Riyadh, the capital of Saudi Arabia, recently became a beacon for entrepreneurship as it hosted LEAP 2024, a premier startup and technology event that showcased an upswing in investment activities for burgeoning businesses.
Announcements at the event revealed an array of new venture capital funds poised to invigorate sectors throughout Saudi Arabia and the wider Middle East and North Africa (MENA) region.
Investcorp is at the forefront of these developments, launching a colossal $500 million fund designed to propel growth-stage ventures in the Kingdom, further bolstered by a $35 million injection from Saudi Venture Capital.
Oasis Capital didn’t lag behind, announcing its intentions to inaugurate a $100 million fund aimed at early-stage international startups.
In the realm of gaming and esports, the Saudi Esports Federation, in collaboration with the Social Development Bank and the National Technology Development Program, is preparing to unveil two funds as part of its Gaming and Esports Sector Financing Program.
Additionally, Saudi venture capital firms Merak Capital and Impact46 disclosed their new funds of $80 million and $40 million, respectively, while Plug and Play Tech Center is entering with a $50 million fund targeted at fostering software and tech ventures in the region.
Simultaneously, Takamol Ventures announced a $53 million venture capital fund at LEAP, which aims to empower early-stage tech companies and drive innovation.
Further expanding the investment landscape, Fahad Al-Hussain, a partner at US-based Seedford Partners, revealed plans for a space-oriented fund ranging between $100 million to $150 million to support both international and local ventures in the sector.
Additionally, Bahrain-based Arcapita Capital recently closed its $500 million Saudi Logistics Fund III, while Unifonic prepares to unveil a $15 million fund focused on SaaS and B2B startups across MENA, Pakistan, and Turkiye, indicating a widening of investment perspectives.
On the SaaS front, Salla of Saudi Arabia secured a hefty $130 million pre-IPO round led by Investcorp, with Sanabil Investment and STV also participating. Co-founders Nawaf Hariri and Salman Butt have positioned Salla as a key player in enabling merchants to swiftly create online e-commerce shops since its inception in 2016.
The investment was funneled through the Investcorp Saudi Pre-IPO Growth Fund LP, a strategic fund dedicated to infusing growth capital into a selection of companies predominantly located in Saudi Arabia.
“This investment propels us forward in our ongoing mission to open opportunities and empower individuals, SMEs, and enterprises to start and expand their businesses both within and beyond Saudi Arabia. We are committed to delivering innovative, customer-centric solutions that simplify and enhance the e-commerce experience for our merchants,” commented Hariri.
Elsewhere in the UAE, HRtech startup RemotePass concluded a series A funding round, garnering $5.5 million with 212 VC at the helm. The round included contributions from a diverse group of investors such as Endeavor Catalyst, Khwarizmi Ventures, and Oraseya Capital, among others.
Since its founding in 2020 by Kamal Reggad and Karim Nadi, RemotePass specializes in enabling businesses to efficiently onboard, manage, and pay their international workforce, especially in locales without a local legal presence.
Moving on to the proptech sector, Saudi Arabia’s Buildnow secured a $9.4 million seed funding, with both equity and debt components, led by Raed Ventures and Khwarizmi Ventures. Notable participation also came from global VCs and local angel investors, including Careem co-founder Abdulla Elyas.
Founded in 2022 by Hisham Al Saleh, Rahat Dewan, and Abdulla Sheikh, Buildnow offers a novel build-now-pay-later model that benefits the construction industry by streamlining supply chain and financial operations.
With the new capital infusion, Buildnow is poised for significant growth, planning to attract and hire global talent and pursue expansion.
Moreover, Saudi Arabia’s BRKZ has notched an $8 million series A funding co-led by 9900 and BECO Capital, with additional support from Wa’ed Ventures, Knollwood Investment Advisory, RZM Investment, and MISY Ventures. Founded in 2022 by Ibrahim Manna, BRKZ leverages its platform to offer a wide selection of suppliers and materials for the construction industry.
Within the fintech space, Saudi startup Rabeh Financial wrapped up an $800,000 seed round, in collaboration with Mjalis Investment Co. and angel investors, valuing the company at $8 million. The startup, established in 2022 by Mohammed Al-Salmi and advisors, focuses on enhancing trading experiences using AI and data analytics.
Last but not least, Saudi Arabia’s RasMal acquired UAE’s Pentugram to expand into private capital investment management solutions for an undisclosed sum, while Zetta Technologies raised $1.5 million in pre-seed funding from CoreVision, offering tech services on a subscription basis.