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Startup Wrap – Saudi startup ecosystem leads regional funding activity

Yalla Plus has served thousands of entrepreneurs across 11 countries and plans to scale its reach to 100,000 entrepreneurs in 50 countries. (Supplied)
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Updated 25 August 2024
Nour El-Shaeri
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Startup Wrap – Saudi startup ecosystem leads regional funding activity

  • Resal, a Saudi-based e-gifting platform, has successfully raised $9 million in a series A round to fuel its growth
Updated 25 August 2024
Nour El-Shaeri

RIYADH: Saudi Arabia’s startup ecosystem continues to see robust growth, with a diverse range of sectors attracting significant investment. 

Companies across food technology, fintech, and loyalty platforms have secured funding to accelerate their expansion, both domestically and internationally. 

Resal, a Saudi-based e-gifting platform, has successfully raised $9 million in a series A round to fuel its growth. 

The round was backed by prominent investors, including Derayah Ventures Fund, Al-Wafrah AlThanya Investment Co., and Venture Souq FinTech Fund, as well as ADDiriyah Asset Management, Nomad Holdings, Bugshan Investment Group, and several family offices, alongside angel investors. 

Founded in 2016 by Fouad Al-Farhan and Hatem Kameli, Resal provides digital solutions designed to connect merchants, companies, and individuals through a unified platform. 

The company offers services that facilitate the management and exchange of loyalty points, prepaid cards, and vouchers across various sources. 

The latest funding will be used to accelerate Resal’s business expansion within Saudi Arabia. 

“Our success in securing these investments is a significant testament to the investors and partners’ belief in Resal’s role and its team’s efforts in developing an effective digital ecosystem that contributes to providing innovative solutions in loyalty programs, digital rewards, and alternative payments, in alignment with Saudi Arabia’s Vision 2030,” Kameli, the company’s CEO, said. 

He further claimed that the company recently doubled its sales growth and has increased the number of beneficiaries to more than 1.5 million users and over 1,000 entities and organizations across more than 15 sectors.  

Saudi Arabia’s Yalla Plus secures $2.7m seed funding for POS innovation 

Yalla Plus, a Saudi food tech startup, has closed a $2.7 million seed investment round led by Merak Capital. 

The round also saw participation from Khwarizmi Ventures, Isometry Capital, and a mix of regional and international angel investors. 

Established in 2022 by Abdullah Al-Rabeh and Bader Al-Nasser, Yalla Plus provides an integrated point-of-sale system that encompasses payment management, customer feedback processing, and delivery solutions. 

The company has reportedly served thousands of entrepreneurs across 11 countries and plans to scale its reach to 100,000 entrepreneurs in 50 countries, spanning the Middle East, Europe, and Southeast Asia. 

Mithu raises $500k pre-seed to aggregate loyalty programs 

Saudi-based Mithu, a loyalty platform aggregator, has raised $500,000 in a pre-seed funding round led by Web3 venture builder Adaverse. 

Founded in early 2024 by Mohsin Qureshi and Asif Ali, Mithu aims to streamline loyalty programs by consolidating them into a single, gamified app. 

It is designed to boost customer engagement, particularly in the food and beverage sector. 

Mithu claims to have already secured agreements with around 200 restaurants in Riyadh. The company’s gamification strategy is positioned to help businesses increase customer retention through enhanced loyalty interactions. 

Asas secures $320k for AI-driven developer-sharing platform 

Saudi Arabia’s Asas Specialized Information Technology has raised $320,000 in a pre-seed round for its flagship product, Resquad AI. 

The round was backed by angel investors, and the investment will be used to expand the company’s operations within the Kingdom. 

Founded by Abdullah Abdulaziz Al-Jafaari in 2024, Resquad AI facilitates flexible collaboration among software development firms by allowing them to share developers with other companies or external clients. 

Asas plans to enhance its platform and drive growth in the Saudi IT sector with the new capital. 

UAE-based Meteora Developers acquires property crowdfunding platform Maisour 

UAE-based real estate developer Meteora Developers has acquired Emirati property crowdfunding platform Maisour in a multimillion-dollar deal. 

Founded in 2022 by Praveen Sharma, Meteora has developed a diverse real estate portfolio across the UAE. 

Maisour, launched in 2021 by Ahmed Nour, Haytham Assaal, and Sari Safi, offers global investors the opportunity to participate in the UAE’s real estate market through fractional ownership. 

With this acquisition, current and future investors on the Maisour platform will gain access to Meteora’s extensive offerings, further expanding their opportunities in the UAE property sector. 

Falcon Gate Ventures launches $100m Web3 innovation fund 

Singapore-based Gate Ventures, the venture capital arm of Gate.io, and the Blockchain Center in Abu Dhabi have teamed up to launch a $100 million fund to promote Web3 innovation globally. 

Named Falcon Gate Ventures, the fund aims to accelerate the adoption of decentralized technologies and infrastructure. 

It will focus on fostering innovation in regions such as the US, Asia, Europe, and the MENA region, targeting key areas of Web3 development. 

Both Gate Ventures and the Blockchain Center intend to leverage their combined expertise to support emerging talents and advance the digital economy. 

Pakistan’s PostEx raises $7.3m to drive expansion into the GCC 

Pakistan-based fintech startup PostEx has secured $7.3 million in a pre-series A round led by Conjunction Capital, alongside Dash Ventures, Sanabil500, VSQ, FJ Labs, and Zayn VC. 

Founded in 2020 by Muhammad Khan, PostEx offers upfront payments to e-commerce businesses while providing a reliable delivery network. 

Prior to this round, the company had raised $8.6 million from investors such as Global Founder Capital, MSA Capital, and Shorooq Partners. 

The company intends to utilize the fresh capital to expand its services into the Gulf Cooperation Council region, further bolstering its fintech and logistics solutions. 

Egypt’s NoorNation secures investment from KBW Ventures for clean energy solutions 

Egypt-based climate tech startup NoorNation has received an undisclosed investment from KBW Ventures, founded by Saudi Prince Khaled bin Al-Waleed. 

NoorNation, which was launched in 2021 by Ragy Ramadan and Mohamed Khaled, focuses on delivering decentralized energy and water infrastructure to off-grid areas across Egypt and Sub-Saharan Africa. 

NoorNation’s flagship product, LifeBox, provides clean energy and safe water to rural communities, farms, and tourism businesses at affordable prices. 

The company has gained recognition for its work, including being named Best Green Tech Startup of the Year in Northern Africa by the Global Startup Awards 2024. This marks KBW Ventures’ first investment in Egypt’s startup ecosystem. 

UAE fintech Yuze raises $30m for SME financial inclusion 

UAE-based fintech startup Yuze has raised $30 million in a funding round led by Osten Investments. 

Founded in 2022 by Rabih Sfeir, Yuze offers business accounts tailored to startups, micro, and small enterprises, with a focus on financial inclusion in emerging markets. 

The company plans to utilize the funds to expand into new markets and aims to reach one million small and medium-sized enterprise and professional customers within the next five years. 

Yuze’s expansion strategy is intended to bridge the financial inclusion gap for underserved businesses across various regions.

Topics: Start-up of the Week Resal Yalla Plus

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ROSHN launches first residential community in Makkah

Updated 26 December 2024
MOHAMMED AL-KINANI
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ROSHN launches first residential community in Makkah

Updated 26 December 2024
MOHAMMED AL-KINANI

JEDDAH: Saudi Arabia’s leading property developer, ROSHN, has officially launched its first residential community in Makkah, marking a significant milestone in the company’s efforts to improve the city’s living standards while supporting the national development goals outlined in Vision 2030.

The launch event for the Al-Manar Community project, which is ROSHN’s inaugural residential development in Makkah, took place under the patronage of Makkah Gov. Prince Khaled Al-Faisal. The groundbreaking ceremony was attended by a host of prominent figures, including Makkah Mayor Musaed bin Abdulaziz Al-Dawood, Royal Commission for Makkah and Holy Sites CEO Saleh bin Ibrahim Al-Rasheed, Real Estate General Authority CEO Abdullah Al-Hammad, and ROSHN’s acting CEO Khaled Jawhar. The event also saw participation from officials across both the public and private sectors.

Strategically positioned, the Al-Manar community is just a 20-minute drive from the Grand Mosque, less than an hour from King Abdulaziz International Airport in Jeddah, and only two minutes from Makkah’s western gateway. The development’s design thoughtfully integrates the region’s rich cultural and architectural heritage, blending modernity with tradition.

The Saudi government, under Vision 2030, has set ambitious targets to boost homeownership among citizens, aiming for 70 percent by the end of the decade.

ROSHN is playing a pivotal role in achieving this goal by developing large-scale residential projects that offer high-quality and affordable housing options for Saudi citizens. These initiatives are in line with the government’s strategy to expand the housing sector, elevate living standards, and provide homes for the country’s growing population.

At the ceremony, attendees were given a tour of model villas and previewed the diverse residential designs available within the community. The Al-Manar development will feature a variety of villas alongside essential amenities such as schools, mosques, shopping centers, healthcare facilities, open spaces, and recreational areas.

Khaled Jawhar, acting CEO of ROSHN, explained that the project spans over 21 million sq. meters and will provide more than 33,000 housing units. Additionally, it will offer more than 150 facilities designed to meet the needs of residents and support community well-being.

Saleh bin Ibrahim Al-Rasheed, CEO of the Royal Commission for Makkah and Holy Sites, emphasized the significance of the Al-Manar community as the first fully integrated ROSHN development in Makkah.

“Located at the city’s western gateway, within the Haram boundaries, this project reflects our commitment to facilitating impactful developments that drive long-term growth and sustainability,” Al-Rasheed said.

Topics: gigaproject ROSHN

Saudi Venture Capital Invests $24bn in Jadwa GCC Private Equity Fund 1

Updated 26 December 2024
Arab News
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Saudi Venture Capital Invests $24bn in Jadwa GCC Private Equity Fund 1

Updated 26 December 2024
Arab News

RIYADH: Saudi Venture Capital has invested over SR90 billion ($24 billion) in the Jadwa GCC Private Equity Fund 1.

The fund aims to raise SR1.5 billion, with a hard cap of SR2 billion, and marks Jadwa’s first regional blind-pool private equity fund, a press release issued on Thursday said.

It said the fund will focus on investing in a diversified portfolio of high-potential private equity opportunities across Saudi Arabia and the wider Gulf Cooperation Council region.

Commenting on the development, Nabeel Koshak, CEO and board member of SVC, said:

“Our investment in the private equity fund by Jadwa is aligned with SVC’s strategy of supporting the evolving private equity ecosystem in Saudi Arabia. This investment will stimulate and sustain funding for high-potential companies in Saudi Arabia, contributing to the economic diversification objectives of Saudi Vision 2030.”

Founded in 2018, SVC is a subsidiary of the SME Bank, part of the National Development Fund. Its mission is to stimulate and sustain financing for startups and small and medium enterprises at various stages—from pre-seed to pre-IPO—through investments in funds as well as direct investments into emerging companies.

Tariq Al-Sudairy, managing director and CEO of Jadwa Investment, added: “We are excited to have SVC on board as an investor in Jadwa GCC Private Equity Fund 1. This partnership reflects our shared commitment to identifying and nurturing high-potential companies across the GCC, with the goal of creating long-term value for our clients.”

Jadwa Investment is a leading investment management and advisory firm in the MENA region.

Topics: Jadwa SVC Investment

Closing Bell: Saudi main index slips to close at 11,859

Updated 26 December 2024
Reem Walid
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Closing Bell: Saudi main index slips to close at 11,859

  • Parallel market Nomu declined by 120.35 points, or 0.39%, to close at 30,886.71
  • MSCI Tadawul Index also dropped 3.44 points, or 0.23%, to end at 1,490.30
Updated 26 December 2024
Reem Walid

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Thursday, losing 32.85 points, or 0.28 percent, to close at 11,859.47.

The total trading turnover of the benchmark index reached SR2.80 billion ($747 million), as 78 stocks advanced and 143 retreated.

The Kingdom’s parallel market Nomu declined by 120.35 points, or 0.39 percent, to close at 30,886.71, with 37 stocks advancing and 38 retreating.

The MSCI Tadawul Index also dropped 3.44 points, or 0.23 percent, to end at 1,490.30.

The best-performing stock of the day was Rasan Information Technology Co., whose share price surged 7.58 percent to SR79.50. Other top performers included The Mediterranean and Gulf Insurance and Reinsurance Co., which rose by 7.17 percent to SR24.80, and The National Co. for Glass Industries, up 4.15 percent to SR55.20.

On the downside, Saudi Research and Media Group recorded the steepest drop, falling 3.86 percent to SR269.00. Al-Baha Investment and Development Co. saw its share price decline by 3.85 percent to SR0.50, while Red Sea International Co. dropped 3.63 percent to SR58.40.

On the announcement front, Mutakamela Insurance Co. launched its new identity and brand name, Mutakamela, following regulatory approvals and shareholder consent at its extraordinary general assembly meeting. 

Mutakamela ended the session unchanged at SR14.78.

Al-Yamamah Steel Industries Co. reported a net profit of SR70.8 million for the year ending Sept. 30, a significant turnaround from the SR130.14 million loss recorded in the previous year. The profit increase was attributed to reduced costs in the construction sector by 20.82 percent, electricity by 7.56 percent, and solar energy by 10.35 percent.

Additionally, the company’s board recommended distributing SR25.4 million in cash dividends to shareholders for the fiscal year ending Sept. 30. Eligible shareholders will receive a dividend of SR0.50 per share, representing 5 percent of the share’s par value, with 50.8 million shares eligible for the payout. 

Al-Yamamah Steel closed the session at SR35.00, down 1.75 percent.

Arabian Contracting Services Co. secured a project worth SR563 million with the Royal Commission for Riyadh City to invest in and lease internal advertising spaces within the King Abdulaziz Public Transport Project in Riyadh. 

The 10-year agreement aligns with the company’s strategy to expand its advertising activities. 

Its stock rose 0.68 percent to close at SR149.00.

Bank Al-Jazira announced the start of issuing its Additional Tier 1 Sukuk under a SR5 billion program through private placement. The issuance amount and terms will be determined based on market conditions, with a minimum subscription of SR1 million. 

The sukuk offer price, par value, and return will also be market-dependent. The bank has appointed Al-Jazira Capital, Al-Rajhi Capital, and HSBC Saudi Arabia as joint lead managers and dealers.

Bank Al-Jazira’s stock rose 0.96 percent to close at SR18.68.

Topics: TASI Tadawul Stock Market shares

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Turkiye lowers interest rate to 47.5%

Updated 26 December 2024
AFP
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Turkiye lowers interest rate to 47.5%

  • Central bank now expects inflation to reach 44% at the end of 2024
  • Decision signals the start of an easing cycle after eight months of steady policy
Updated 26 December 2024
AFP

ISTANBUL: Turkiye’s central bank lowered its key interest rate on Thursday, the first cut in nearly two years as it battles with double-digit inflation.
The bank’s monetary policy committee decided to reduce the policy rate from 50 percent to 47.5 percent, with a statement citing improvement in “inflation expectations and pricing behavior.”
The last cut was in February 2023.
The central bank began to raise interest rates last year to battle soaring prices, after President Recep Tayyip Erdogan dropped his opposition to orthodox monetary policy.
It has kept the main rate stable at 50 percent since March.
Thursday’s decision signals the start of an easing cycle after eight months of steady policy.
The bank said the decisiveness over its tight monetary stance “is bringing down the underlying trend of monthly inflation and strengthening the disinflation process.”
In November, Turkiye’s annual inflation rate slowed for the sixth month in a row, at 47.1 percent.
The central bank now expects inflation to reach 44 percent at the end of 2024, up from a previous estimate in August of 38 percent.
The bank said the level of the policy rate would be determined in a way to ensure the tightness required by the projected disinflation path, taking into account both realized and expected inflation.
This week, the central bank announced that it would hold fewer policy meetings next year.
“The Committee will make its decisions prudently on a meeting-by-meeting basis with a focus on the inflation outlook,” the bank said, adding it would “decisively use all the tools at its disposal in line with its main objective of price stability.”
The bank “will make its decisions in a predictable, data-driven and transparent framework,” it added.
Hakan Kara, former chief economist at the central bank, welcomed the cut as “very reasonable and balanced start” that came with a “cautious/optimistic communication.”
“In my opinion, the central bank is doing its best. From now on, the ball is in other policies,” Kara commented on social media platform X, including in the pace of spending and regulations on critical institutions.
The rate slash comes amid a moderate increase in Turkiye’s minimum wage after several rounds of negotiations.
The net monthly minimum wage has been raised by 30 percent to 22,104 lira ($600), beginning from Jan. 1 — far below the demands of the workers union.
The union had demanded a 70 percent increase.
Erdogan welcomed the rise this week and said: “We once again remained true to our promise not to let our workers be crushed by inflation.”

Topics: Turkiye Turkish Central Bank Inflation

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Saudi Arabia’s JEDCO, Tarshid partner to boost energy efficiency at King Abdulaziz Int’l Airport

Updated 26 December 2024
MOHAMMED AL-KINANI
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Saudi Arabia’s JEDCO, Tarshid partner to boost energy efficiency at King Abdulaziz Int’l Airport

  • Tarshid will conduct on-site surveys and technical studies of KAIA’s targeted buildings and facilities
  • Project aims to encourage the aviation industry to adopt sustainable practices
Updated 26 December 2024
MOHAMMED AL-KINANI

JEDDAH: Saudi Arabia’s King Abdulaziz International Airport is set to enhance energy efficiency and reduce emissions through a strategic partnership with the country’s National Energy Services Co., or Tarshid.

The pact between Jeddah Airports Co., or JEDCO, the airport’s operating company, and Tarshid, a Public Investment Fund company, aims to deliver sustainable energy efficiency solutions for the airport’s facilities. The partnership is facilitated through a Tarshid subsidiary and aligns with the Kingdom’s Vision 2030 and the Saudi Green Initiative.

The agreement was signed in the presence of Prince Abdulaziz bin Salman, minister of energy and chairman of Tarshid’s board of directors, according to the Saudi Press Agency.

The deal, which aims to launch innovative energy-saving initiatives and promote environmental responsibility, supports Saudi Arabia’s Civil Aviation Environmental Sustainability Program and contributes to achieving the goals of the Saudi Green Initiative and Vision 2030, which seek to improve energy efficiency and implement sustainable solutions across public and private sector facilities in the Kingdom.

The Kingdom has been developing the Civil Aviation Environmental Sustainability Plan, which seeks to mitigate the environmental impact associated with the expected growth of the country’s civil aviation sector.

The plan is crafted to align with global commitments outlined in the Paris Climate Agreement and the emission reduction targets set by the International Civil Aviation Organization.

The country has made several national-level achievements over the past years in the pursuit of its net-zero emissions goal, set for 2060. It is also pursuing new technologies to improve fuel efficiency and decarbonize the aviation sector.

Ranked among the top 100 airports globally, KAIA holds the distinction of being the third-best airport in the Middle East, according to rankings by UK-based consulting firm Skytrax.

Under the agreement, Tarshid will conduct on-site surveys and technical studies of KAIA’s targeted buildings and facilities, recommending optimal solutions to enhance energy efficiency and reduce consumption within the project’s scope.

Waled Abdullah Al-Ghreri, CEO of Tarshid and board member, said that they are dedicated to realizing Vision 2030’s objectives of enhancing energy efficiency and sustainability in Saudi Arabia.

“Tarshid continues to strengthen its partnerships with both public and private sectors, and our collaboration with Jeddah Airports Co. is a pivotal step toward establishing new energy efficiency benchmarks in the aviation sector, reflecting a future that merges operational excellence with environmental responsibility.”

Mazen bin Mohammed Johar, CEO of JEDCO, expressed his enthusiasm for the collaboration, saying that the agreement is a significant step in advancing the company’s efforts to enhance the operational efficiency of airport facilities.

Johar added that the agreement aligns with the National Aviation Strategy’s goal of operating a world-class, sustainable airport with high energy efficiency standards, consistent with Vision 2030.

He highlighted KAIA’s achievements in environmental preservation, including sustainability projects such as a recycling initiative that reduces carbon emissions and achieves net-zero targets, electricity and water conservation projects utilizing solar panels and smart technologies, and air quality monitoring in collaboration with the National Center for Environmental Compliance.

He said that the airport has increased green spaces to mitigate carbon emissions.

Established in 2017, Tarshid specializes in retrofitting buildings and facilities to improve energy efficiency and sustainability across government and private sectors. The KAIA project is among its key initiatives with the private sector, aiming to encourage the aviation industry to adopt sustainable practices.

By the end of the third quarter of this year, the company had achieved annual energy savings of 7.3 terawatt-hours across various projects, equivalent to conserving over 11.7 million barrels of oil equivalent and avoiding approximately 4.2 million metric tonnes of harmful emissions. These efforts equate to the environmental impact of planting more than 69.4 million seedlings annually, SPA reported.

Tarshid has recently signed a similar agreement with SAL Logistics Services, underscoring its role in advancing energy efficiency and sustainability across both governmental and private sectors. 

Topics: Jeddah Airports Co. King Abdulaziz International Airport (KAIA) Tarshid

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