Dash Venture Labs: Our Weekly Picks (Issue No.81)

1. Entrepreneurship/Startups

Ma’an launches the inaugural edition of the Abu Dhabi Social Entrepreneurship Forum at NYU Abu Dhabi

The Authority of Social Contribution – Ma’an in partnership with startAD, the Abu Dhabi-based startup accelerator powered by Tamkeen and anchored at NYU Abu Dhabi (NYUAD), has launched the inaugural edition of the Abu Dhabi Social Entrepreneurship Forum.

The Abu Dhabi Social Entrepreneurship Forum highlighted pressing factors of social entrepreneurship on a local and global scale, and the importance of upskilling youth to contribute to the cause, through a series of roundtable discussions and workshops.

The event was attended by 150 people including government?officials, faculty and students, NGOs, investors, social entrepreneurs, startup founders and more. Panel discussions were held on the topics of healthy lifestyles and youth for climate action, along with a think tank brainstorming session looking to the future, showcasing 12 local and international social enterprises, including 10 alumni from The Authority of Social Contribution – Ma’an.??

Modus invests $2.8 million in eight startup launches through its Venture Builder platform

UAE-based Modus Capital has announced the launch of eight new startups as part of its venture builder programme, investing $2.8 million across these newly-launched ventures.

These startups include JamaliBox, MDBX, Monet, Oscar, Seva, Sindbad, Stornest, and Your Social Smile.?Modus operates a network of venture builders anchored by a $50 million Venture Builder Fund with programmes located in Abu Dhabi, Riyadh, and Cairo.

The Modus’ venture-building approach involves a nine-month programme designed to empower established and new founders through financial and non-financial offerings, including mentorship and access to networking opportunities, among other resources. Modus will remain committed to supporting each startup, particularly with introductions to its network and facilitating access to follow-on investment opportunities from Modus’ VC fund and other investors.?

In 2024, Modus is targeting the launch of 6-8 companies, leveraging a pre-existing pipeline of ideas and entrepreneurs in its venture builders. The platform is also welcoming new applications.?

Scitecs and HubSpot collaborate to Launch ‘Accelerate Middle East Program’ Supercharging Startup’s success

MENA-based founders are invited to join HubSpot and Scitecs for practical session “Build the Ultimate Tech Stack to Supercharge Your Startup's Success”. “We'll be unraveling the mysteries of tech stacks and guiding you through the process of building one that suits your unique startup needs,” said Dr. Ahmed Mourady – Managing Director of Scitecs. This session will be led by Eoin McGuinness - Head of HubSpot for Startups, MENA, CEE & UK who announced:” We'll also be launching our new program - Accelerate Middle East - you'll leave with a free HubSpot Portal, and the software discounts needed to start building your tech stack”.

2. Technology

Masdar City Free Zone introduces specialized AI business package designed to drive tech innovation in the UAE

The Masdar City Free Zone has introduced a new licensing package for start-ups and businesses focused on artificial intelligence (AI). The package is part of a collaboration between Masdar City and ?Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) designed to accelerate AI growth in the region.AI-focused businesses of any size will be able to begin operations in Masdar City with a tailored package that includes licensing and office space starting at 12,000 AED per year. Students and faculty of MBZUAI who wish to open an AI company within the Masdar City Free Zone will receive a 50 percent discount for the first two years of operations. The program is an outcome of a Memorandum of Understanding signed at Abu Dhabi Sustainability Week between the Masdar City-based university, Masdar City, and The Catalyst, Masdar City’s venture arm, which invests in clean tech start-ups.

In addition to 100 percent foreign ownership, 100 percent income tax exemptions, comprehensive set-up support through the One-Stop Shop, and other perks, the Masdar City Free Zone offers an environment designed to help AI and other tech companies thrive.?

PureHealth acquires leading Tech Company

PureHealth, the largest healthcare platform in the Middle East, has acquired 100% of PureCS, a leading cloud and technology services provider, specializing in cyber security, AI information systems, complete end-to-end IT, and digital services. By focusing on speed of digitization, this acquisition will ensure solutions are prepared for tomorrow’s needs, driving technological leadership in line with PureHealth’s commitment to creating a tech-enabled platform and raising standards in healthcare excellence, underpinned by the importance of the role of AI and technology in the healthcare and consumer sector.

PureCS has delivered the region’s largest digital health project, the UAE’s national project called Riayati, UAE’s national unified medical records platform, with more than 17 million unique electronic medical records under one exchange. This transformative project improves patient care, streamlines record access, enhances efficiency, and promotes cost-effectiveness, reshaping the UAE's healthcare landscape. PureCS has also delivered several local and federal level technology related projects focusing on complex system integrations, datacenter, cyber security and digital consumer applications.

PwC Middle East reveals 50 climate tech startups

PwC Middle East has launched its first Net Zero Future50 report, revealing 50 pioneering startups in the Middle East driving innovation focused on reducing greenhouse gas emissions and addressing the impacts of global warming across key economic sectors in the region.

The report highlights their groundbreaking technologies and achievements in climate management and carbon emissions reporting, in addition to opportunities and challenges in growing and scaling their businesses. Using PwC networks and tech partner expertise, we identified 500 climate and sustainability-focused start-ups operating in the region – with over 200 coming forward in response to their public call for nominations at COP27 in Sharm-El-Sheikh, Egypt, last year. A rigorous selection process, including in-depth interviews and evaluations, led to the Net Zero Future50, chosen by PwC and Strategy& judges specialising in ESG, digital innovation, and energy transition.

UAE’s proptech HotDesk partners with XSPACE

UAE’s flexible workspace solution HotDesk announced a partnership with Saudi Arabia’s XSPACE in an effort to boost the Kingdom’s market.

Operating in over 45 countries including Saudi Arabia, HotDesk will aim to support XSPACE’s debut in Riyadh via a technical integration partnership. ?

The strategic cooperation will see XSPACE’s locations being built on top of HotDesk’s tech stack, including HotDeskOS for efficient coworking management, HotDesk marketplace for client reach, and integrations with its corporate offerings. Founded in 2020 by Mohamed Khaled, Hotdesk creates an opportunity for businesses with underutilized workspaces to generate additional revenue by subletting their vacant office space as on-demand workspaces.

MENA fintech sector shows resilience amid a venture slowdown

In the face of a general venture capital slowdown in 2023, the Middle East and North Africa’s fintech sector has demonstrated remarkable resilience, according to MAGNiTT’s latest report.

The analysis shows the sector raised $484 million across 66 deals within the first nine months of the year. Maintaining its position as a dominant force in the MENA region, fintech captured a significant 36 percent of all funding and accounted for 23 percent of the total deal count in the first three quarters of 2023. ?

Despite prevailing economic headwinds, series A valuations in the sector have remained somewhat sustainable, witnessing a slight 2 percent decrease from the highs of 2022. ?

However, seed-stage valuations have experienced a more pronounced year-on-year decline of 20 percent. Additionally, the fintech sector in the MENA region saw a notable increase in merger and acquisition activities, with a 29 percent year-on-year rise in exits recorded by September 2023. The UAE has emerged as a key player, leading the region in these activities.

Anghami, OSN+ merge to create regional entertainment conglomerate

Dubai-based OSN+ and Anghami Inc. are merging to create one of the Middle East’s largest entertainment streaming services as they seek to fend off competition from rivals such as Spotify Technology SA and Netflix Inc.

As part of the deal, OSN+’s parent, OSN Group, will inject $50 million into Anghami and become a majority shareholder in the company. The new entity will have over 120 million registered users, 2.5 million paying subscribers, and $100 million in revenue, the companies said in a joint statement.?Anghami, which went public 18 months ago via a blank check merger at an enterprise value of $220 million, will continue to be listed on the Nasdaq. Its share price has since fallen to $1.58, giving it a market value of about $41 million. OSN’s cash injection will help the stock from being delisted, Elie said.

The OSN Group is investing in Anghami at a valuation of $3.65 per share, or 3.9 times the stock’s average price for the past month, OSN said.

3. Funding Activity

UAE’s Your Compass invests in Fork N Knife’s $800,000 Seed round

Tech-enabled cloud kitchen, Fork N Knife, has successfully closed its seed funding round with $800,000, paving the way for the company to continue its journey of advancing the food tech sector based on its accumulated expertise and capabilities.

A diverse group of individual angel investors and institutions inside and outside the Middle East contributed to the successful funding round. Among them is UAE’s Your Compass. Founded in 2022 by Yassir NasrAllah, Fork N Knife offers a cooking as a service (CAAS) model, allowing restaurants and food enthusiasts to start and expand their own food businesses without any initial capital.

The startup has plans to make an entry into Africa and Europe on the back of the fresh funds.?

Wamda Capital invests in Salus’ $4.7 million Seed round

Wamda Capital has participated in a $4.7 million Seed round for Turkey-based healthtech startup, Salus.

The oversubscribed round was led by Northzone with participation from 500 Emerging Europe, Pitchdrive, and the CVC arm of ?? Bank, Collective Spark alongside angel investors including? F?rat ?leri (Hummingbird Ventures), Adam Anders of Anterra Capital, ?nan? Balc? (Crestone VC & Lazada), Egem Eraslan (Midas) Can Yücao?lu (MAP Investment), Mehmet Y?lmaz (Freeletics & Zavvy), Joshua Cornelius (Freeletics & Zavvy) and K?van? Semen (Dataguard).?

Founded in 2022 by Alperen Adikti and Din?er Karaduman, Salus is a corporate mental health platform that offers a myriad of services ranging from therapy and coaching sessions to self-care content.?The new capital injection will be used to expand Salus’ clinical network, enhance user experience, and scale its B2B business.

Lebanese agritech Dooda Solutions wins $100,000 grant from PepsiCo Greenhouse Accelerator

Lebanon-based agritech Dooda Solutions is set to receive a $100,000 grant after being named the winner of this year’s PepsiCo Greenhouse Accelerator: Mena Sustainability Edition.

Founded in 2018 by Nada Ghanem, Dooda Solutions, specialises in producing premium-grade vermicompost, and organic fertilisers on a commercial scale. Its nutrient-rich vermicompost enhances soil fertility and improves crop productivity. The six-month-long programme is held in partnership with the UAE Ministry of Climate Change and Environment (MOCCAE) and Food Tech Valley (FTV).

The program this year focused on sustainable agriculture in line with PepsiCo’s sustainability strategy, pep+ (PepsiCo Positive). The AgriTech industry in MENA has attracted around $250 million in funding in 2022, instilling confidence in regional start-ups and their innovation potential for sustainable agriculture. The Greenhouse Accelerator Program has created new growth opportunities in this space, helping the startup ecosystem flourish.

Egypt’s WayUp Sports closes Seed round?

WayUp Sports, an Egypt-based marketplace for sports equipment and apparel, has raised a Seed round led by Beltone Venture Capital and Index Sports Fund. The amount raised remains undisclosed.

The recent fundraise follows the startup’s completion of a pre-Seed round last year. Since its launch in 2021, WayUp Sports has partnered with more than 70 local and international brands offering 10,000 products for more than 100,000 customers.

Using the funds, WayUp Sports will be able to expedite the rollout of its private brand, fuel its regional expansion, and enhance the user experience of its app and website.

Raha closes round of pre-series A funding at $7mln

Raha, Kuwait’s fast-growing logistics tech company successfully completed its pre-Series A funding round led at $7mln by Soor Capital and PIF-backed Private Equity Fund, eWTP Arabia Capital. This latest investment brings up the total raised by the ambitious tech start-up to USD 14 million. Raha’s initial seed funding round had raised an impressive capital of USD 6.7 million, led by KSA’s Aujan Enterprises and Kuwait’s Nox Management, as well as London-headquartered VC, Cedar Mundi Ventures.

Since launching in 2022, Raha has quickly grown to become a multi-sector technology and automation provider offering a wide range of specialized solutions. The company’s first successful project in the Kuwaiti market was ShopRaha; the fully automated e-grocery platform that was the region’s first pure-play service. Setting a new benchmark in the grocery retail sector, ShopRaha features Kuwait’s first fully automated robotics-fulfillment center, as well as the first chilled automated warehouse globally.

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