Dash Venture Labs: Our Weekly Picks (Issue No.43)

1. Entrepreneurship/Startups

Step 2023: Dubai’s startup ecosystem adopts sector-agnostic approach while seeking 30 unicorns

Dubai’s startup ecosystem is adopting a sector-agnostic approach while searching for 30 companies that aim to reach unicorn status by 2030. A crucial part of the D33 economy plan is for Dubai to support the growth of 30 firms to become unicorns in the next decade. From startups developing technology to manufacture flying taxis and autonomous driving vehicles to those creating AI chatbots, as well as startups taking cloud kitchens to the next level and vertical farming projects, all new business ideas are welcome in Dubai.

Hub71, backed by the Government of Abu Dhabi and Mubadala Investment Company, showcased 20 startup companies at Step this year. Last year, Hub71 announced that the startup community has collectively raised $1 billion in venture capital since its launch in 2019.

Start-ups enrolled in Dubai's in5 incubator raised more than Dh2.4bn in 2022

Start-ups enrolled with in5, the incubator under Dubai's Tecom Group, have raised more than Dh2.4 billion in funding from its inception through to the end of 2022.

FinTech companies dominated funding rounds last year, accounting for more than half of the total investments received, the incubator said on Thursday. The incubator welcomed 160 start-ups in 2022, an annual growth of 31 per cent, bringing the total number of companies under its fold to more than 750, it said. The number of start-ups led by women more than doubled last year, with more than half in the technology field, in5 said.

The UAE's start-up scene is an important pillar of the country's diversification drive as it prepares for the economy of the future, powered by digitalisation. Several programmes have been launched to boost the sector, including the updated Entrepreneurial Nation programme that seeks to develop more than 8,000 small and medium enterprises and start-ups by 2030, and Future 100, aimed at supporting and honouring the top 100 start-ups that will have a significant impact on the economy of the Emirates.

COREangles launches COREangels MEA to invest in startups in the Middle East, Africa

COREangels, a global community of angel funds and angel investors is proud to unveil the launch of COREangels MEA on January 2023. COREangels MEA is the first fund among angel funds of COREangels around the world to focus on this market, in collaboration with PTS Holding’s ORO Partners which will lead the fund. COREangels was founded in Portugal in 2019, with the aim to connect startups with angel investors from all over the world.

COREangels MEA is an angel investment network that connects and supports business angels, early stage investors, entrepreneurs and corporates seeking investment opportunities mainly in tech-disruptive innovations throughout Middle-East and Africa. Maha Mandour, Group Managing Director of PTS Holdings said: “The vision is to source unique investment opportunities in?innovative ideas and startups in the region from a new generation of young talented individuals and working with them closely to play a significant role in a way that will guarantee a brighter future for the region.” This fund will invest in pre-seed and seed tech-startups in the Middle East and Africa, targeting hundreds of startups and angel investors.

SEA Ventures and Foodics partner to support F&B entrepreneurs

SEA Ventures partnered with FOODICS, a cloud-based restaurant technology and payments platform in the MENA region, to digitally empower entrepreneurs in the F&B sector by providing technical solutions for startups.

This agreement aims to achieve digital empowerment and operations management automation to enhance the quality of emerging projects and provide numerous support services to upgrade the entrepreneurship landscape around Saudi Arabia. FOODICS was founded in 2014 and processed over 6 billion orders through its platform. It also raised $170 million in its latest series C funding round last year. SEA Ventures is a Saudi-based business accelerator that offers incubation, consultation, acceleration, and education programs and services.

Dubai SME and Khalifa Fund to showcase Emirati startups in Gulfood 2023

The Khalifa Fund for Enterprise Development and the Mohammed Bin Rashid Establishment for SME Development (Dubai SME) have collaborated to showcase Dubai’s entrepreneurial ecosystem at the 28th edition of Gulfood. The ecosystem will showcase the food and beverages sector, highlighting upcoming projects, local emerging enterprises and their products, and help small businesses connect and network with international vendors and gain access to new markets and opportunities.

Dubai SME will also showcase about 10 companies at the event, including Liwa Dates, Health Choice General Trading, Health Way General Trading, Special food zone foodstuff trading, Ibubble Tea House for food & beverages trading L.L.C. The Khalifa Fund for Enterprise Development would represent P&P Cups, Al Diyafa Hotel & Catering Supplies, Khairat Al Yemen Honey & Natural Herbs, and more. The GCC food and beverage market is expected to reach a market value of $94.4 billion in 2023, at a compound annual growth rate (CAGR) of 6.1%, as per a report by British Centres For Business.

2. Technology

AD Gaming, SAWA Group collaborate to boost gaming ecosystem in Abu Dhabi

AD Gaming has partnered with SAWA Group, a Chinese game publishing and esports company, to boost the gaming and esports ecosystem in Abu Dhabi. The partnership will allow SAWA to expand its base in the region and be a part of its growing gaming ecosystem. The partnership will facilitate the international expansion of Chinese gaming and esports companies through Abu Dhabi and provide the local industry with access to reach a bigger audience, a press note by Zawya read.

SAWA Group is known for the localisation of global video games—largely developed in China—and esports content and for making the game library more accessible to the Arabic-speaking population across the MENA region. The company will also benefit from being part of the large cluster of gaming companies in Abu Dhabi, with opportunities to work with the AD Gaming community on new projects.

DMCC, TDeFi partner to support Web3 and blockchain businesses

Dubai Multi Commodities Centre (DMCC) has joined forces with TDeFi, a Web3 incubator and consultancy firm, to offer a new accelerator programme for Web3 and blockchain companies in Dubai. The accelerator programme, which aims to attract new crypto companies to Dubai, will offer mentorship and sessions on a range of topics related to crypto and scaling a business at the DMCC Crypto Centre.

The month-long programme will run for a minimum of two editions over the next 12 months, with interested companies receiving priority guidance and services from DMCC to formally set up at the Crypto Centre. The centre is a comprehensive ecosystem for companies that develop Web3 and blockchain technologies and offers crypto businesses and entrepreneurs solutions to set up and scale their operations. TDeFi will select a ‘handful of startups to be part of its in-depth incubation programme at the end of each cohort and it will provide them with access to additional TDeFi advisory services and its growing ecosystem.

MakeO acquires Dubai-based health tech startup Smileneo

The use of telehealth in the Middle East and North Africa (MENA) and South Asia is surging with consumers and healthcare providers rapidly embracing digital-healthcare technologies. In response to the growing tech adoption for orthodontic care, Asia's makeO and MENA's Smileneo, both leading direct-to-consumer teeth-straightening platforms in their respective markets are joining forces.?The combined entity will become the largest clinical beauty technology platform across the markets, with the scale to match consumers' demand. The acquisition amount has not been disclosed. makeO, India’s only U.S. FDA approved B2C aligner company, is an innovative tech-enabled brand that offers at-home ‘aesthetic makeovers’, i.e. oral and skin care services via its brands toothsi and skinnsi.?

ADGM teams up with UAE digital lender Zand Bank to support SMEs

Abu Dhabi Global Market (ADGM), the UAE capital's financial hub, has partnered with Zand Bank, the digital lender licensed by the UAE Central Bank, to support small and medium enterprises in the country. The agreement will focus on providing preferential banking services for ADGM-licensed entities, including SMEs, virtual assets companies, funds and corporations, the two entities said in a statement on Monday. SMEs incorporated in ADGM will also be offered access to SMEsouk, Zand’s digital platform for SMEs. As per the agreement, ADGM and Zand Bank will also support the placement of Emiratis and offer finance training programmes, SME financing platforms, a FinTech sandbox and corporate innovation programmes.

Dubai-based Syrve launches revolutionary food tech solutions for restaurant automation in Egypt

Syrve, a UAE-headquartered restaurant management platform, announced its entry into Egypt, as part of its expansion plans in the MENA region. It has set up an office in Cairo, with plans to launch its innovative food tech solutions for restaurant automation throughout the country. Egypt has been chosen after several rounds of research within the MENA region. The current stake is taken on the cost of entrance, hunger for tech in the country and the overall demand on education in terms of restaurant automation throughout the country. Egypt has been chosen after several??rounds of research within the MENA region.

The current stake is taken on the cost of entrance, hunger for tech in the country and the overall demand on education in terms of restaurant management, the company said. The company is working on innovative solutions for the food service market to automatise bars, restaurants, and hospitality businesses. The company said it will provide the most innovative software solutions according to the latest food tech trends, including FaceID, AI Forecasting, and powerful application program interface (API) to hospitality sector players in Egypt.

Crayon Data and Redington MEA partner to boost Africa fintech

Crayon Data, a leading artificial intelligence and big data company headquartered in Singapore with a presence in India and UAE, has announced its partnership with Redington Middle East and Africa (MEA) in Africa. Together, Crayon Data and Redington MEA will strengthen Africa’s digital backbone with AI-driven solutions. The partnership aims to create a highly differentiated offering for fintech and consumer banking players to accelerate financial inclusion.

Suresh Shankar, CEO & Founder of Crayon Data, said: “Together, Crayon Data and Redington MEA will offer an innovative business model and an end-to-end platform for any enterprise wanting to launch a digital wallet or Neo bank. The platform combines Redington’s hardware, software, and mobility expertise and presence in 18 markets, with Crayon Data’s innovative maya.ai fintech software.”

3. Funding Activity

Egypt-based fintech Hollydesk has raised $1 million in venture debt financing

Hollydesk, the first and only expense management platform in Egypt, announced that it had raised $ 1 million in venture debt financing to help more small and medium-sized businesses (SMBs) in the country manage and track their daily expenses. The funding will be used to expand Hollydesk's offerings and reach more companies needing efficient expense management solutions.

Hollydesk's platform is designed to be user-friendly and easy to use, even for non-tech-savvy users. It offers features such as receipt scanning and real-time expense tracking. "Our mission is to help small and medium-sized businesses focus on what they do best by streamlining their expense management processes.With this new funding, we can expand our reach and help even more companies across Egypt," said Mahmoud Moussa, CEO of Hollydesk.

Saudi Arabia’s venture capital funding nears $1 billion mark

Driven by Saudi Arabia’s unprecedented growth in its startup ecosystem, the Kingdom’s venture capital funding increased by 72 percent last year compared to 2021 with investments reaching $987 million across 144 deals, according to MAGNiTT. However, the leading startup and venture capital data firm cautioned that, as global economic uncer- tainty and investor fatigue rises, the venture market might be most vulnerable to taking a hit. Saudi Arabia managed to grow when leading venture markets in the region witnessed a downfall in investments in 2022 like the UAE’s 20 percent year-on-year decrease in funding. In 2022, the financial technology sector, also known as fintech, was the industry of choice for investors attracting almost 25 percent of the total startup investments in the Kingdom.

KBW Ventures invests in Rebellyous Food’s $9.5 million round

UAE-based KBW Ventures, founded by HRH Prince Khaled bin Alwaleed bin Talal Al Saud, has invested in a $9.5 million equity round for US-based foodtech company Rebellyous Food.

Other investors participating in this round include Clear Current Capital, Fifty Years, Liquid 2 Ventures, CPT Capital, and Agronomics. Founded in 2017 by former Boeing engineer Christie Lagally, Rebellyous Foods has developed a technology to make a variety of plant-based chicken products. Rebellyous products are currently available in more than 1000 retail locations and more than 100 school districts across the US. Rebellyous will use the investment to deploy its breakthrough equipment and continue on its mission to grow accessibility and availability of plant-based meat through tech-backed solutions.

AirGo, Oman’s Unmanned Traffic Management drones startup, raises $2.7m in a seed round

AirGo, a drone operations service provider, has raised $2.7 million in a seed round from the Saudi VC Company, Forming Futures. Through this investment, the startup aims to set up and expand in the Saudi market.?AirGo was founded in 2020 and functions as an Unmanned Traffic Management (UTM) and specializes in enabling low-altitude drone operations and advising clients on obtaining permits to ensure they manage their drone operations legally and safely.

It operates as a platform-as-a-service that enables businesses, governmental entities, and educational institutions to avoid operating risk, regulatory challenges, and capital expenses associated with drone operations. AirGo is part of Cohort 2 of the Omantel Accelerator program managed by Omantel Innovation Labs.

FreshToHome raises $104m with Amazon as lead investor

FreshToHome, an online marketplace, has closed $104m in Series D funding with Amazon Smbhav Venture Fund leading the round. Existing investors including Iron Pillar, Investcorp, Investment Corporation of Dubai, Ascent Capital and others have also participated in this round. New investors joining this round include E20 Investment, Mount Judi Ventures and Dallah Albaraka. JP Morgan was the placement agent to FreshToHome for the fundraise.

The funding will strengthen the brand’s mission to make 100 per cent preservative and antibiotic-residue free fish, seafood, and meat accessible and affordable. Launched in 2015, the company operates in more than 160 cities in India and the UAE and offers over 2,000 certified fresh and chemical-free products. Two years ago, FreshToHome raised $121m in its Series C round, led by Dubai’s Investment Corporation of Dubai, Investcorp, IronPillar, Ascent Capital and US Government’s development finance institution – DFC.

Parcel raises $1 million through Beban TV show

Hope Ventures, the investment arm of Hope Fund and producers of Beban TV show, co-invests $1 million in Parcel alongside the private sector on the eighth episode of Beban Season 2, which can be streamed on the region’s first and biggest video-on-demand platform, Shahid, for free, or watched at 6 PM on Bahrain TV and 9:30 PM on Alrai TV.On the eighth episode, Parcel, a logistics solution that provides on-demand delivery services by connecting businesses with freelance drivers, founded by Ali Dhaif, raised $1 million from Hope Ventures, Saudi’s unicorn; Jahez, and Ex-founder of Carriage and current Founder and CEO of Cari, Mr. Abdulla Almutawa.

Through Parcel’s technology platform, businesses and aggregators can instantly request and assign drivers to deliver orders to customers in a seamless, convenient way while managing driver payments, measuring performance, and tracking deliveries.

8X Ventures to deploy $20 million in Mena cleantech startups

UAE-based VC firm 8X Ventures plans to deploy $20 million in the Mena region's climate tech and cleantech startups. It also plans to help at least one-third of the startups in its portfolio to expand to the Middle East by 2024.

Founded in 2022 by Chirag Gupta, Esha Arya, Ajay Singh Rajput, and Vinod Agarwal, 8X Ventures supports the growth of deeptech startups offering clean and climate-focused solutions in the Mena region. 8X Ventures claims to have made 12 investments in early-to-seed-stage deeptech startups spanning India, Singapore, and the United Kingdom. Apart from funding, 8X Venture provides post-investment guidance, strategic guidance to portfolio companies, operational guidance, and connections to other investors and customers for global expansion.

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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.

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