Startup Wrap – Initiatives to promote digital transformation invigorate regional collaboration
CAIRO: Digital transformation is on the horizon as regional companies work together to further drive technology development across the Middle East and North Africa.
In addition to this week's partnership, Al-Rayda Digital Solutions, the innovation arm of Saudi Arabia's Al-Rayda Digital Group, has signed an agreement with regional fintech company ABHI to promote financial inclusion in the Kingdom.
Under the terms of the agreement, Alreida Digital Solutions will leverage ABHI's advanced technological capabilities to introduce a range of innovative financial services tailored to the Saudi market.
The partnership will focus on jointly launching new financial products, leveraging Arraeda's deep knowledge of local market trends.
Additionally, Al-Raeda has committed to significant financial investment and has pledged access to $200 million over three years to support the development and localization of ABHI products for the Kingdom.
“We are excited to work with ABHI to revolutionize the financial landscape in Saudi Arabia. This partnership underscores our commitment to fostering innovation and promoting economic empowerment through strategic collaboration. Together, we aim to redefine access to financial services and empower individuals and businesses across the region,” said Paul, CEO of Alreida Digital Solutions. Mellott said.
Paul Melotto, CEO of Alraedah Digital Solutions, and Omair Ansari, CEO and co-founder of ABH.Supplied
Founded in 2021, ABHI specializes in access to earned wages, invoice factoring, small business working capital, revenue-based lending, and payroll solutions.
ABHI claims to have assisted more than 1,000 companies, increased financial stability for approximately 750,000 employees, and processed over $300 million in loans across various geographies.
The company is backed by notable investors including Y Combinator, VEF, SpeedInvest, Venture Souq, Global Ventures, and Zayn Capital.
Abu Dhabi's Camera Financial Holding partners with Egypt's Beltone Holding
Camera Financial Holding, an Abu Dhabi-based technology and fintech interest group, has partnered with Beltone Holding, a prominent Egyptian financial services provider, to develop digital transformation and customer experience in the North African country. has been strengthened.
This strategic partnership focuses on knowledge transfer and the introduction of new digital solutions across the region.
Together, Comera and Beltone aim to develop and deploy advanced products that improve the customer experience across a variety of financial sectors, including payments, consumer finance, small business finance, and supply chain finance.
Dalia Khorshid, Group CEO of Beltone Holding, said: “This partnership is a pivotal step forward in our efforts to strengthen digital access and improve financial services for our customers.” said.
The partnership will leverage the expertise of both companies and bring cutting-edge technology solutions to Egypt as well as other Middle East and North African countries.
MoneyHash partners with Visa
US-based, MENA-focused fintech MoneyHash has announced a new partnership with digital payments company Visa.
This partnership aims to provide a secure and enhanced digital payments experience across the region.
The partnership with Visa will give MoneyHash access to Visa's wide range of digital payment solutions and enhance its service offering with advanced technologies such as network tokenization.
Additionally, this partnership will allow MoneyHash to leverage Visa's vast global reach, capabilities, and renowned security infrastructure.
These elements are critical to Visa's mission to connect the world through an innovative, reliable and secure payments network, which is now expanding further across the MENA region.
This strategic partnership will significantly enhance MoneyHash's ability to provide payment solutions to its customers.
Dubizzle acquires Drive Arabia
Dubizzle Group, the Middle East's leading online advertising platform, has further strengthened its position in the automotive sector across the MENA region with the acquisition of Drive Arabia.
Known for its strong brand presence over the past 20 years, particularly in the UAE and Saudi Arabia, Drive Arabia brings valuable expertise and a loyal customer base to Dubizzle Group.
This acquisition will enable Dubizzle Group to strengthen its automotive advertising services, introduce innovative new products and expand its market reach.
The integration of Drive Arabia is expected to significantly enhance Dubizzle Group's ability to serve the evolving needs of automotive customers across the region.
Egypt’s Swypex secures $4 million in seed round
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Swypex has announced its entry into the financial technology scene with a $4 million seed investment round led by US venture capital fund Accel.
The investment is Accel's first foray into the region's fintech space and includes contributions from Foundation Ventures, Raba Partnership, and several of the industry's leading angel investors.
Licensed by the Central Bank of Egypt, Swypex aims to become the first comprehensive platform aimed at eliminating financial inefficiencies and maximizing business potential in Egypt.
The platform is designed to streamline your financial operations by integrating payments, invoice management, and smart corporate cards into a single system.
Swypex's products are tailored to simplify financial management for businesses, allowing them to automate workflows and facilitate payments.
The corporate cards offered by Swypex are specifically designed for Egyptian businesses to reduce costs, increase operational efficiency, and support scalable growth.
Monshaat graduates 25 startups from Qasim University
The Saudi Arabian General Authority for Small and Medium Enterprises, also known as Monsha'at, announced that 25 startups have successfully graduated from Qasim University's business incubator as part of the University Startup Initiative program.
Business incubators are designed to accelerate the transition of creative ideas and university graduate projects into market-ready startups that can secure investment.
While in the incubator, the startup managed to increase its customer base by 35% and secure two investment rounds totaling approximately R500,000 ($133,317).
Since its launch in 2023, the University Startups Initiative Program has graduated 75 startups in collaboration with three public universities in Riyadh, Al-Ahsa and Qassim.
Startup funds in April decreased significantly
Startup funding in the MENA region fell sharply in April, with just 19 startups raising $55 million.
This is a 78% month-over-month decrease from the $254 million raised in March, but an 87% increase year-over-year, according to Wamda's monthly report.
The biggest funding recipient in April was UAE-based fintech startup Fortis, which secured $20 million in a Series A round.
This was followed by WEE, which raised $10 million in a pre-Series A round, and Tunisia's Qodek, which raised $8 million in a Series B round.
Geographically, UAE-based startups led the funding chart with $32 million distributed across six deals, while Egyptian startups received $8.7 million across five deals.
In contrast, Saudi startups saw a significant drop in investment, raising just $4.8 million across three deals.
By sector, fintech continues to attract the most funding, with four companies raising $25.7 million, of which $20 million went to Fortis alone.
E-commerce startup received $10.5 million in two funding rounds, while AI company Qodek raised $8 million. Additionally, three Software-as-a-Service providers raised a total of $3.5 million.
Significant disparities still exist in terms of gender representation in fundraising.
Only one female-founded company was able to secure $100,000, compared to the $43 million received by companies with male founders, continuing challenges in achieving gender equality in the startup ecosystem became apparent.
