Dash Venture Labs: Our Weekly Picks (Issue No.63)

1. Entrepreneurship/Startups

Saudi startups top MENA region in raising funds in H1, collects $446m?

Saudi Arabia’s focus on encouraging entrepreneurship has paid off as startups in the Kingdom raised $446 million in the first half of 2023, the highest in the Middle East and North Africa region.?

According to MAGNiTT’s “H1 2023 Saudi Arabia Venture Capital Report”, Saudi startups accounted for 42 percent of the total capital deployed in the MENA region.?

According to the Dubai-based data analytics platform, the Kingdom ranked second in deal counts, facilitating 54 transactions against the UAE’s 60.?E-commerce also emerged as the topmost sector for funding, closing 11 deals for $368 million.?The report further indicated that “pre-seed” to “pre-series A” deals captured the lion’s share with 86 percent of the Kingdom’s total amassed funds.?

The e-commerce sector witnessed a 245 percent growth year on year in terms of capital deployed while other industries struggled.?

UAE based startup, JOVIO set to launch events marketplace app

Targeting the Middle East and Africa events industry, JOVIO is all set to introduce its new app that will revolutionize the way people plan events by offering a one-stop solution to connect customers and events services providers in a single platform. The app will first debut in the UAE this September, with the ultimate aim to become the largest platform to cater for any celebration in the GCC region in the following years.

The JOVIO app will boast innovative features that empower event providers to showcase their offerings to a wider audience, expanding their online presence and business opportunities. Simultaneously, app users will gain access to an extensive selection of options, allowing them to personalize their events according to unique preferences and interests, ranging from venues to entertainment, catering and more.

JOVIO was created by a team of entrepreneurs, Amit Godiyal, Rupish Baboo and Rahul Singh bringing together years of experience with leading tech companies such as talabat, Amazon and Zomato. The events marketplace app is set to disrupt the events industry by leveraging cutting-edge technology.

ISSF invests $2 million in Oryx Fund to empower Jordanian startups

The Innovative Startups and SMEs Fund (ISSF), announces an investment of $2 million in Hambro Perks' Oryx Fund to empower the Jordanian startup ecosystem and drive technological innovation in the country. The collaboration aims to unlock opportunities for local entrepreneurs and support startups operating in key sectors such as Financial Technology, Healthcare Technology, SaaS & B2B Enterprise Technology, Logistics Technology, and Education Technology.

Founded in 2017 as a partnership between the Central Bank of Jordan and the World Bank, the ISSF aims to facilitate funding for Jordan's early-stage startups and SMEs, while the Hambro Perks Oryx Fund is a MENA-focused VC fund that backs early-stage technology companies in pre-Seed, Seed and Series A.

The collaboration aims to unlock opportunities for local entrepreneurs and support startups operating in key sectors such as fintech, healthtech, SaaS, edtech and logistics.

Saudi fund inks $10m loan agreement for business and startup incubation centers in the Bahamas

The Saudi Fund for Development CEO Sultan Al-Marshad signed?a development loan agreement worth $10 million with Isacc Chester Cooper, deputy prime minister and minister of The Bahamas Ministry of Tourism, Investments & Aviation.

The agreement, signed at SFD headquarters in Riyadh, will involve the construction of business incubation centers across three islands in the Bahamas to support the growth of the tourism sector, signifying SFD’s commitment to supporting sustainable economic development in developing countries and Small Island Developing States (SIDS). ?

The centers being built will include onsite experiential tours, offsite excursions, retailers, and local food and beverage outlets, helping to nurture entrepreneurship and stimulate economic growth in the Bahamas and wider region. The loan will facilitate the creation of dedicated business incubation centers to support the development of new business projects. Specifically, these will accommodate 50 small businesses on Nassau Island, 25 on Exuma Island, and 25 on Grand Bahama Island.

2. Technology

PureHealth, Fujifilm Global collaborate to leverage AI in Abu Dhabi’s healthcare ecosystem

PureHealth, the largest healthcare platform in the Middle East, has collaborated with Fujifilm Global to leverage the latest cutting-edge technology and advanced Artificial Intelligence (AI) solutions to enhance excellence benchmarks in the healthcare sector in Abu Dhabi and beyond.

The partnership was initiated through a ceremony held at Emirates Palace Mandarin Oriental during the recent Japan-UAE Business Forum.

As part of the partnership, PureHealth will be introducing Fujifilm’s advanced Healthcare IT products. The Abu Dhabi Health Services Company (SEHA), one of the largest networks of hospitals and clinics in the UAE, a PureHealth subsidiary, will be the first beneficiary, deploying the state-of-the-art system and products in its facilities.

This latest collaboration reinforces PureHealth’s mission to raise the benchmarks in healthcare excellence, increase standards in patient care, advance the science of longevity and boost the advancements of the UAE healthcare sector. PureHealth is on a mission to unlock time for humankind by pushing the boundaries of innovation and transformation within the healthcare sector.?

Capitalise.ai in Dubai, Cashless in Egypt, Accelerating Women in Tech

Standard Chartered has?teamed up?with Dubai International Financial Center (DIFC) to launch the fifth cohort of?Women in Tech?accelerator program. The program is designed to empower female entrepreneurs in the UAE’s technology sector, and encourage innovation, diversity, and economic development. Participants in the program receive training, workshops, mentorship, and access to seed capital. Applications to join the accelerator can be submitted up until the end of July. Ten startups will be chosen to participate. The top three startups in the program will be awarded a total of $100,000 in non-equity seed capital.

CFI Financial Group has partnered with Finovate Best of Show winner?Capitalise.ai?to?bring AI-enabled, automated trading?to clients in the Middle East. Capitalise.ai leverages code-free automation to enable traders and investors to implement their trading strategies more accurately and reduce human error. Egyptian cashless payments app Flash?secured $6 million in seed funding. The round was led by Addition, and featured participation from Flourish Ventures as well as other angel investors.?

HyperPay acquires Sanad Cash

HyperPay, the largest and fastest-growing payments services provider in the MENA region, has announced the acquisition of Sanad Cash, the leading Saudi spend management fintech. The value of the transaction was not disclosed.?Founded in 2010 by Muhannad Ebwini, HyperPay is a payment gateway that offers merchants a host of payment processing services, including risk and fraud management, monitoring systems, installments, and invoicing systems.

The move aims to enable HyperPay to diversify its product offerings by integrating Sanad Cash’s solution into its platforms and services. Founded in 2020 by Sultan Alhugail, Mahmoud Iswiad, and Shorhabel Ghoneim, Sanad Cash offers its corporate clients a SaaS platform to help them track their spending and process on-demand payments for staff and others. The startup raised a $1.6 million round earlier last year. So far, HyperPay has amassed over $50 million in funding since its launch.

3. Funding Activity

Scalo Technologies leads $3.5 million round for?gaming startup Hexacore

Dubai-based tech venture company, Scalo Technologies, has led a $3.5 million investment round for Hexacore, a mobile game publisher specialising in hybrid mobile web3 games.

The funding, also supported by Xsolla, Estoty, and other angel investors, will fuel the expansion of Hexacore's experienced team, known for creating games that have garnered over 350 million downloads. Notable titles include Sushi Roll, Blend It 3D and Merge Animals.?The investment, announced today, will also drive further development of Hexacore's innovative mobile games with hybrid monetization, including In-App Purchases, NFT Collectables, and rewarded ads.?

Abdumalik Mirakhmedov, Director and co-founder of Scalo Technologies, said: "Hexacore's groundbreaking approach to web3 gaming perfectly aligns with our investment philosophy.?Rashit Makhat, fellow Director and co-founder at Scalo Technologies, said: “With the new investment, Hexacore can now bring its games to the wider web3 gaming community, taking advantage of the scaling potential of traditional gaming audiences, and offering a smooth onboarding process for a new group of gamers."

Scalo Technologies is known for backing innovative and disruptive startups in the technology sector, and the investment in Hexacore underlines its commitment to advancing the web3 ecosystem.?Set up in Singapore in 2020, Scalo chose to base its operations in Dubai in view of the emirate’s high level of business activity, growing economy, and strong government initiatives to attract entrepreneurs and professionals from across the globe.

YallaHub raises $6 million pre-Series A round

Dubai marketplace aggregator, with its quick delivery service YallaHub, has secured $6 million in a pre-series A funding round. As a B2B e-commerce startup, YallaHub enables brands to scale up across the GCC region and achieve global omnichannel sales with a “single-window service”. The company is built upon the foundations of YallaMarket, a Dubai-based ultra-fast grocery delivery service, leveraging its robust infrastructure and cutting-edge technologies. Founded in 2021 by Leo Dovbenko and Stas Seleznev, YallaHub is a B2B e-commerce marketplace that enables brands to scale up across the GCC region and achieve global omnichannel sales with a “single-window service”.

The funds will be used to refine the IT platform for order aggregation and expand the network of partner marketplaces, with plans to accelerate the company's expansion into Saudi Arabia and Qatar in the near future. The new round was co-led by numerous MENA-focused private investors, entrepreneurs and syndicates. Notable investors include Fedor Ovchinnikov, founder of Dodo Brands; Regolith, an ecosystem for financial and investment instruments, and others.??

Fashion app Get Outfit raises pre-Seed investment

Get Outfit, the next-generation fashion recommendation app revolutionises the shopping experience. Get Outfit is a member of in5 Design, based in the Dubai Design District.?

Kim Sanzhiev, founder said: “After six years in the Fashion Tech industry, I believe now is the perfect time to disrupt the way people shop for fashion in the Middle East and Beyond using AI. We just launched our first release on the App Store one month ago and have already reached 6,000 users. In the past two weeks alone, our user base and revenue have doubled.

The round will accelerate Get Outfit’s soft launch of its mobile app in the UAE, with plans for follow-on investments for scaling and launching in Saudi Arabia and the rest of the GCC.?The partnership with the Admitad partner network (powered by Mitgo) gives Get Outfit access to thousands of merchants and creates additional revenue streams through affiliate marketing.?

Tenderd raises investment from Aramco's Wa'ed

Wa’ed Ventures, the Kingdom-based venture capital arm of Aramco, announced a strategic investment in Tenderd, a startup specialising in AI-enabled technologies for real-time emissions intelligence. The platform provides customers with AI-generated insights to increase asset utilisation and reduce emissions, targeting heavy industries such as construction and logistics.

"Our investment in Tenderd reflects our commitment to addressing sustainability challenges facing the industrial sector and providing solutions to decarbonize their operations," said Fahad Alidi, Managing Director at Wa’ed Ventures. "Tenderd brings transformational solutions to traditional capital-intensive industries such as energy, construction, and logistics sector by utilising AI-generated insights to increase asset optimisation and reduce emissions.” \

Founded in 2018 by Arjun Mohan, Tenderd provides customers with AI-generated insights to increase asset utilisation and reduce emissions, targeting heavy industries such as construction and logistics.

The new investment will enable Tenderd to broaden its footprint and reach more sustainable solutions for manufacturers. Tenderd is backed by top investors, including Y Combinator, Peter Thiel, BECO Capital and Dynamo Ventures. The investment from Wa’ed comes at a time when the world is demanding more sustainable practices from heavy industries. Tenderd is serving industries that constitute 40 per cent of the global GDP.

UAE’s Growdash secures $750,000 pre-Seed funding to support GCC expansion

Growdash, a UAE-based startup that empowers restaurants to build and execute profitable online growth strategies, today announced the closing of a US$750,000 pre-seed round of funding led by Flat6Labs. The round also included participation from Plus Venture Capital (+VC), Judah VC, TPN Investments as well as a distinguished list of angel investors, including former Talabat CEO, Abdulhamid Alomar, and serial entrepreneur, Zeid Husban.

In the hyper competitive regional F&B sector, the biggest challenges that restaurants face are realising the full potential of online food delivery channels, maximising their return on growth investments and achieving profitability on these platforms.?Founded in 2022 by Enver Sorkun and Sean Trevaskis, Growdash enables restaurants to manage marketing spend, create data-driven online campaigns, and therefore maintain engagement with their customers.

Growdash, which currently has operations in the UAE and Kuwait, plans to use the funding to grow its team, enhance its proprietary capabilities and launch its SaaS offering in Qatar and Saudi Arabia. Growdash currently operates in the UAE and Kuwait. Following the successful funding round, the company is set to launch its SaaS offering in Qatar and KSA this year, followed by inroads into the wider region in early 2024.

ONE MOTO secures $40 million investment

ONE MOTO Technologies, a leading provider of sustainable mobility solutions focused on decarbonising the last mile in the UAE, is delighted to announce the successful securing of $40,000,000 in lease financing to expedite the leasing of electric delivery vehicles throughout the UAE.

The financing round was led by prominent investors who recognise the immense potential of electric vehicle (EV) adoption in the rapidly expanding delivery sector. With the new funding, ONE MOTO Technologies aims to propel the transition towards zero-emission transportation further, fostering a greener future for the UAE. With their sights on 50,000 vehicles in the UAE by 2025, a vision echoed by the government and following the “stricter emission target with 40% cut by 2023” announcement by H.E Mariam Al Mheiri, Minister of Climate Change and Environment last week.

Founded in 2016 by Adam Ridgway and Stephen Wood, ONE MOTO provides sustainable mobility solutions focused on decarbonising the last mile in the UAE. The recent financing round will accelerate ONE MOTO’s plans to turn transportation in the UAE into zero-emission.

Egypt’s Flash raises $6 million Seed round

Flash, Egypt’s new cashless payments app, has completed a $6 million seed round led by Addition with participation from Flourish Ventures and other strategic angel investors. This funding will be used to accelerate the startup's product development and customer & business acquisition in Egypt. Flash has also obtained approval from the Central Bank of Egypt in partnership with Banque Misr to operate as a technical payment aggregator.

Founded in 2021 by Erik Gordon and Sherine Kabesh, Flash is a payment application that provides cashless payment solutions for consumers and businesses through a scan-and-pay service.? This funding will be used to accelerate Flash’s product development and customer and business acquisition in Egypt.

The Flash team has built a robust network of key ecosystem participants, stakeholders, and renowned global investors. As part of its growth strategy, Flash is seeking to expand strategic roles in its Engineering and Product teams.

Tunisia’s Kaco secures new funding round

Kaco, the Tunisian startup that is revolutionising the electric scooter industry, has recently achieved a significant milestone through a new fundraising round. This successful round of investment will provide the necessary financial support to Kaco, allowing them to finalise the construction of a production facility with a capacity of manufacturing a thousand scooters per year. The investment comes from UGFS North Africa, an esteemed investment fund in the region, which has demonstrated its confidence in Kaco’s potential by providing financial backing. The exact amount of the investment remains undisclosed.

Kaco was founded in 2018 by Salmi Med Ali in Tunisia. Since its inception, the startup has been focused on revolutionising the electric scooter industry by introducing innovative and sustainable mobility solutions.

The new round will allow Kaco to finalise the construction of a production facility with a capacity of manufacturing a thousand scooters per year.

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