Latest news with #Magnitt
Bloomberg
21 hours ago
- Business
- Bloomberg
Bahoshy: Volatility in Market Causing IPO Indecision
Startups in the Middle East nearly doubled their fundraising in the first half of the year, defying a slowdown in venture capital investment in emerging markets brought on by economic uncertainty and investor caution. About $1.35 billion in VC funding was funneled to companies in the Middle East from January through June, led by Saudi Arabia and the United Arab Emirates, according to data platform Magnitt. Their Founder & CEO, Philip Bahoshy spoke exclusively to Bloomberg's Horizons Middle East and Africa anchor Joumanna Bercetche. (Source: Bloomberg)
Mint
a day ago
- Business
- Mint
Middle East Startups Double Fundraising to Defy Broad Slowdown
(Bloomberg) -- Startups in the Middle East nearly doubled their fundraising in the first half of the year, defying a slowdown in venture capital investment in emerging markets brought on by economic uncertainty and investor caution. About $1.35 billion in VC funding was funneled to companies in the Middle East from January through June, led by Saudi Arabia and the United Arab Emirates, according to data platform Magnitt. Middle East activity was anchored by government support, new funds and mega deals for companies including Saudi Arabia's newest unicorn, quick-delivery firm Ninja. AI commitments and deals also put the region at the 'center of global investment momentum,' Magnitt said. The haul stands in stark contrast to global emerging venture markets, where funding dropped to $3.98 billion — the weakest first half since 2017. The pullback was most acute in Southeast Asia amid uncertainty around interest rates, geopolitics and tariffs, according to the firm. 'Unless macro volatility eases significantly or inflation drops faster than expected, private capital flows into emerging markets will remain selective,' Magnitt said. 'The most resilient EVMs will be those with strong local funding ecosystems, sovereign support and low exposure to external shocks.' Saudi Arabia remains the powerhouse of VC fundraising in the Middle East, having raised more investment capital than any other country in the region for the third straight first half of the year. The kingdom saw over $245 million in new fund launches, with some backed by the Saudi sovereign wealth fund in a further sign of commitment to supporting startups at the state level. Momentum across the Middle East was reinforced by US President Donald Trump's visit to Saudi Arabia, the UAE and Qatar in May that resulted in a wide range of deals across sectors including aviation and AI, Magnitt said. Fintech remained the favored sector across the broader Middle East and North Africa in the first half, with funding tripling year over year and startups focused on payments and lending dominating activity. Investor appetite returned to Series A and B funding rounds, according to Magnitt. In mergers and acquisitions, the Middle East accounted for about 50% of deals across emerging venture markets, the highest share in two years, Magnitt said. That came as deal flow fell in Southeast Asia. 'The reversal highlights the fragile nature of recovery in EVM exit markets,' Magnitt said. 'Unless macro volatility eases and financing conditions improve, M&A activity is likely to remain sensitive.' More stories like this are available on
Bloomberg
a day ago
- Business
- Bloomberg
Middle East Startups Double Fundraising to Defy Broad Slowdown
Startups in the Middle East nearly doubled their fundraising in the first half of the year, defying a slowdown in venture capital investment in emerging markets brought on by economic uncertainty and investor caution. About $1.35 billion in VC funding was funneled to companies in the Middle East from January through June, led by Saudi Arabia and the United Arab Emirates, according to data platform Magnitt.
Fintech News ME
21-05-2025
- Business
- Fintech News ME
Fintech Leads MENA Startup Investment in Q1 2025
In Q1 2025, fintech startups dominated venture capital (VC) activity in the Middle East and North Africa (MENA), raising the three largest transactions of the quarter, according to new data released by Magnitt, a data and intelligence platform tracking venture capital (VC) and private equity across the Middle East. This trend underscores the sector's continued momentum and growing maturity, as high-growth fintechs broaden their offerings, expand into new markets, and position themselves for future public listings. Tabby: building a broad fintech ecosystem Tabby, a leading buy now, pay later (BNPL) platform and shopping app in the region, secured the largest deal of Q1 2025 with a US$160 million Series E financing round raised in February. The round gave Tabby a US$3.3 billion valuation, making it the most valuable tech startup in MENA. With the proceeds, Tabby will accelerate its transformation beyond BNPL into a comprehensive fintech ecosystem, focusing on digital spending accounts, payments, cards, and money management tools, in particular, the company said. This builds on key recent developments, including Tabby's acquisition of Tweeq, a Saudi Arabia-based digital wallet, as well as the rollout of Tabby Card for flexible payments, and Tabby Plus, a subscription program. The Series E round is also positioning Tabby strongly as it prepares for its initial public offering (IPO), which is anticipated to take place within the next 18 months. Saudi Arabia is being considered among potential listing venues, and the company has hired HSBC, JP Morgan, and Morgan Stanley, to work on the IPO, according to a source with knowledge of the matter. Founded in 2019 and based in Saudi Arabia, Tabby allows customers to purchase products online or in-store and split the payment over four monthly installments. The company, which currently operates in Saudi Arabia, the United Arab Emirates (UAE), and Kuwait, claims more than 15 million registered users, over 40,000 retail partners, and over US$10 billion in annualized sales volume. AppliedAI: expanding further into the EU and the US AppliedAI, an insurtech startup based in Abu Dhabi, secured the second largest transaction of Q1 2025, raising a US$55 million Series A in February. The company aims to position itself as a key artificial intelligence (AI) infrastructure provider for highly regulated industries, particularly healthcare and insurance. With a fresh funding, AppliedAI is focused on scaling its technology and workforce, and expand further into the US and European markets. Founded in London in 2021, AppliedAI leverages a combination of artificial intelligence (AI) and human review to process medical billing records and insurance claims faster and more accurately than traditional outsourcing firms. Among its notable clients are Abu Dhabi's M42 Healthcare Group, US law firm Morgan & Morgan, and UK-based drug safety firm Qinecsa. AppliedAI relocated to Abu Dhabi in 2022 to benefit from government grants. NymCard: an embedded finance leader in MENA NymCard, an embedded finance platform in MENA, secured the third biggest transaction of Q1 2025, raising in March a US$33 million Series B funding round. Headquartered in Abu Dhabi, NymCard provides a full-stack, application programming interface (API)-first payment infrastructure for banks, fintech companies, enterprises, and telecom providers to issue cards, process transactions, offer digital lending, and support real-time money movement. To date, the company has partnered with more than 50 leading firms to deliver personalized financial offerings across the region. NymCard's strategy is to cement its position as the leading embedded finance infrastructure provider in MENA by leveraging its proprietary processing platform and switching tech, as well as its deep regional integration. With the proceeds, the company said it will deepen its presence across the 10+ MENA markets it currently serves, and strengthen its payment infrastructure solutions. Funding rebounds in MENA Fintech funding in MENA is showing signs of recovery this year. In Q1 2025, startups in the sector raised a total of US$372 million across 42 deals in Q1 2025, more than 50% of 2024 capital, according to Magnitt. This signals a sharp rebound in investor confidence, and sets the stage of a strong year 2025. This rise in fintech funding reflects a broader resurgence in MENA's startup ecosystem. In Q1 2025, MENA's tech startups amassed a total of US$678 million across 133 transactions, its highest level since Q4 2023. Saudi Arabia and the UAE continued to dominate the region's VC landscape, together accounting for 88% of deal value and 76% of deal count in Q1 2025. Saudi Arabia topped the chart by total funding, securing US$750 million, while the UAE led in deal volume with 188 transactions.
Fintech News ME
07-05-2025
- Business
- Fintech News ME
UAE and Saudi Arabia Lead MENA VC Increase; Fintech Remains Top Focus
Venture capital (VC) investment in the Middle East and North Africa (MENA) continues to rebound this year, driven by a rise in smaller funding rounds, strong investor focus on Saudi Arabia and the United Arab Emirates (UAE), and sustained support for fintech. According to new data from Magnitt, a financial data platform focused on emerging markets across MENA, Pakistan, and Turkey, VC funding in the region reached US$678 million in Q1 2025, representing a 58% year-over-year (YoY) increase and marking the region's highest-funded quarter since Q4 2023. Small rounds below US$100 million led VC investment activity, accounting for 76.4% of the region's total funding in Q1 2025 with US$518 million. In particular, the quarter saw a notable increase in mid- to large-sized rounds, with the US$5 million – US$20 million and US$20 million+ ranges growing by seven points. Series A and Series B investments surged as well, with funding recording a fivefold YoY increase, growing from US$54 million in Q1 2024 to US$278 million in Q1 2025. In Q1 2025, Saudi Arabia and the UAE continued to dominate the region's VC landscape, together accounting for 88% of deal value and 76% of deal count. This builds on momentum from 2024, when the two countries led VC investment in MENA. Saudi Arabia topped the chart by total funding, securing US$750 million, while the UAE led in deal volume with 188 transactions. Fintech remains top focus This year, fintech remains MENA's most attractive sector for VC investment, capturing 57% of total funding in Q1 2025. The quarter was marked by significant rounds involving leading players across the region. Tabby, a buy now, pay later (BNPL) fintech unicorn from Saudi Arabia, raised a US$160 million Series E funding round in February, pushing its valuation to US$3.3 billion. The company said it would use the proceeds to expand its financial services, including digital spending accounts, payments, cards, and money management tools. NymCard, a prominent embedded finance platform from the UAE, secured a US$33 million Series B funding round in March to deepen its presence across 10+ markets in MENA, and strengthen its payment infrastructure solutions across its three core verticals, namely card issuing processing, embedded lending, and money movement. NymCard is partnered with more than 50 banks, fintech startups, and enterprises to deliver personalized financial offerings across the region. Khazna, a financial super-app from Egypt, raised a US$16 million pre-Series B funding round in February to support its growth, with plans to apply for a digital banking license in Egypt and expand into the Saudi market. The Khazna platform integrates financial services such as loans and insurance directly into payroll accounts, alongside direct delivery of unsecured loans to gig economy workers. It claims 500,000 customers. Fintech, a historically leading vertical Fintech was also the most funded tech sector in MENA last year, including debt, according to a recent report by MENA startup data platform Wamda. The space captured 30% of total investment, continuing a trend that began in 2022. Last year, fintech attracted US$700 million in funding across 119 startups, highlighting its continued appeal to investors. Investor appetite in fintech remained strong in April, with the sector continuing to dominate the investment landscape. Fintech companies in MENA raised US$44 million last month, accounting for 19% of total funding of US$228.4 million, according to Wamda. Notable rounds included Fuse Finance's US$6.6 million seed round, Zest Equity's US$4.3 million pre-Series A, and Erad's US$16 million pre-Series A. Fuse Finance is an online fintech platform providing payout solutions for businesses from the UAE, Zest Equity is an online platform for VC investment management from the UAE, and Erad, which is based in Saudi Arabia, provides working capital to online businesses.
