Darwazah Capital

Congratulations to portfolio company MNT-Halan for a transformative 2024! ?? #fintech #growth #financialinclusion

Congratulations to portfolio company MoneyHash for raising a $5.2 million Pre-Series A round! “When merchants or companies launch online, they typically start by partnering with one or two payment processors. But as they grow and expand into new regions, they often need to onboard additional payment partners to meet different customer (and sometimes regulatory) needs, a process that comes with some hurdles. That’s given rise to companies to help manage the process. Egypt’s MoneyHash — which helps merchants across the Middle East and Africa manage complex payment stacks more easily — has raised $5.2 million as it scales to target larger enterprises. The pre-Series A comes around a year after its last funding, when it announced a $4.5 million seed round in February 2024. In total, MoneyHash has raised over $12 million since Nader Abdelrazik and Mustafa Eid launched the Egyptian fintech in early 2021. The area that MoneyHash works in is classically described as “payment orchestration”, and in the fragmented world of payments — where a business might work with dozens of different providers to take, make and bank payments — its star has risen with the growth of online transactions. Integrating multiple payment stacks can be operationally inefficient and technically complex, often taking in-house tech teams weeks to complete. These challenges are even more apparent across Africa and the Middle East due to the various payment methods and currencies. This is where payment orchestration platforms come in by aggregating and simplifying these payment processes across regions via APIs. Abdelrazik and Eid founded MoneyHash after years of working in fintech and enterprise software and witnessing first-hand some of the problems. Put simply, payments are (perhaps obviously) the crux of how a business operates, grows and makes a profit. But too often there were instead costly and risky bottleneck, especially for smaller merchants: payment failure rates in the region are three times the global average and cart abandonment is over 20% higher than in developed markets. They saw orchestration as the solution: by their thinking, merchants without payment orchestration platforms are at the mercy of high operational costs, revenue leakage and will find it hard to scale across regions. “The opportunity to solve this is immense,” said CEO Abdelrazik. “In emerging markets, digital payments represent only a fraction of total transaction volume, suggesting massive growth potential in the coming decade. We’ve built MoneyHash specifically to help merchants overcome these complex challenges and turn payments from a liability into a strategic advantage.” #fintech #MENA #payment #orchestration https://lnkd.in/gY5g2Zy7

Congratulations to portfolio company MNT-Halan for its regional expansion in to the UAE! #fintech #UAE #financialservices #VC

Congratulations to portfolio company Pemo for raising a $7 million Pre-Series A round by Augmentum Fintech and Shorooq! Pemo, a UAE-headquartered spend management platform that caters specifically to small and medium enterprises (SMEs) across the MENAP region, has raised US$7 million in a Pre-Series A funding round led by Augmentum Fintech, a UK-based fintech-focused venture capital (VC) firm, and Shorooq, a UAE-based multi-dimensional investment firm. Launched in May 2022 by Ayham Gorani, Alessandro Durì, Saed Ghorani, and Valerie Konde, Pemo has been designed as a one-stop-solution for businesses to efficiently automate expense management operations. To do this, it offers a suite of services including pre-paid corporate cards, invoice payment systems and corporate expense tracking software. "SMEs are all too often worn down by cumbersome, manual processes such as expense management," notes Gorani, who is also the CEO. "There are so many inefficiencies when it comes to expenses: lost receipts, incorrectly logged documents, and lengthy approval processes that can cause major headaches to finance teams who are often already stretched as it is. We provide a great solution with Pemo, as we automate the whole spend management process, right from payment, to expense submission and approval, to account reconciliation. We provide corporate cards that take the hassle away from the process. In doing so, we can provide full visibility and control of employees expenses (including setting limits on spending), meaning that the business has more time to focus on growing the company and less time to spend on inefficient processes that become real 'time drains.'"- Now, this latest funding announcement follows Pemo's completion of AED1.4 billion in annualized transactions. In the same year it was launched, the startup also raised $12 million in a seed round led by Cherry Ventures, a Germany-headquartered VC firm, and the aforementioned Shorooq. Pemo has also clinched an impressive customer base of over 4,000 companies in the UAE alone, including the likes of Movenpick, Conde Nast, Anantara Hotels and Resorts, and L'eto. As such, the Pemo team has felt largely validated and encouraged by these milestones. "Pemo's growth story has been nothing short of remarkable, and in its relatively short lifespan, and I've been proud to help drive its expansion over the last two and a half years," Gorani adds. "As a homegrown UAE startup, we have rapidly established Pemo as a transformative force in the fintech landscape, delivering an all-in-one spend management solution tailored to the unique needs of businesses in the Middle East and beyond.” #fintech #MENA #SMEs #expensemanagement https://lnkd.in/deyna95i

Congratulations Kamal ElSoueni and the Rabbit Mobility team for raising a $1.3 million Seed round, excited to have been on your journey since your Pre-Seed! "Rabbit Mobility?has announced a $1.3 million investment round to fuel rapid growth of its micromobility platform across Egypt and other North African markets. The Egypt-based operator has grown considerably over the past couple of years with over 450,000 users completing over one million rides. This surge in popularity reflects the increasing demand for sustainable and efficient transportation options in the region. In the past month alone, the operator has tripled its fleet availability and witnessed a surge in user adoption. “In Sep 2024, we deployed 450+ new Gen 2 scooters which are locally assembled in Cairo, Giza and Alexandria; the largest three cities in Egypt,” Kamal ElSoueni, Co-founder and CEO of Rabbit Mobility, told Zag Daily. “Our Gen 2 scooters have swappable batteries and have been averaging 29 days of being deployed on the ground with no need to collect them to warehouses. The higher availability has been instantly reflected in a significantly higher number of users opening the app. We’re on track for 4x the number of daily rides.” With the cash injection, Rabbit is now eying a new market. “We’re interested in expanding to other North African markets starting with Morocco,” said ElSoueni. “We believe the Moroccan market is similar to the Egyptian market where cities have high population densities, high traffic congestion and are not exposed to severe weather. Our plan is to deploy our first fleet in Morocco in 2025.” Leading the investment round is VC firm 500 Global and Untapped Global – which is providing smart asset financing to Rabbit. A group of angel investors and experts in sustainable mobility also contributed to the round.? “We believe in Rabbit Mobility’s innovative approach and commitment to sustainable transportation,” said Amal Dokhan, Managing Partner at 500 Global. “We are excited to support their growth and contribute to the development of the micromobility ecosystem in Africa.” Kamal told Zag that Rabbit Mobility is poised to achieve profitability by the end of the year. “In Sep 2024, Rabbit achieved a net profit/loss margin of -5%. Rabbit is on track to achieve its first ever positive bottom line in Oct 2024, while growing our revenues 3x Month on Month from Sep 24 to Oct 24.” #egypt #micromobility #fundraise #VC https://lnkd.in/e7PERFmP

Congratulations Faisal Toukan, Sarah Toukan and the amazing team at portfolio company Ziina ???? for raising a $22 million Series A from Altos Ventures! “In June 2021, Ziina, fresh from completing YC’s first cohort that year and securing a $7.5 million seed, launched its fintech app to 20,000 retail customers, allowing them to send and receive money. Three years later, the Dubai-based startup, which now counts 50,000 retail and business customers byafter expanding its offerings to meet the needs of micro, small, and medium-sized businesses in the UAE, has netted $22 million in Series A funding led by Altos Ventures. Indeed, such sizable follow-on funding despite the global funding slowdown underscores investors’ confidence in the fintech company’s growth — the company claims 34% month-over-month growth in customers for the last year, and says its revenues have increased ten-fold over the same period. Co-founder and CEO Faisal Toukan told TechCrunch that three factors made Ziina particularly exciting to investors. They include the rapidly expanding SME segment in the UAE, its focus on product-led growth, and its recently acquired central bank license. Ziina originated as a peer-to-peer (P2P) payment app for splitting bills, such as for group trips or rent. While the app gained traction with retail customers in the UAE, some who ran businesses sought to use the digital wallet to send and receive payments, too, according to Toukan. In response, Ziina organically expanded its platform into two segments: Ziina Personal for splitting bills among friends and Ziina Business for collecting payments. The first business feature allowed users to send payment links and get paid through Apple Pay, Google Pay, Mastercard and Visa. As demand from businesses increased, Ziina developed more products for them: a payment gateway (checkout) integrated with platforms like WooCommerce and Shopify for online payments, point-of-sale (POS) solutions for in-person payments using QR codes, and payments via social media. In addition to these features, Ziina added CRM functions so businesses can track customer details and interactions. The YC-backed startup continues to offer its P2P service, but it’s clear why most of its product focus is now on small businesses. The startup targets an underserved market of 560,000 SMEs in the UAE, which account for over 94% of all companies and contribute about 60% of the country’s GDP. The Series A round also included participation from Activant Capital, Avenir Growth, FinTech Collective, FJ Labs, Jabbar Internet Group, Middle East Venture Partners (MEVP) and Y Combinator. This brings Ziina’s total venture raised to over $30 million since its inception in 2020.” #fintech #SeriesA #MENA https://lnkd.in/eWsYnKRF

Portfolio company founder Mahmoud Talaat and Mahmoud Abdelfatah chat with Fast Company Middle East about their recent Series A extension round led by existing investors Algebra Ventures and Silicon Badia. “In the last two years, many unprofitable tech startups in the MENA region have cut costs, scaled back, or shut down. The region’s startup ecosystem has encountered significant challenges, marked by a 46% decrease in venture capital funding in the first half of 2024. The ongoing conflict in Gaza and the threat of further escalation have created uncertainty, prompting investors to adopt a cautious approach. The struggle is seen ever more so in Egypt, as the country witnesses a 55% decline in the number of investors in 2023 compared to the previous year. This downturn is mirrored in the number of deals, which halved during the same period. The country has been particularly hard hit by currency devaluation and soaring inflation, leading to dwindling startup funding. While the number of investors has stabilized in 2024, the overall investment landscape remains subdued. The prevailing economic challenges have compelled investors to shift their focus towards smaller deals, with most transactions in 2023 and early 2024 falling below the $1 million mark. In the face of a challenging funding winter, Egypt’s B2B e-commerce marketplace, Cartona, recently secured an $8.1 million Series A extension, culminating in over $20 million raised in Series A financing. The funding round was led by Algebra Ventures, with participation from existing investors such as Silicon Badia. In 2020, Mahmoud Talaat and Mahmoud Abdel-Fattah Moursy co-founded Cartona , a mobile app connecting buyers and sellers, serving over 188,000 retailers in Egypt. So, how did Cartona push investors to invest in it? What sets its business model apart? Talaat says the ability to demonstrate a clear path to profitability and sustainable unit economics, with positive gross margins across the business, has bolstered investor confidence. “Our advice for building investor confidence during a challenging environment is to demonstrate sensible, sustainable cash-flow management and showcase a clear long-term vision and business strategy for the company, highlighting a clear path to profitability and positive unit economics.” According to Talaat, an asset-light business model with a lean cost base and compelling unit economics remains a major competitive differentiator, especially amid an inflationary environment. It also enables them to focus on tech-enabling solutions. “Our business model has allowed for efficient scaling and cost management, enabling us to reach experience levels on par with asset-heavy operating models.” #ecommerce #logistics #MENA #VC #venture

Congratulations to portfolio company Ziina ???? and its founding team Faisal Toukan, Andrew Gold and Sarah Toukan for securing an SVF license from the Central Bank of The UAE! “With the SVF licence, Ziina can provide comprehensive financial services, including business and consumer accounts, peer-to-peer payments, bill pay, external payment link issuance, QR codes for remote point-of-sale transactions, and prepaid card services. Ziina also plans to serve as a principal member of networks such as Visa and Mastercard, offering Banking Identification Number (BIN) sponsorships. These services are designed to support over 557,000 businesses, improving operational efficiency and promoting growth. With SMEs representing 94 per cent of all companies in the UAE and contributing 63.5 per cent to the non-oil gross domestic product (GDP), their role in the economy is vital. Despite their importance, SMEs frequently experience cash flow challenges, primarily due to delayed client payments. Ziina will now look to address these challenges, equipping businesses with the tools necessary to improve operational efficiency and promote growth. “Securing this licence is a monumental step for us, reinforcing our commitment to the highest standards of compliance and security,” explained Faisal Toukan, CEO and co-founder of Ziina. “The UAE’s Central Bank has outlined a bold vision for financial technology, and we are thrilled to work closely with their team to support this vision. “This regulatory approval allows us to expand our services further, strengthening our role as a dedicated financial partner for SMEs – the true backbone of the UAE’s economy – by offering them a fast and secure way to send, receive, and grow their money.” #fintech #regulation #UAE #centralbank

Congratulations to portfolio company MNT-Halan for its acquisition of Turkish fintech Tam Finans! #expansion #growth #acquisition #fintech

Congratulations to Mahmoud Talaat and the team at portfolio company Cartona for raising an $8.1 million Series A extension to fuel growth. “When Egyptian B2B e-commerce platform Cartona last raised money in 2022, global and local investors were eager to invest in African startups solving the supply chain and operational challenges for retailers and suppliers in the fast-moving consumer goods (FMCG) industry. Two years on, investors aren’t as enthused anymore as the business models of such startups, both asset-light and asset-heavy, across the continent have come under pressure, leading to retreats, closures, downsizing and mergers. Yet, Cartona, which is “very close to reaching full EBITDA profitability,” according to founder and CEO Mahmoud Talaat, has managed to raise more money—this time, $8.1 million in a Series A extension ($5.6 million equity and $2.5 million debt) from new and existing investors. Egyptian VC firm Algebra Ventures led the round, which brings Cartona’s total Series A to $20.1 million. Silicon Badia, lead investor from the first Series A tranche, and SANAD Fund for MSME also participated. Camel Ventures and GlobalCorp- on the other hand, provided the debt component. Talaat told TechCrunch that the four-year-old e-commerce platform raised from a significant cash position. “We have double what we raised now in equity,” he said. That capital will be used to grow its market share in Egypt by deepening its operations in FMCG and HORECA (hotel, restaurant and cafe/catering), a vertical it launched over a year ago. In addition, Cartona may be looking to expand into other regional markets, including Saudi Arabia, and to explore other product lines within Egypt, the chief executive added. Cartona first launched as an asset-light B2B platform connecting FMCG suppliers and wholesalers with retailers. A common criticism then was that asset-light models would find it difficult to retain customers and compete against asset-heavy B2B e-commerce platforms, which basically had more control of their tech and supply chain. Asset-light marketplaces, including Cartona and Nigeria’s Omnibiz, have fairly dispelled such notions. Talaat, in an interview with TechCrunch, said Cartona spent its first two years focusing on improving its tech, user experience, and fulfillment rates to the point where it matched the service level of some asset-heavy models, allowing it to raise money in 2022. Afterwards, the B2B e-commerce outfit turned its attention to improving its unit economics in an industry where volumes are high but making each order profitable is often challenging. Achieving progress on that front over the past two years and almost reaching full profitability, especially with the devaluation of the Egyptian pound against the dollar, made Cartona attractive to investors, according to Talaat. #ecommerce #supplychain https://lnkd.in/dvVx8Aw5