??? The Rise of Everything Apps

Based on the recent news of e&'s $400 million investment in Careem Super App, today we're diving into the world of super apps and everything apps, exploring the potential of this emerging technology trend in the UAE and beyond.

What do you think are the implications of this move from the region’s digital marketplace?

As usual, we're also covering news from the past week from the world of fintech, web3, crypto & defi, and beyond.

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Now let’s get started.

?? What’s New in Fintech & Payments

• Saudi Arabia saw a 79% increase in fintech companies from 2018 to 2022 with 147 active and SAR 1.5 billion invested in the field between September 2021 and August 2022.

• Saudi Arabia's Shaker Group has acquired a 10% stake in UAE-based Cashew, a BNPL platform, aiming to strengthen its platforms and drive innovation in the growing digital lending space.

• Fitch Ratings has upgraded Saudi Arabia's sovereign debt rating to A+ due to its efforts to diversify its economy, strong balance sheets, and first budget surplus in a decade.

• The Central Bank of the UAE has selected three new partners to assist in the implementation of its CBDC strategy.

• Rwanda and Singapore partner to launch the Annual Global Inclusive FinTech Forum, aimed at promoting innovation in inclusive finance and advancing technology.

• Alaan, a UAE-based corporate spend management fintech, becomes the first Middle Eastern company to integrate OpenAI.

• Goldman Sachs-backed ZestMoney plans to lay off 20% of its staff after the firm's negotiations with PhonePe for a potential sale were unsuccessful.

• MENA region’s most valuable banks list by Forbes features entities from 10 markets. The 50 banks had an aggregate market value of $548.1 billion. GCC banks dominate with 41 entries, representing 82% of the list. Read the full list here.

• A report: The rise of super apps is posing a dilemma for established players in and beyond the financial industry in the MENA region.

?? The World of Web3

• Meta will deactivate NFTs on Instagram as it shifts away from NFTs, which have lost value due to lack of interest, broader disruption in crypto markets, and the economic downturn.

• ?Zero Two, Abu Dhabi’s leading digital assets infrastructure company, has launched its operations to cater to the rapidly increasing interest in Web3 technology and its ecosystem.

• Meta plans to invest more in AI to boost its metaverse businesses after they fell short of expectations, according to its CTO Andrew Bosworth.

?? Crypto & Defi

• Singapore is developing standards for banks to follow when dealing with digital assets, including cryptocurrencies, stablecoins, NFTs, and others.

?? The State of Investment

• Savvy Games Group, owned by Saudi Arabia’s Public Investment Fund, acquired mobile game publisher Scopely for $4.9 billion which further cements the consolidation in the mobile gaming market.

• South African fintech Peach Payments secures a $31 million Series A funding to expand its product line and growth across Africa.

• MENA startups raised raised $247 million in March 2023, with Saudi Arabia being the top destination for investment, followed by the UAE. Fintech remained the most favored sector.

• Scalo Technologies, a VC based in Singapore, has relocated to Dubai and plans to invest $100 million in promising startups over the next three to five years.

• Kenya will establish a technology innovation fund to support the scaling up of mature businesses and start-ups.

?? The Rise of Everything Apps

The future of apps is here and it's called the "everything app" or "super app".

The recent news of UAE tech giant e& investing $400 million in Careem Super App for a majority stake is a testament to the growing popularity of super apps in emerging markets.

Super apps offer a one-stop shop for all your needs, from food delivery to ride-hailing to financial services. Companies like Careem, Grab, and WeChat have already established themselves as super apps in their respective regions. They offer a seamless customer experience by providing multiple services on a single platform.

But why are super apps gaining so much traction? The answer is in the mobile-first population that dominates emerging markets. According to a 2021 report by App Annie, emerging markets have seen the highest growth in app downloads in recent years. These users expect to perform their daily activities on digital platforms, making super apps the ideal solution for their needs.

Super apps also have the potential to transform the way we live and work. They can drive financial inclusion by providing access to financial services to millions of unbanked individuals. For example, in Malaysia, BigPay – the fintech arm of AirAsia super app – provides microloans to its users.

The possibilities are endless, and the potential for growth is massive. As more companies invest in super apps, we can expect to see more innovative services and features added to these platforms.

As the trend continues to gain momentum, we can expect to see more companies adopting this model and offering their own version of the "everything app".

???? Do you think e&'s investment in Careem Super App is going to help them create shareholder value in the long term? Let me know in the comments.

?? Report of the Week

Mercury rising: Despite the significant challenges faced by businesses, countries, and society at large over the past two years, the fintech sector hasn’t only survived but thrived. The market maturation that was observed in previous years remains strong and is now deepening in unexpected ways. Barclays (in partnership with Money 20/20) surveyed 100+ fintech business leaders to explore the driving variables of the fintech sector, new technologies, and strategies for fintech growth. Download the full report here.

?? Books I Recommend

Rebooting AI: Building Artificial Intelligence We Can Trust by Gary Marcus and Ernest Davis.

Check out more of my favorite reads here.

?? In Other News…

• Payments: Robinhood agreed to a $10.2 million settlement with state securities regulators, related to its operational and technical failures on March 2020.

?? The Podcast for Fintech Enthusiasts

In this episode of Couchonomics with Arjun, Chief Fintech Officer of the Monetary Authority of Singapore, Sopnendu Mohanty , shares insights on how Singapore became a leading fintech hub, from public programs to private sector partnerships. Sopnendu also emphasizes the importance of consumer protection, AML & KYC rules, and cybersecurity in FinTech engagement. He discusses the need for a consumer-first approach for banks to stay relevant, the role of public infrastructure, and shares his views on Crypto, CBDCs, digital assets, and tokenization. Don't miss out on this must-listen episode for anyone interested in fintech and innovation.

??? And that brings us to the end of today’s Crunch

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