42 companies benefited from the nominal value allocation mechanism in 2023: CMA

CAIRO: From the release of new accelerator programs and increased fintech funding to market entries and technology partnerships, the startup landscape in the Middle East and North Africa is experiencing dynamic development.

Impactful investments, strategic expansions and joint initiatives are helping various sectors achieve significant growth and more innovation.

Egyptian company Raya FutureTECH completes its first accelerator program

The Egyptian company Raya FutureTECH, the innovation arm of Raya Holding, has successfully completed its first accelerator program in cooperation with GIZ.

The Demo Day in Cairo marked the graduation of the first group of 13 startups, including Arzaq Masr, Cultivaet and Accounting Club, as well as Meta Egypt, BUS14 and Credify.

Jadeed, Wfrley and PlanQ have completed the program, as have Tatbeek, Holiday Homes Service Co., HE Rental and WhereApp.

The winners receive additional support and financial resources to further develop their solutions.

Clara Samman, Senior Program Officer at Raya FutureTECH, provided insights into the program’s goals and achievements.

“This program is designed to provide founders with the resources, training and mentorship they need to grow. Through one-on-one consultations with Raya experts, workshops and connections to our network, we have equipped them with the tools for success,” she said.

UAE-based Maalexi secures $1 million in venture capital from Stride Ventures

United Arab Emirates-based agriculture-focused fintech company Maalexi has raised $1 million in venture capital from Stride Ventures, according to a report by Abu Dhabi SME Hub.

Founded in 2021 by Azam Pasha and Rohit Majhi, Maalexi enables small food and agribusinesses to gain direct cross-border trade access through its dynamic risk management platform.

This investment is intended to accelerate Maalexi’s growth plans and improve the company’s operational capabilities for more efficient procurement and distribution of food and agricultural products throughout the region.

Pasha, the company’s CEO, highlighted the impact of this financing on the company’s expansion.

“This debt raise from Stride Ventures will significantly enhance our ability to acquire new users and expand our operations, and further solidify our position as the leading digital risk management platform for small and medium-sized enterprises engaged in cross-border trade,” he said.

The CEO added that the funds will be used to introduce “cutting-edge technology solutions” that will streamline the movement of goods between the company’s local and international warehouses and carriers.

Jordan’s ISSF invests $5 million in Global Ventures’ Fund III

The Innovative Startups and SMEs Fund in Jordan has invested $5 million in Global Ventures’ Fund III.

Founded in 2018 by Noor Sweid, Global Ventures is a Series A-focused emerging markets VC firm with $300 million in assets under management investing in ambitious founders across the MENA region.

Established in 2017 by the World Bank and the Central Bank of Jordan, the ISSF supports Jordanian start-ups through direct investments and investments in venture capital funds.

Mohammed Al-Muhtaseb, CEO of ISSF, expressed optimism about the collaboration, saying it was in line with the company’s “vision” for the Jordanian ecosystem, which includes leveraging local talent.

“We are delighted to welcome Global Ventures Fund III to our fund portfolio. They have shown great confidence in the Jordanian ecosystem and have invested in several Jordanian companies from previous funds,” he added.

Hala from the United Arab Emirates expands into the Egyptian market through partnership with MwaslaTech

United Arab Emirates-based mobility company Hala has announced its entry into the Egyptian market through a partnership with MwaslaTech.

Hala, founded in 2019 through a joint venture between Careem and Dubai Roads and Transport Authority, has signed a memorandum of understanding with MwaslaTech, a provider of smart transportation and shared mobility solutions.

Hala aims to introduce an electronic taxi dispatch solution and leverage modern technologies to improve the travel experience in Egypt, especially in new cities such as the new administrative capital.

Khaled Nuseibeh, CEO of Hala, emphasized the strategic importance of this expansion.

“This is a proud moment for all of us at Hala as we pursue new and exciting opportunities outside the UAE for the first time and begin our ambitious expansion into the MENAT region,” said Nuseibeh.

“We are delighted to partner with a trusted industry leader like MwaslaTech for this critical next step in our growth trajectory. Our experience and reputation as a reliable provider in the UAE will enable us to offer world-class transportation solutions in Egypt,” he added.

Qatar’s Startup Grind partners with Builder.ai to support local startups

Qatar-based startup community Startup Grind Qatar has partnered with UK-based Builder.ai, an AI-powered composable software platform, to digitally empower local businesses and entrepreneurs.

Through this collaboration, Qatar-based startups will gain access to Builder.ai’s platform and expertise, enabling them to optimize their development processes, shorten time to market and scale their businesses efficiently.

Varghese Cherian, Chief Revenue Officer at Builder.ai, expressed his excitement about the partnership.

“We are excited to partner with Startup Grind Qatar to provide local startups with the tools and resources they need to succeed in today’s competitive market,” said Cherian.

“At Builder.ai, we are committed to supporting entrepreneurship and fostering innovation, and this partnership is an example of our commitment to driving digital transformation and growth within the startup community in Qatar,” he added.

MENA VC landscape records 33% more investors: MAGNiTT

The number of investors in the Middle East and North Africa venture capital ecosystem saw a 33 percent annual increase in the first half of 2024, new data shows.

According to a report by venture data platform MAGNiTT, the improving sentiment during this period led to a 130 percent increase in the number of funds launched in the MENA region.

Data showed that despite the increased number of investors, only $768 million in funding flowed into regional startups, a 34 percent decrease from the previous year.

The total number of transactions was 211, a decrease of 18 percent compared to the first half of the year, while the number of sales fell by 63 percent to just 10.

With $244 million in funding, e-commerce was the most funded sector, while fintech was the industry of choice in terms of number of deals.

Sanabil Investments of the Public Investment Fund was the most active investor in the region with invested capital of US$57 million.

Saudi startups raised the most funds in the first half of the year at $412 million, followed by the United Arab Emirates at $225 million and Egypt at $86 million. However, all of these markets saw declines of 7, 19 and 75 percent, respectively.

Morocco and Kuwait made it into the top five list with $17 million and $14 million respectively.

In terms of the number of transactions, the United Arab Emirates topped the list with 83 transactions, representing an annual increase of 11 percent, followed by Saudi Arabia with 63 transactions, representing a decrease of 3 percent, Egypt with 28 transactions, representing a decrease of 15 percent, and Morocco and Bahrain with 10 and 7 transactions respectively.