Dash Venture Labs: Our Weekly Picks (Issue No. 27)

1. Entrepreneurship/Startups

Egypt’s CIB launches Sustaining SMEs program

Egypt’s Commercial International Bank (CIB) launched its flagship Sustaining SME program at the SMEs Business Solutions Summit. The program targets the integration of ESG principles into Egypt’s SMEs across different sectors as well as the development of innovative sustainable finance products tailored to cater to the needs of SMEs and corporates. The bank also launched its Sustainable Finance facility, a new SME-tailored facility structure seeking to better serve and enable companies to integrate sustainability practices across their operations, primarily focusing on three sectors including renewable energy, water efficiency, as well as pollution prevention, and Control.

Egypt’s aiBANK launches campaign to finance SMEs

Egypt-based aiBANK announced the launch of a campaign titled “’Financing That Moves You 100 Strides Forward’ to raise awareness for its latest financing product. The Bank’s new product aims to provide SMEs with financing facilities of up to EGP 10 million, with repayment periods of up to 5 years, while promptly receiving the necessary approvals in just four days. The campaign also aims to raise awareness of the competitive advantages offered by the Bank through this product, which aims to bridge the financing gap and attract small businesses as new customers.

Hub71, Modus extend Ventures Lab Program

Hub71 and Modus will expand their venture program ‘Ventures Lab’ to include 28 founding teams, which is almost a 65% increase from last year. To date, Hub71 and Modus successfully raised AED 40 million (USD 10.8 million) for founding teams to co-build startups and access capital through Ventures Lab. As part of the program, up to USD 450,000 is allocated to each startup.

Hub71 launches platform to expand capital access to startups from regional family offices

UAE-based Hub71 launched a new platform, Tech Barza, to facilitate access to capital for startups and technology companies from regional family offices. The new platform will target regional family offices for exclusive access to Hub71’s community of almost 200 startups to accelerate deal flow.

2. Technology

Saudi Central Bank launches open banking framework

The Saudi Central Bank (SAMA) issued its open banking framework, a set of legislation, regulatory guidelines and technical standards to enable banks and fintech to provide open banking services in the kingdom. Open banking enables customers of financial institutions to share their financial data securely with a third-party provider, which in turn provides new and innovative financial services and products for customers. This move will encourage more fintech startups to establish in Saudi Arabia.

Honeywell, Saudi Aramco in JV for intelligent operations; creating jobs

Honeywell and Aramco signed a JV deal to provide a set of end-to-end business process automation solutions under the Aramco Namaat Industrial Investments Programme, which would create over 300 jobs within five years. The new JV offerings will leverage Aramco’s Plant.Digital platform (formerly Integrated Manufacturing Operations Management System – iMOMS) as well as Honeywell Connected Enterprise’s technology development and industrial digital solutions implementation experience.

The JV aims to equip industrial companies with the tools, processes and practices they need to run plant operations more effectively and accelerate sustainable digital transformation and operational excellence initiatives. It will emphasise the development, integration, and deployment of Operations Technology (OT) solutions and Digital Transformation consulting.

valU partners with Makadi Heights to launch convenient installment solutions for home maintenance, renovation fees, and furnishing

Egypt-based valU?partnered with Makadi Heights to avail of convenient financing solutions for home maintenance, renovation fees, and furnishing. Through this partnership, Homeowners at Makadi Heights will be able to comfortably cover the costs associated with the maintenance and renovation of their homes through valU’s flexible and accessible payment plans.?The partnership is part of a series of agreements that valU is rolling out with key real estate players to empower homeowners across the nation.

AlUla signs IBM to implement smart city project

The Royal Commission of AlUla and US technology mega-giant IBM signed an agreement to help implement AlUla’s Smart City policy at the Future Investment Initiative (FII6) in Riyadh. Additionally, the Saudi Ministry of Investment (MISA) also signed an agreement with Brazilian tech company Ocellott, aimed at collaborating to develop an innovative propulsion battery system for future projects of electric vehicles at the event. During the event, MISA facilitated nearly a dozen investment agreements across aerospace, biotechnology, education, and other sectors, illustrating sustained confidence in the Kingdom as a world-class investment destination.

Saudi Central Bank gave a license to FinTech Tiqmo to provide an e-wallet service

The Saudi Central Bank (SAMA) announced the licensing of Smart Digital Payment company (Tiqmo), a new payment technology company, to provide E-wallet services. This brings the total number of payment companies licensed by SAMA to 22. This is in addition to 5 companies that were granted in-principle approval. The new company will contribute to the sector’s growth while complying with SAMA’s regulatory requirements in line with the mandate to enhance overall financial stability and support greater opportunities under the Kingdom's Vision 2030.

Bambucorn Bahrain gets CBB crowdfunding operator licence

Bambucorn Bahrain, a Bahrain-grown equity crowdfunding platform, obtained licence from the Central Bank of Bahrain to carry out activities of an Ancillary Service Provider – Crowdfunding Platform Operator. Bambucorn, supported by the Bahrain Economic Development Board (Bahrain EDB), will enable startups, SMEs, and real estate projects to raise equity from both accredited and retail investors. The licence from CBB will effectively enable Bambucorn to raise capital for issuers in Bahrain and those located outside Bahrain.

UAE bank launches biometric payment card with IDEMIA’s IDEX biometrics sensor technology

IDEX Biometrics ASA announced that one of the largest banks in the Middle East has deployed a full-scale biometric payment card launch with the IDEX Biometrics partner IDEMIA, powered by IDEX Biometrics sensor technology. This launch is the first volume deployment of biometric payment cards to consumers in the Middle East, confirming the expected commercial acceleration in 2022, and a market inflection in 2023.

UAE’s Nedaa signed a MoU with Nokia to explore innovative 5G network slicing for smart city and public safety use

Nokia signed a Memorandum of Understanding (MoU) with Nedaa, the security network provider of the Dubai government. The MoU will explore opportunities to upgrade Nedaa’s telecommunications network across Radio Access Networks (RAN) and core by leveraging 5G technology with Nokia’s innovative technologies. 5G network with end-to-end slicing functionality will help Nedaa deliver improved public safety and smart city services to concerned organizations and citizens, as well as lay the foundations for more advanced services such as metaverse.

UAE-based X-ERA acquires Egypt’s B2B marketplace SPEED

UAE-based logistics services provider X-ERA acquired Egypt’s B2B marketplace SPEED, as part of its international expansion strategy. The value of the acquisition remains undisclosed. SPEED connects FMCG suppliers with small to medium-sized merchants and retailers, with plans to introduce B2C services as well on its platform. SPEED has signed up over 35,000 merchants, and is planning to target a total of 100,000 by mid-2023.

Saudi Arabia’s Paytabs acquires Digital Pay

Saudi Arabia-based FinTech PayTabs, will fully acquire compatriot point of sale (POS) provider Digital Pay, for an unknown amount. Under the acquisition, Digital Pay will serve as PayTabs’ flagship POS terminal product for e-commerce and physical stores, which allows PayTabs to complete its foray into both online and offline payment capabilities.

Digital payments surge 34% to USD 8.5 billion in Bahrain

According to a new report released by the Bahrain Central Bank, the volume of POS transactions across the kingdom grew by 49.8% to 125.5 million in 2021. The total value of such payments amounted to BHD 3.2 billion (USD 8.5 billion) during the same period, posting a yearly growth of 34.6%. Out of the total POS transactions, 65.6% were contactless payments. In terms of value, contactless payments accounted for 39.8% of the POS transactions.

3. Funding Activity?

Egypt’s Money Fellows raises USD 31 million in the first close of Series B

Egypt-based fintech Money Fellows closed its Series B round with a USD 31 million investment led by CommerzVentures, MEVP, and Arzan Venture Capital, as well as Invenfin, National Investment Company (NIC), Existing investors Partech, Sawari Ventures, 4DX and P1Ventures also invested in the round. The round will allow Money Fellows to accelerate its growth, and expand its product offerings across the B2C and B2B segments, as well as fuel its geographical expansion across Africa and Asia.

UAE’s invygo raises USD 10 million Series A round

UAE-based car subscription platform invygo raised USD 10 million Series A round led by MEVP, with participation from Al Rajhi Partners, AB Ventures and Amana Capital, Palm Drive Capital, and existing global investors Signal Peak Ventures and Knollwood Investment Advisory. invygo will use the funding to invest in its technology, deepen its presence in its key markets, KSA and UAE, and expand to new regional markets that have low vehicle penetration rates. Through this funding, the company’s total funding reached over USD 14.3 million.

Saudi Venture Capital invests USD 10 million in Afiyah Fund

Saudi Venture Capital (SVC) invested USD 10 million in TVM Capital Healthcare’s Afiyah Fund to invest in health tech companies based in Saudi Arabia. TVM Capital Healthcare is a growth capital private equity firm, operating out of Riyadh and Dubai focusing on the Middle East as well as the South East Asia region.

Saudi’s Slide raises USD 1.75 million pre-Seed round

Saudi Arabia-based SaaS platform Slide raised USD 1.75 million in pre-Seed funding from Unifonic's investment arm, UnifonicX, and angel investors. Slide provides businesses with a one-stop solution for direct ordering, allowing businesses to transform their social channels into online ordering platforms. Slide will use the new funding to accelerate its regional expansion.

valU invests in live e-commerce platform Hoods

Egypt-based buy now pay later (BNPL) platform valU, invested in Hoods, a live e-commerce platform. valU’s investment aims to capitalise on Hoods’ unique platform to penetrate the fast-growing virtual shopping space and diversify its offering to both new and existing valU customers and merchants. The investment in Hoods comes just two months after valU announced its acquisition of Paynas, a full-fledged employee management, and benefits company that provides financial services to MSME, as well as valU’s recent minority stake acquisition in Kiwe, the first youth social payment app that facilitates onboarding the unbanked segment in Egypt.

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Disclaimer: This newsletter is prepared by Dash Venture Labs and provides general information only. The information and opinions in the report constitute a judgment as at the date indicated and are subject to change without notice. The information and opinions contained in this report have been compiled or arrived at from sources believed to be reliable in good faith, but no representation or warranty, express, or implied, as to their accuracy, completeness or correctness does also not warrant that the information is up to date. Any reference to third party research material or any other report contained in this report represents the respective research organization’s estimates and views and does not represent the views of Dash Venture Labs and its officers and employees do not accept any liability or responsibility whatsoever with respect to its accuracy or correctness.