Startup Wrap – Saudi and Egyptian startups lead funding activity

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Updated 01 October 2024
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Startup Wrap – Saudi and Egyptian startups lead funding activity

CAIRO: Funding activity flourished in the Middle East and North Africa region, driven largely by Saudi and Egyptian startups.

The region experienced a variety of funding rounds across diverse sectors, alongside the graduation of accelerator programs.

Saudi startup Blend successfully raised SR5 million ($1.3 million) in a pre-seed investment round backed by a group of angel investors.

These investments aim to develop innovative tech solutions serving the restaurant, cafe, hypermarket and cloud kitchen sectors.

Founded last year by Omar Al-Lihyan, Blend offers a system that integrates multiple food delivery platforms into a single screen. This allows restaurant owners to efficiently manage orders and items while easily tracking reports. The company has already integrated with five local delivery applications.

“As the only local Saudi company serving this sector, we have a deep understanding of the real challenges and technical needs that business owners face when dealing with delivery applications,” Al-Lihyan said.

The company said in a press release it planned to expand to other Gulf countries, including Kuwait and Bahrain, by the end of next year and across the region by the end of 2026.

These developments come at a time when the restaurant and cafe sector was undergoing significant changes in line with Saudi Vision 2030, which aims to attract tourists and increase the population in the Riyadh region to 15 million people, according to the press release.

Al-Lihyan said new players were expected to enter the market and that 30 percent of Blend’s customers had not yet started their operations.

Blend has graduated from several programs supporting startups, including the Misk Accelerator and MVPLab Accelerator under the National Information Technology Development Program, and has a presence at the Zaka Center under Monsha’at.

Qardy secures seven-figure pre-seed round to boost digital lending for MSMEs in Egypt

Qardy, a digital lending marketplace for financial institutions to fund micro, small and medium enterprises, has successfully secured a seven-figure pre-seed round of investment.

The funding round saw participation from White Field Ventures, Vastly Valuable Ventures and other angel investors.

Since its soft launch in late 2022, Qardy claims to have become a trusted partner for MSMEs and financial institutions. The company said it had more than 1,000 corporate clients and had facilitated loan transactions worth about $12 million.

Qardy offers a range of financial programs to support MSMEs with their working capital and capital expansion needs through a network of financial institutions, including national and commercial banks, leasing, factoring and microfinance companies.

“We are thrilled to have reached this important milestone in our journey,” Chief Operating Officer Tamer El-Manasterly said.

“The support and trust of our investors have been instrumental in driving our growth and enabling us to expand our reach and impact in the market. This investment will allow us to further enhance our services, as well as accelerate our plans for expansion in Saudi Arabia and the region,” he said.

500 Global, a key investor, expressed confidence in Qardy’s mission to democratize access to financial services.

Amal Dokhan, managing partner at 500 Global, said: “We are thrilled to support Qardy in their journey toward empowering businesses with accessible and efficient financial solutions. We are confident in their ability to drive positive change in the fintech sector.”

Kapil Agrawal, managing director at White Field Ventures, echoed the sentiment and said Qardy had the potential to disrupt the lending landscape in Egypt and Saudi Arabia.

“Qardy’s adept execution capabilities and unwavering commitment to customer-centric solutions are in perfect alignment with our investment ethos. We are excited about the achievement Qardy has reached and are fully prepared to support their expansion into the KSA,” she said.

Lucky One raises $3m to scale consumer credit offerings in Egypt

Leading Cairo-based consumer credit fintech Lucky One has raised $3 million in a convertible note to bolster its path to profitability by the first quarter of 2025 and scale its credit lending services for the Egyptian masses.

The financing round saw participation from existing investors, including Lorax Capital Partners, KEM and DisrupTech Ventures.

The funds will be used to expand the platform’s credit services, enhancing its position as a leading consumer credit fintech in Egypt.

Co-founder and CEO Momtaz Moussa said: “We are thrilled to have successfully closed this round, which will fuel our ambitious growth plans and support our mission of providing accessible consumer credit solutions to underbanked Egyptians. This round reaffirms the trust our investors have placed in us and solidifies our commitment to achieving sustainable profitability while creating true value in the Egyptian market.”

On the path to sustainable profitability, Lucky One leverages its collection processes and low default rates to scale its consumer credit vertical effectively.

General Manager Mohamed Sayed highlighted the traction gained over the past five years and the company’s plans to offer a comprehensive range of financial services, from instant discounts and cashback to lending.

Co-founder and Chairman Ayman Essawy highlighted the company’s dedication to delivering innovative financial services and its commitment to profitability and regional expansion within the next 24 months, positioning Lucky One as a key player in the evolving Egyptian fintech sector.

Sandbox graduates seven startups in its fourth cohort

UAE-based Sandbox, the accelerator program backed by Oraseya Capital, has celebrated the graduation of seven startups as part of its fourth cohort.

Sandbox is a five-month program that provides startups with more than 50 hours of workshops, including access to financial analytics, marketing strategies and legal compliance programs.

The seven startups that made it to the finals are Qureos, Herogo, Lisan, Sthrive, Zoya, JobEscape and Opteam. Each received an investment of $150,000.

Twlm secures $266,000 investment to expand order pickup services in Saudi Arabia

Twlm said it has secured a SR1 million investment led by Saudi Arabia’s B Group, with participation from angel investors.

Founded last year by Ahmad Al-Dakheel, Abdulaziz Al-Rashoud, Abdullah Al-Dakheel and Walid Al-Qarny, Twlm offers an application that provides order pickup services from more than 250 restaurants and stores.

Twlm plans to use the investment to finance its expansion across the Kingdom, aiming to reach 1,000 restaurants and stores by the end of the year.


NEOM board of directors announces leadership change

Updated 12 November 2024
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NEOM board of directors announces leadership change

  • Head of Public Investment Fund’s Local Real Estate Division since 2018, Al-Mudaifer has a deep and strategic understanding of NEOM and its projects

NEOM: The NEOM Board of Directors on Tuesday announced the appointment of Aiman Al-Mudaifer as acting CEO of the company. Al-Mudaifer assumes leadership of NEOM, following Nadhmi Al-Nasr’s departure.

As NEOM enters a new phase of delivery, this new leadership will ensure operational continuity, agility and efficiency to match the overall vision and objectives of the project.

Al-Mudaifer takes the helm of the organization with the support of a strong leadership team across NEOM’s regions, sectors and departments.

Head of Public Investment Fund’s Local Real Estate Division since 2018, Al-Mudaifer has a deep and strategic understanding of NEOM and its projects.

In his role at PIF, Al-Mudaifer oversees all local real estate investments and infrastructure projects. He is also a board member of multiple prominent companies within the Kingdom.

NEOM is a fundamental pillar of Saudi Vision 2030 and progress continues on all operations as planned, as we deliver the next phase of our vast portfolio of projects including THE LINE, Oxagon, Trojena, Magna and The Islands of NEOM. 

Through these projects, NEOM seeks to achieve harmony between livability, business and nature, and to create a better future for current and future generations.


Maldives, Bulgaria push for greater climate action, financing

Updated 12 November 2024
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Maldives, Bulgaria push for greater climate action, financing

RIYADH: Insufficient financing continues to be a significant barrier preventing many countries, especially underdeveloped nations, from meeting their climate goals, according to the President of the Maldives.

Speaking on the second day of COP29, held in Azerbaijan from Nov. 11-22, Mohamed Muizzu emphasized that small island developing states require trillions, not billions, of dollars in climate finance.

“It is the lack of finance that inhibits our ambitions, which is why this COP, the finance COP, we need to deliver the new climate finance goal. This must reflect the true scale of the climate crisis. The need is in trillions, not billions,” Muizzu said.

He added, “It must consider the special circumstances of small island developing states — it must include adaptation, mitigation, and loss and damage.”

Muizzu also reiterated the importance of the environment for his country, stating: “You have called for stronger climate action. Our call has not changed. Our cause has not strayed because, for us, the environment and the ocean are more than resources. They are our cultural identity.”

In a similar vein, Bulgarian President Rumen Radev addressed the global impact of climate-related disasters, emphasizing that no region is immune to the deadly and costly consequences of climate change.

“Bulgaria is committed not only to being part of regional and energy cooperation initiatives across Central and Eastern Europe, the Balkans, and the Black Sea region but also beyond, by strengthening the links between the European Union and non-EU countries who share our priorities on climate neutrality, just energy transition, energy security, and low-carbon technological innovation,” Radev said.

He further called for broader action, stating, “All parties should undertake greater efforts to integrate climate change adaptation and resilience into all policies and strategies.”


Closing Bell: Saudi main index slips to 12,048

Updated 12 November 2024
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Closing Bell: Saudi main index slips to 12,048

RIYADH: Saudi Arabia’s Tadawul All Share Index fell on Tuesday, losing 58.74 points to close at 12,047.67.

The total trading turnover of the benchmark index was SR5.75 billion ($1.53 billion), with 70 stocks advancing and 152 declining.

Saudi Arabia’s parallel market saw a drop, losing 50.59 points to close at 29,110.41. The MSCI Tadawul Index also declined, shedding 5.06 points to end at 1,516.14.

The best-performing stock on the main market was Al Jouf Cement Co., with a 4.75 percent increase to SR10.58. Other top gainers included Malath Cooperative Insurance Co. and Elm Co., with shares rising by 4.40 percent to SR15.66 and 3.87 percent to SR1,101.1, respectively.

The worst performer on the main index was Fawaz Abdulaziz Alhokair Co., whose share price dropped by 4.42 percent to SR12.12.

National Environmental Recycling Co., also known as Tadweer, announced it had signed a memorandum of understanding with Re Sustainability Middle East Co. to explore the potential for establishing smelters and recycling units in the Kingdom. According to a statement on Tadawul, the deal is valid for one year and carries no immediate financial impact.

The company’s share price declined by 0.45 percent to SR13.4. 

Purity for Information Technology Co. announced it has secured a contract valued at SR10.7 million from Saudi Comprehensive Technical and Security Control Co. to supply technology equipment. The company stated that the financial impact of the contract will be reflected in the first quarter of next year.

Its share price dropped by 0.73 percent to SR8.33.

Red Sea International Co. reported a narrowed net loss of SR2.18 million for the first nine months of this year, compared to a SR54.7 million loss in the same period in 2023. According to a statement on Tadawul, the improvement was driven by a 515.78 percent year-on-year increase in sales revenue. However, Red Sea International’s share price declined by 4.05 percent to SR71.

Lazurde Co. for Jewelry reported a 42.98 percent decline in net profit for the first nine months, totaling SR24.8 million, compared to the same period last year. The company attributed this drop to a 6.61 percent year-on-year decrease in operating profit over the nine-month period. Lazurde’s share price dropped by 2.05 percent to SR13.36.


UN climate chief urges aggressive action as emissions hit GDP

Updated 12 November 2024
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UN climate chief urges aggressive action as emissions hit GDP

  • UN official warned that worsening climate impacts will ‘put inflation on steroids’ unless every country takes bolder climate action
  • Simon Stiell called on governments to leave COP29 with a clear global climate finance plan

RIYADH: The global climate crisis is rapidly evolving into an economic threat, with the impact of emissions reducing the gross domestic product of several countries by up to 5 percent, a UN official said. 

Speaking at the high-level segment for heads of state and government at the COP29 in Baku, Simon Stiell, executive secretary of the UN Framework Convention on Climate Change, emphasized the urgent need for more aggressive climate actions to address economic challenges, including rising inflation. 

“We used to talk about climate action as being mostly about saving future generations. But there has been a seismic shift in the global climate crisis, as the climate crisis is fast becoming an economy killer,” said Stiell. 

He added, “In this political cycle, climate impacts are curving up to 5 percent off GDP in many countries. The climate crisis is a cost-of-living crisis, as climate disasters are driving up costs for households and businesses.” 

Stiell’s comments came shortly after a report by finance consultancy Oxera, which revealed that climate-related extreme weather events have cost the global economy more than $2 trillion over the past decade, with the US being the most affected. 

The UN official warned that worsening climate impacts will “put inflation on steroids” unless every country takes bolder climate action. 

Stiell urged the world to learn from the COVID-19 pandemic, highlighting the economic suffering caused by slow and ineffective collective action on supply chain issues. 

Describing climate finance as “global inflation insurance,” he warned that failing to address the economic toll of climate change would lead to disaster. 

“Letting this issue languish halfway down cabinet agendas is a recipe for disaster,” he said. 

However, Stiell remained optimistic, asserting that effective climate action could save economies and create new economic opportunities. He pointed to the growth of renewable energy as a potential driver of stronger financial states for nations. 

“This isn’t just about saving your economies and people,” he said. “Bolder climate action can drive economic opportunity. Cheap, clean energy can be the bedrock of your economies. It means more jobs, growth, less pollution choking cities, healthier citizens, and stronger businesses.” 

Stiell called on governments to leave COP29 with a clear global climate finance plan and urged international cooperation as the key to combating global warming and ensuring humanity’s survival. 

“We need your direct engagement on new national climate targets and plans — NDCs — so that all of you can benefit from the boom in clean energy and climate resilience,” said Stiell. 

He added: “These are not easy times, but despair is not a strategy, nor is it warranted. Our process is strong, and it will endure. After all, international cooperation is the only way humanity can survive global warming.” 


OPEC revises down global oil demand growth forecasts for 2024, 2025

Updated 12 November 2024
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OPEC revises down global oil demand growth forecasts for 2024, 2025

  • OPEC revised its 2024 global oil demand growth estimate to 1.82 million barrels per day, down from 1.93 million bpd forecast last month

LONDON: The Organization of the Petroleum Exporting Countries has again downgraded its global oil demand growth projections for both 2024 and 2025, marking the fourth consecutive reduction.

The revision, announced on Tuesday, underscores weaker demand expectations for key regions such as China, India, and other parts of the world.

The updated forecast highlights the ongoing challenges faced by OPEC+, the broader alliance that includes OPEC members and partners like Russia. Earlier this month, OPEC+ delayed plans to increase oil output starting in December, citing concerns over falling oil prices.

In its latest monthly report, OPEC revised its 2024 global oil demand growth estimate to 1.82 million barrels per day, down from 1.93 million bpd forecast last month. This marks the first revision to the outlook since it was initially set in July 2023.

China was the primary driver of the downward revision. OPEC reduced its forecast for Chinese oil demand growth to 450,000 bpd, down from 580,000 bpd, noting that diesel consumption in September dropped year on year for the seventh consecutive month. OPEC attributed this decline to a slowdown in construction and weak manufacturing activity, as well as the rising use of LNG-fueled trucks in China.

The weaker outlook weighed on oil prices, with Brent crude trading below $73 per barrel following the release of the report.

The demand outlook for 2024 remains uncertain, with significant differences among forecasters regarding the strength of global demand growth, particularly concerning China’s recovery and the pace at which the world transitions to cleaner fuels.

In addition to the 2024 revision, OPEC also lowered its forecast for global oil demand growth in 2025 to 1.54 million bpd, down from the previous estimate of 1.64 million bpd.