Fintech: MENA investors 2019/2020 | Investera | Investment Management Solution

Fintech: MENA investors 2019/2020

27October, 2020

The Fintech industry in the MENA region

Since 2015 MENA-based Fintech startups have witnessed an immense growth with a total of $237M worth of investments. According to publication by ADGM, 2017 was the breakout year for Fintech investments with a total of 38 deals across the region. As the industry gained popularity and the interest of investors both in the region and outside, the Fintech industry ranked 1st in number of deals in 2018 and reached a total funding of $346 by 2019. The United Arab Emirates became the region’s largest Fintech hub as it holds the highest number of Fintech startups, followed by Egypt.

As per Milken Institute, a non-profit think tank, the Fintech industry in the Middle East is growing at a CAGR of 30% and estimates that 465 Fintech startups will raise over $2 billion in venture capital funding by 2022 compared to the initial 30 Fintech startups that raised approximately $80 million in 2017.

Here, we selected some investors that invested in MENA-based Fintech companies between 2019 and 2020. 

 

  • Wamda Capital

Wamda Capital, founded in 2014 by Fadi Ghandour, is the MENA region’s most active venture capital firm investing in exceptional entrepreneurs building the region’s most promising high growth technology businesses. Wamda Capital invests at the growth and seed stages with the aim of taking portfolio companies through successive rounds of financing through to exit.
Since 2019, the venture capital leader has shown great interest in the Fintech industry.

Here are Wamda Capital’s recent investments in Fintech:

Company Funding Stage Amount in USD Date Lead Investor
Penny Software Seed 1,400,000 21st Sept 2020 No
Liwwa Series A 6,000,000 17th Dec 2019 No
FlexxPay Series A 1,500,000 8th Dec 2019 Yes
Tabby Seed 2,000,000 11th Nov 2019 No
YallaCompare Series C 8,000,000 6th Jan 2019 Yes

With 67 investments, Wamda Capital is an investor in various industries. Some of which are: E-commerce/marketplace, retail, transportation, digital media and publishing industries.

 

  • Middle East Venture Partners (MEVP)

MEVP, founded in 2010 by Walid Hanna, is a Middle East-focused venture capital firm that invests in the early and growth stages of innovative companies run by talented entrepreneurs in the Middle East Region with a focus on the GCC and Levant countries.

With offices in Beirut, Dubai, Bahrain and Riyadh and more than $300 million in Assets Under Management, MEVP is the largest and most established VC firm in this region.

Here are MEVP’s recent investments in Fintech:

Company Funding Stage Amount in USD Date Lead Investor
Go Rise Venture Round 1,400,000 23rd Mar 2020 Yes
Sarwa.co Series A 8,400,000 22nd Jan 2020 No

With 59 investments, MEVP is an investor in diverse industries that include E-commerce, SaaS, lifestyle, transportation, and healthcare.

 

  • Shorooq Partners

Shorooq Partners, founded in 2016 and regulated by ADGM, is a leading seed-stage venture capital fund based in Abu Dhabi. The VC invests in entrepreneurs in the Middle East, North Africa and Turkey. They aim to embark with Founders on their journey as early as the pre-seed stage. Shorooq’s mission is to drive the tech-startup innovation landscape in the region. The Investor of the Year Award 2019 winner holds more than 25 startup portfolios across the fintech, platform and software industries.

Here are Shorooq Partner’s recent investments in Fintech:

Company Funding Stage Amount in USD Date Lead Investor
Lean Technologies Seed 3,500,000 8th  Jul 2020 No
Sarwa Co. Series A 8,400,000 22nd Jan 2020 No

With 34 investments, Shorooq Partners is an investor in diverse industries that include E-commerce, F&B, Internet, Information Technology, agriculture, and transportation.

 

  • Raed Ventures

Raed Ventures, founded in 2015, is a Saudi venture capital firm that provides funding for the seed and early-stage startups in KSA and MENA. They invest in entrepreneurial teams shaping the market landscape and we provide MENA startups an opportunity to work in the Saudi & GCC markets. It helps startups in building and executing their plans through collaborations with their sister companies and leveraging their market knowledge and network.

 

Here are Raed Ventures’s recent investments in Fintech:

Company Funding Stage Amount in USD Date Lead Investor
Tabby Seed 7,000,000 8th Jun 2020 Yes
Lean Technologies Seed 3,500,000 8th  Jul 2020 Yes

With 29 investments, Raed Ventures is an investor in E-commerce, Social Media, Education, Transportation, and Mobile Applications.

 

  • Global Ventures

Global Ventures is a growth-focused venture capital firm that focuses on enterprise technology investments. It is driven by a belief in local sourcing and global scaling. Global Ventures is dedicated to investing in the people behind the companies, fueling their growth and success.

The company creates bridges between industry veterans and disruptive innovators, between the west and the east. It mindfully allocates capital and leverage expertise to catalyze growth and create the next generation of success stories. In 2020, Global Ventures has claimed interest in innovation and monitoring the Fintech industry.

Here are Global Venture’s investments in Fintech:

Company Funding Stage Amount in USD Date Lead Investor
Paymob Venture round 3,500,000 11th Aug 2020 Yes
Lean Technologies Seed 3,500,000 8th Jul 2020 No
Mamo Pay Seed 1,500,000 7th Apr 2020 No

With 17 investments, Global Ventures is an investor in various industries. Some of which are: Information Technology, E-commerce, F&B and healthcare.

 

Fintech post Covid-19

With the outbreak of the coronavirus, it is only possible that the industry’s transition will accelerate to accommodate the challenges that people face and change in consumer behavior. Services offered by the financial industry will facilitate digital payments and people manage finances. This pandemic sets an occasion for companies to speed up the digitisation of financial services.

 

Key Takeaways

  1. Fintech is an ongoing growing industry in the MENA region.
  2. The United Arab Emirates is the region’s largest Fintech hub.
  3. The pandemic outbreak sets a great opportunity for MENA-based Fintech companies to grow.

 

 

Shahenda Ibrahim
Researcher at Investera

 

Resources:
People and company profiles:
https://plus.investera.com/
https://www.adgm.com/documents/publications/en/adgm-mena-fintech-venture-report-2019.pdf?la=en&hash=B4CBB631E8B671EA0F7E4135E9BE85B6
https://www.dubaifuture.ae/wp-content/uploads/2020/08/DFF-Covid19-FinTech-ENG.pdf