Dealmaking in the Middle East during the week-ended Friday was led by early-stage funding in key startups in the UAE and Saudi Arabia. While cleantech mobility startup Wize and fintech player Mafhoom raised initial capital, proptech player Ajras and cybersecurity firm Cognaa secured seed funding.
Besides, Saudi buy-now-pay-later (BNPL) startup Tamara managed an additional $250 million debt funding from Goldman Sachs and venture capital firm Shorooq Partners, to facilitate expansion.
In October, Middle East and North Africa (MENA) startups recorded a 333% month-on-month growth in funding to $156 million, following four months of decline, according to a report. Yet, it is a 76% decline compared to the corresponding period last year, as per Wamda.
Between January and October, the MENA region’s total funding touched $1.9 billion, which is a 36.6% decline from $3 billion recorded during the same period last year.
Meanwhile, SC Ventures, the investment arm of Standard Chartered partnered with Japan-based SBI Holdings to set up a digital asset investment firm in the UAE. The $100 million investment vehicle will deploy capital in digital assets companies including market infrastructure, risk and compliance tools, DeFi, tokenisation, consumer payments and the metaverse.
Wize
Dubai-based sustainable transportation solutions startup Wize raised $16 million in a pre-seed funding, round led by angel investors to support growth. Founded in 2022 by Alexander Lemzakov, Wize provides eco-friendly last-mile transportation solutions.
It offers a slew of services including a marketplace for electric motorcycles, Wize rental and subscription platform for business owners to manage their own fleets, battery-as-a-service, and swapping stations as well as software components. The entity aims to use the funds to expand its presence in the UAE and further develop the product and forge tie ups in the Middle East and North Africa (MENA) market.
Mafhoom
UAE-based fintech startup Mafhoom Technologies raised $1.4 million in pre-seed funding, led by Al-Wafra Al-Thanya for investments to expand into Saudi Arabia.
Other angel investors also participated in the round. Established in 2022 by Ahmad Khatib and Ziad Melhem, Mafhoom is an AI-powered, intelligent personal finance app that allows users to optimise their spending behaviour, reduce bills, eliminate debt, enhance financial literacy and achieve savings and investment objectives. The funding will also help Mafhoom expand its team size.
Tamara
Saudi buy-now-pay-later (BNPL) startup Tamara secured additional $250 million debt funding from Goldman Sachs and venture capital firm Shorooq Partners to facilitate expansion.
It includes $200 million of senior debt from Goldman Sachs and a $50 million mezzanine tranche, led by Shorooq Partners. This is in addition to the $150 million debt it received from Goldman Sachs in March, taking the total warehouse facility, a short-term funding arrangement, to $400 million.
Tamara, launched in 2020, is one of the largest BNPL providers in the region and has a customer base of over six million across Saudi Arabia, and the six-member Gulf Cooperation Council, including the UAE, Kuwait, and Bahrain.
Founded by Abdulmajeed Alsukhan, Turki Bin Zarah and Abdulmohsen Albabtain, Tamara had raised $100 million in Series B in August last year from investors including Sanabil Investments, Coatue, Shorooq Partners, Endeavor Catalyst and Checkout.com. Its key competitors are UAE-based Tabby and Postpay.
Tamara has over 500 employees and operates out of its headquarters in Riyadh, Saudi Arabia, and has offices in the UAE, Egypt, Germany, and Vietnam.
Lynk
Fintech startup Lynk that connects financial institutions, commodity markets and beneficiaries through its Shariah-compliant services, raised an undisclosed amount from Al Fozan Holding and Ramla Holding Group.
Founded in 2023 by Thabet Alsubaie in Saudi Arabia, Lynk plans to introduce additional fintech products that cater to financial institutions, to promote overall growth and development of the financial services sector and broaden its presence locally and internationally.
Cognaa
Cognaa, a Saudi Arabia-based cyberthreat detection and response platform raised $2.3 million in seed funding led by Impact46, with participation from Vision Ventures, Faith Capital and other investors.
The cybersecurity startup was founded in 2022 by Ibrahim Alshamrani and Ziyad Alshehri. It utilises AI and advanced data analysis to detect threats in customers' systems and networks. It participated in the inaugural Cybersecurity Accelerator Programme, launched by the National Cybersecurity Authority in August last year.
Ajras
Proptech startup, Ajras, which offers flexible payment solutions for landlords and tenants raised $28 million in seed funding, led by Madarek International in a mix of debt and equity capital.
Founded in 2022 by Muath Aljubailan, Abdullah Al Qarni, Ahmed Al Tamimi, Suleiman Aljarbou, and Suhail Al Tamimi, the startup mainly caters to retail businesses, allowing them to pay their annual rent in installments to facilitate better cash flow management. The startup aims to use the funds to enhance its product offering.
