Arab News, Sat, Apr 27, 2024 | Shawwal 18, 1445
Egyptian startups secure funding to boost expansion to Saudi Arabia following a period of stagnation
Saudi Arabia:
Startups in Egypt have started to gain
momentum with several ventures securing funding to boost expansion efforts to
the Kingdom.
Following a period of startup funding stagnation,
Egyptian founders have made their way back to the regional venture capital space
with a flurry of investment deals and expansion strategies already in place.
Egyptian fintech startup Waffarha has secured a
seven-figure seed round from Value Makers Studio to expand its footprint.
Founded in 2012 by Tarek Magdy, the platform
offers significant discounts, with daily deals ranging from 50 percent to 90
percent.
The new capital will enable Waffarha to enhance
its technology, recruit talent, and expand into Saudi Arabia and additional
markets.
Moreover, in 2018, Fawry for Banking Technology
and Electronic Payments, one of Egypt’s largest financial institutions, acquired
a share of 30 percent of the company.
The company claims to boast a network of over
1,000 merchants and over 3,000 stores that cater to more than 5 million
customers, without any subscription fees.
Over the last 12 years, Waffarha claims to have
emerged as a top-tier lifestyle website and mobile app.
Egyptian HRtech startup Bluworks secures $1m in
pre-seed funding
Bluworks, an HR and Software-as-a-Service
solutions provider based in Egypt, has raised $1 million in pre-seed funding led
by Khawarizmi Ventures and included Camel Ventures, Acasia Ventures, and angel
investors.
Founded in 2022 by Farah Osman, Hussein Wahdan,
and Nour Ahmadein, Bluworks aims to optimize costs for businesses through
data-driven decision-making.
“With so many HR softwares on the market, not one
is built to manage blue-collar workers,” Wahdan said.
“Since the process of managing this type of
workforce is so manual, errors frequently occur, leading to penalties and
deducted salaries with no oversight from the workers, causing them to leave and
ultimately contributing to high turnover rates,” he added.
“Currently, companies can spend about 7-10 days
just closing their payroll accounts, but with Bluworks, this time can be cut
down to one day - all while leveraging data and insights on their workforce,” he
stated.
The company aims to utilize the funding to support
its product development goals, expand its presence, and grow its team.
Egypt-based fintech Bokra closes $4.6m pre-seed
funding round
Bokra, an emerging fintech startup from Egypt, has
secured $4.6 million in pre-seed funding, led by DisrupTech Ventures and SS
Capital.
Founded in 2023 by Ayman El-Sawy, Bokra offers
diversified investment solutions for retail and SME investors.
The funds will support the launch of the Bokra
app, expansion of its investment products, and scaling operations across the
Middle East and North Africa region.
“We are dedicated to accelerating financial
inclusion and elevating investment awareness across MENA,” El-Sawy said.
“In a region where financial needs and aspirations
are ever-changing, Bokra is poised to become the preferred investment platform
for both individuals and small and medium-sized enterprises looking to diversify
their fractional ownership portfolio in a simple, trackable and informed way,”
he added.
Egyptian startups win big in Saudi-Egyptian
program
Ten Egyptian startups have received awards from
the VMS Bridge program, aimed at enhancing connections between Egypt and Saudi
Arabia’s entrepreneurial ecosystems.
Winners included Amanleek, Farhy, Sprints,
Career180, and Jamaykaa, which will explore investment opportunities during a
4-day visit to the Kingdom.
Other winners, Notchnco and Neqabty, received free
company licenses in Saudi Arabia, and AgriCash, ReNile, and ICareer won access
to Arweqah’s training programs.
Jordan-based healthtech startup Arab Therapy
secures $1m seed funding
Arab Therapy, a Jordan-based mental health
platform, has raised $1 million in seed funding, led by Flat6Labs and Vision
Health Pioneers, with participation from international angel investors.
Founded in 2021 by Tareq Dalbah, Omar Koudsi, and
Hekmat Al-Hasi, Arab Therapy connects users with licensed mental health
professionals.
The investment will facilitate the company’s
market expansion and the initiation of business to business sales operations.
TVM Capital Healthcare invests $17m in Neurocare
Group AG
TVM Capital Healthcare, based in the UAE, has
invested $17 million into Neurocare Group AG, a Munich-headquartered healthtech
specializing in personalized mental healthcare.
The investment will support Neurocare’s expansion
plans in the US and Saudi Arabia and fund the development of new hardware and
software innovations, enhancing their clinical solutions.
UAE-based logistics startup Shorages secures $1m
for expansion
Shorages, a UAE-based logistics startup, has
raised $1 million in a pre-series A funding round led by Joa Capital’s S3
Ventures Fund.
Founded in 2019 by Rayan Osseiran, the company
provides fulfillment solutions in the UAE and Saudi Arabia for e-commerce
platforms.
The company aims to utilize the funding to help
expand its warehouse operations across the Gulf region.
UAE e-commerce startup WEE secures $12m in
funding
UAE-based e-commerce startup WEE has concluded a
$12 million pre-series A funding round, facilitated by SIG Investment.
Founded in 2021 by Anastasia Kim, Oleg Dashkevich,
and Sergey Kolikov, WEE is an online marketplace that offers below 15-minutes
delivery services.
The investment will be used to spearhead WEE’s
logistics capabilities, accelerate growth, and expand its team.
Turkish fintech app Midas closes $45m funding
round to boost MENA expansion
Turkish fintech app Midas closed a $45 million
funding round by Portage, a global investment platform, supported by
International Finance Corporation, Spark Capital and Earlybird Digital East
Fund.
Founded by Egem Eraslan, the company allows users
in Turkiye to invest in Turkish and US equities.
The startup is aimed at Turkiye’s retail investor
market and claims to have more than 2 million users. The company claims to
charge significantly lower transaction and commission fees for Turkish customers
who want to invest in US or Turkish stocks.
Midas has plans to expand beyond Turkiye, and aims
to target countries in the MENA region, according to a report by TechCrunch.
Midas also plans to use the new funding to roll
out three new products in cryptocurrency trading, mutual funds and savings
accounts.
UAE’s Maalexi signs agreement with Etihad Credit
Insurance
Maalexi, a UAE-based risk management platform
focused on SME agri-businesses, has entered into a strategic credit insurance
agreement with Etihad Credit Insurance, the UAE’s federal export credit company.
This collaboration will enable Maalexi to utilize
ECI’s extensive trade credit solutions and services, enhancing the
competitiveness of regional SMEs in the food and agriculture trade sectors, both
locally and internationally.
The partnership aims to reduce market entry
barriers, support Maalexi’s goal of increasing SME participation in the
cross-border trade of agricultural produce, and contribute to food security in
the UAE.