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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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IMF board to discuss Pakistan’s $7 bln bailout on Sept 25 as PM hails friendly states for support

Updated 12 September 2024
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IMF board to discuss Pakistan’s $7 bln bailout on Sept 25 as PM hails friendly states for support

  • The South Asian country reached a staff-level agreement with the global lender in July, but approval for the 37-month program has been pending since then
  • Pakistan’s last $3 billion IMF program helped avert a sovereign default last year, amid a decline in foreign exchange reserves and local currency devaluation
Updated 12 September 2024
Hasaan Ali Khan

ISLAMABAD: The International Monetary Fund (IMF) executive board will meet on September 25 to discuss a $7 billion program agreed with Pakistan this year, an IMF spokesperson said on Thursday, as Prime Minister Shehbaz Sharif appreciated “friendly” countries for their support in meeting the lender’s requirements.

The South Asian country reached a staff-level agreement with the global lender in July, but the IMF board’s approval for the 37-month program has been pending since then.

Pakistan’s last $3 billion IMF program helped avert a sovereign default last year, amid a decline in foreign exchange reserves to critical levels, currency devaluation and record inflation.

“The board meeting is scheduled to take place on September 25 and this is following Pakistan obtaining necessary financing assurances from its development partners,” IMF spokesperson Julie Kozack said in a press briefing.

The development came hours after Prime Minister Shehbaz Sharif appreciated “friendly” countries for helping Pakistan meet requirements necessary to secure the IMF bailout.

“I’d like to say that our friendly and brotherly countries have supported us and have come all the way,” Sharif said on Thursday, while addressing a federal cabinet meeting.

The premier avoided delving into details and said the incumbent government was focusing on the commitments made with the IMF.

“For now, it would be fine to say that the finance minister, other government institutions and our ambassador in China have worked hard together for this,” he said.

Islamabad has for years relied on China, Saudi Arabia and the United Arab Emirates for financial assistance to meet external financing requirements and avoid sovereign default, which it came close to last summer.

Pakistan’s sovereign dollar bonds rallied on Thursday afternoon, with the 2031 maturity trading 1 cent higher to bid at 79.93 cents on the dollar, according to Tradeweb data.

Sharif said Pakistan’s economy would greatly benefit if the monetary policy rate also reached single digits like the inflation rate, highlighting that the dialogue with the IMF was moving ahead in a “good manner.”

PM Sharif said Pakistan will take decisions regarding the growth rate once the program is finalized.

Pakistan has been struggling with boom-and-bust cycles for decades, leading to 22 IMF bailouts since 1958. The latest economic crisis has been the most prolonged and has seen the highest-ever levels of inflation, pushing the country to the brink of a sovereign default last summer before an IMF bailout.

The conditions of the fresh IMF bailout have become tougher such as higher taxes on farm incomes and electricity prices. The bailout is aimed at cementing stability and inclusive growth in the crisis-plagued South Asian country.

Topics: Pakistan IMF Pakistan IMF Ties

Closing Bell: Saudi main index ends higher at 11,842.55

Updated 12 September 2024
NADIN HASSAN  
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Closing Bell: Saudi main index ends higher at 11,842.55

  • Parallel market Nomu increased by 170.05 points, or 0.66%, closing at 25,934.60
  • MSCI Tadawul Index climbed, adding 8.32 points, or 0.57%, to end at 1,471.48
Updated 12 September 2024
NADIN HASSAN  

RIYADH: Saudi Arabia’s Tadawul All Share Index reversed this week’s trend, rising by 76.15 points, or 0.65 percent, to close at 11,842.55 on Thursday. 

Total trading turnover reached SR6.49 billion ($1.72 billion), with 154 stocks advancing and 72 declining. 

The Kingdom’s parallel market Nomu increased by 170.05 points, or 0.66 percent, closing at 25,934.60. The session saw 43 stocks advance and 25 decline. 

The MSCI Tadawul Index also climbed, adding 8.32 points, or 0.57 percent, to end at 1,471.48. 

Top performer Rasan Information Technology Co. saw its share price jump 6.90 percent to SR57.30. Nayifat Finance Co. and Zamil Industrial Investment Co. also performed well, with share price increases of 5.66 percent and 5.43 percent, respectively. 

Al-Baha Investment and Development Co. was the worst performer, with its share price falling 5.26 percent to SR0.18. 

Saudi Fisheries Co. and Jamjoom Pharmaceuticals Factory Co. also faced declines of 3.68 percent and 3.58 percent, reaching SR23.06 and SR183.20, respectively.

In Nomu, ASG Plastic Factory Co. led with an 8.51 percent rise, closing at SR51.00. Alhasoob Co. and Alqemam for Computer Systems Co. also saw gains, with share prices up 8.17 percent and 7.10 percent, respectively. 

The worst performer in Nomu was the Arabian Food and Dairy Factories Co., with a 3.61 percent drop to SR72. 

Edarat Communication and Information Technology Co. and Osool and Bakheet Investment Co. also fell by 3.46 percent and 3.12 percent, respectively. 

On the announcement front, Rabigh Refining and Petrochemical Co. reported a reduction in its accumulated losses to 36.16 percent of its SR16,710 million share capital by Aug. 31, down from 53.09 percent as of June 30. This equates to SR6.04 billion. 

The decrease was achieved by waiving SR1.88 billion each in loans by the founding shareholders, the Saudi Arabian Oil Co. and Sumitomo Chemical Co. Ltd., and the associated accrued commissions. 

Saudi Industrial Development Co. announced that its subsidiary, Global Marketing Co. for Sleeping System, known as Sleep High, plans to issue Murabaha sukuk valued at SR10 million. 

In a statement to Tadawul, the company announced that the sukuk will be available for purchase via Sukuk Capital’s website. Sukuk Capital is authorized by the Capital Market Authority to issue and invest in debt instruments. 

Topics: Saudi Arabia Saudi Stock Exchange (Tadawul) Closing Bell TASI Tadawul All Share Index (TASI) MSCI Tadawul Index TASI Nomu Finance Tadawul

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Bloom Consulting opens its first Middle East office in Saudi Arabia

Updated 12 September 2024
MOHAMMED AL-KINANI
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Bloom Consulting opens its first Middle East office in Saudi Arabia

  • Move aims to create branding strategies that drive economic progression and enhance global competitiveness
  • Regional headquarters initiative has seen over 120 companies set up their Middle East bases in Riyadh this year
Updated 12 September 2024
MOHAMMED AL-KINANI

JEDDAH: Madrid-based Bloom Consulting has opened its first Middle East office in Saudi Arabia, partnering with Destination Consultancy to help cities and regions improve economic growth. 

In a statement, the company said that the move aims to assist in creating branding strategies that drive economic progression and enhance global competitiveness.

Bloom Consulting collaborates with global partners, amassing extensive experience in nation and place branding as well as placemaking. This includes its 2020 collaboration with the Royal Commission for Riyadh City to develop and implement the Riyadh City Brand strategy.

The office opening is the latest example of a firm establishing a presence in the Kingdom, following the regional headquarters initiative which has seen over 120 companies set up their Middle East bases in Saudi Arabia’s capital in 2024.

Bloom Consulting said that with the Kingdom undergoing significant transformation as part of Vision 2030, the need for robust place branding and strategic economic positioning has never been more critical.

Jose Filipe Torres, CEO of Bloom Consulting, stated that their partnership with Destination Consultancy, which exclusively represents their company, marks a significant milestone in their dedication to supporting Saudi Arabia’s economic aspirations.

“We believe that every place has a unique story to tell, and by harnessing that narrative, we can help regions attract investment, boost tourism, and ultimately enhance the quality of life for their residents.”

Iman Hajjed Al-Mutairi, founder and CEO of Destination Consultancy and managing partner at Bloom Consulting, stated: “We are thrilled to exclusively represent Bloom Consulting to bring cutting-edge Place Branding strategies to Saudi Arabia.”

Al-Mutairi, who has served as the executive director of destination branding, marketing, communication, and sales at Soudah Development Co. for nearly three years, emphasized that the economic growth of cities begins with a strong place brand.

“We will work together toward creating a vibrant and sustainable future for our cities and communities,” she said.

Destination Consultancy is a Saudi partner in strategic marketing and communication consulting focused on enhancing the economic viability and attractiveness of places with a commitment to driving impactful change.

In 2022, Brand South Africa chose Bloom Consulting for a project focused on assessing the country’s global reputation and providing strategic advice on brand management, while in the following year the firm worked with Essential Costa Rica to define Vision 2035 for the nation’s brand, incorporating new sustainability dynamics.

Topics: main Bloom Consulting Saudi Arabia regional headquarters

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AI can affect job market positively, say experts at Global AI Summit

Updated 12 September 2024
Khaldon Azhari
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AI can affect job market positively, say experts at Global AI Summit

  • AI’s wealth creation will need equitable distribution, says executive
  • Other experts believe firms will set right ethical ‘guardrails’ around AI
Updated 12 September 2024
Khaldon Azhari

RIYADH: Fears that the adoption of artificial intelligence will result in widespread job losses are overstated and there are likely considerable benefits to be derived from integrating the technology in the workplace, said experts during a panel discussion at the third Global AI Summit in Riyadh on Thursday.

Dr. Richard Benjamins, the co-CEO of RISE.ai, said AI would have an impact but probably in a positive way. “Some jobs will maybe disappear, but a lot of new jobs will be created,” he said.

He said the obvious negative was that some may lose their jobs, but AI could lead to greater productivity and even three- or four-day weekends. An important question was who would benefit.

“The question is, really, the issue of distribution of wealth,” he said. “Clearly, we are on a trend where there are increasing gaps between countries, and the haves and the have-nots.

“And within the countries also, the distribution is going to a few. I think a lot of people are worried about this and this has a huge impact on society.”

Benjamins said that most companies would regulate themselves to ensure their employees are not hurt in any way. However, there was also the possibility that employees would reject AI for fear of how it might affect their livelihoods.

Dr. Heather Doman, IBM’s global leader, responsible AI initiatives, said: “People are generally concerned … But I also want to say that I don’t personally feel that we need to slow down.

“Generally, we have learned, as with other technologies, that we can innovate and set the right guardrails around it, and that is what I believe we’re going to see.”

Benjamins added that AI must be used ethically. “I think AI is all about creating value and increasing productivity, but sometimes, even though the intention is positive and the use is legitimate, there might be, let’s say, negative, unintended consequences.

“If you speak about ethical AI, it’s to make sure that those unintended negative consequences are mitigated or prevented. And that requires what we call a methodology for responsible use of AI.”

He said that inaccuracies in AI could have varying consequences. If a social media algorithm is 1 percent inaccurate, it was probably not a big problem. But if a manufacturing process or healthcare analysis is 1 percent inaccurate, it could have significant consequences.

Simon Turner of Sofinnova Digital Medicine said: “I think we should go the way we’re going with healthcare in general … We’ve always had the guiderails, quality assurance, quality management, ethics committee approval, you know, a lot of work that’s been done in this space.

“AI is yet another tool, but not important. We’re just adding the same approach we’ve been using for years, which is always thinking first about the patient. So for us, it doesn’t really change much.”

• The article originally appeared on Arab News Japan

Topics: GAIN 2024 Global AI Summit AI

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AI could out-think humans in 10 years, expert tells Riyadh summit

Updated 12 September 2024
Khaldon Azhari
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AI could out-think humans in 10 years, expert tells Riyadh summit

Updated 12 September 2024
Khaldon Azhari

RIYADH: Artificial intelligence experts have delivered their visions for the future of the technology at the 3rd Global AI Summit in Riyadh.

With AI already evolving at breakneck speed, one expert said that humans could take a back seat to the technology in just 10 years’ time.

Simon Turner, a partner at Sofinnova Digital Medicine, said: “In 10 years, I think we will have something that looks like what we’re talking about in terms of artificial general intelligence.

“So, I think we will have models that are more sophisticated, more intelligent than humans on basically any topic. I think that will be a very powerful and good thing, and I don’t think that it will be dangerous.”

Turner’s hope is that AI will be able create models that automate menial business tasks, freeing up employees’ time and producing value.

However, Dr. Richard Benjamins, the co-CEO of RISE.ai, said that artificial general intelligence may not be the key to the technology’s evolution.

“In 10 years, I believe that we will not have artificial general intelligence, so not general intelligence, but we will have much better problem solving,” he said.

“So, it’s not about emotions, about fear or power or what the AI wants or its intentions; it’s about solving hard problems, which we will use for business, and I think mostly in the context of the co-pilot concept. So, humans in the driving seat.”

But the danger, Benjamins added, is that human brain power may deteriorate as AI takes on all the hard work. Who remembers phone numbers anymore, he asked, when your mobile phone takes care of all the memory.

“I predict one of the jobs in the future will be to run a fitness center for your brain, because we don’t have to think anymore, we don’t have to be creative anymore,” Turner said.

“It’s all done by AI. So, I think that’s one of the risks that we hardly are seeing yet. In the future, we need to go to the gym to stay mentally healthy.”

But there is an upside to the evolution of AI, Turner added.

“In research, I think we’ll be making incredible groundbreaking biological discoveries. We’ll probably start getting towards the foundation of biology, understanding how we work, why we are the way we are, why we get diseases, how we potentially prevent them.

“When you go and see your GP, suddenly if some anomaly pops up, they’ll know what to do with you in a much more streamlined fashion.”

• The article originally appeared on Arab News Japan

Topics: GAIN 2024

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