have deterred VC activity.
Read more: Turkish VC funding slump
Türkiye Outpaces European Peers in Seed-Stage Investments
Türkiye has led Europe in seed-stage investments from January to September 2024, with 247 deals, primarily driven by the TÜBITAK BiGG Fund, which provided funding for 228 ventures.
Read more: Türkiye leads in seed-stage investments
Industry-Specific Developments
Jetapult Invests $4.5 Million in Saudi Game Studio UMX
Jetapult, backed by Accel Partners, has made its first MENA investment by funding Saudi-based UMX Studio with $4.5 million. UMX develops mobile car games and plans to expand globally.
Read more: Jetapult invests in UMX Studio
Abhi Expands Earned Wage Access Services Across MENAP
UAE-based fintech Abhi is expanding its earned wage access services after securing $15 million in debt financing. The company focuses on financial inclusion for employees and SMEs.
Conclusion
The MENA region and its neighboring markets continue to exhibit robust growth and innovation, with significant investments and strategic movements shaping their startup ecosystems. This week’s developments highlight the critical roles of technology, strategic partnerships, supportive policies, and targeted investments in driving progress.
For investors, entrepreneurs, and stakeholders, staying informed and adaptable is essential. The focus on fintech, AI, sustainable solutions, education, and healthcare presents abundant opportunities for those ready to engage with these evolving markets.
🎙️Episodes Recap:
In this episode of The CTO Show with Mehmet, we dive into the transformative world of digital health with Richard Kedziora , Co-Founder, CEO, and CTO of Estenda Solutions. RJ joins us to discuss how AI, wearable technology, and an empathetic approach to user needs are shaping the future of healthcare. With over two decades of experience leading Estenda, RJ brings a unique perspective on the intersection of technology and patient care.
In this episode of The CTO Show with Mehmet, we’re joined by Adrian Mendoza , General Partner and co-founder of Mendoza Ventures. Based in Boston, Adrian has carved a unique path from being a tech founder and CTO to a venture capitalist, specializing in AI, fintech, and cybersecurity investments. With firsthand experience navigating the startup ecosystem, Adrian brings a unique empathy and understanding to his role as an investor. He shares his journey from startup founder to venture capitalist, discussing the valuable lessons he learned along the way.
In this episode of The CTO Show with Mehmet, we sit down with Alina Timofeeva , an expert in digital transformation, cloud technology, and financial services. Alina has a wealth of experience working with global institutions like HSBC, JP Morgan, and Crédit Suisse, leading them through complex digital transformations. Throughout the conversation, Alina shares her insights into the evolution of financial services, from cloud adoption to the cutting-edge possibilities of quantum computing.
🔗 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
AI in Education and Learning Expert, Creator of the world's first publicly available AI teacher, Upskilled 47,000 learners globally, Multiple Award recipient including from the Prime Minister of UK and 30 under 30 (Mint)
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