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Welcome to another edition of 🔍 Startup Researcher - Middle East, your essential digest delivering the latest news and premium insights on startups and venture capital across the region 🌍

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📰 Important News

• Abu Dhabi unveiled a $3.5 billion Digital Strategy to become the first fully AI-driven government introducing 200+ AI solutions while creating 5,000 jobs.

• Paymob received the Retail Payment Services License from the Central Bank of the UAE, enabling it to offer comprehensive digital payment solutions.

• Salesforce has opened a new regional headquarters in Riyadh as part of its expansion, committing to train 30,000 Saudi citizens in AI by 2030.

• Paytm’s parent company, One 97 Communications, is planning to expand into the UAE and KSA with up to $2.31 million investment in each market.

• Chinese esports firm Nip Group has signed a $40 million deal with Abu Dhabi Investment Office to establish its headquarters in Abu Dhabi.

💸 Top Funding Rounds

• Saudi proptech company Rize secured $35 million in Series A funding led by Raed Ventures to expand its Rent Now, Pay Later model across Saudi Arabia.

• UAE-based Pluto raised $4.1 million in a pre-Series A round led by Rhino Ventures to expand into KSA and enhance its corporate banking platform.

• Ogram obtained $3 million from Tanami Capital to expand flexible staffing into Saudi Arabia and launch an early wage program for worker satisfaction.

• Saudi Ebana closed a $2.66 million Pre-Series A round led by Esnad Legal Consultancy to expand its solutions and enhance its offerings.

• KSA-based Arable raised $2.55 million in seed funding to develop hydroponic systems for sustainable farming tailored to the GCC's harsh climate.

💰️ Notable Exits

• Saudi digital bank Derayah has announced its IPO offering 20% of its shares on the Tadawul stock exchange, with 49.95 million shares for sale.

• Elm has acquired Thiqah Business Services for $910 million in a deal supported by the Public Investment Fund.

• Watheeq Capital announced a partial exit from Rize, achieving nearly 4x return in 22 months through its Proptech Venture Fund.

• FOAJ Group has fully acquired Nuss, a leading advertising and marketing company, to expand its services in the MENA region.

• Ascentium, backed by Hillhouse Investment, acquired UAE-based Virtuzone to expand its presence in the Middle East.

🏦 About Investors

• 500 Global launched the 500 MENA L.P. fund backed by Jada Fund of Funds, SVC, and Sanabil Investments, focusing on high-growth tech startups in MENA.

• Warba Bank launched a $200 million Islamic fund with support from Maples Group, focusing on senior-secured financing in mid-sized US companies.

• Abu Dhabi's MGX investment firm committed $7 billion to Trump’s AI initiative Stargate, partnering with OpenAI, SoftBank, and Oracle.

• Saudi Arabia’s Kingdom Holding Company is considering investing in TikTok, but its decision depends on whether Elon Musk pursue a bid.

📊 Investment Highlights

Saudi Arabia’s startup scene is scaling new heights in 2024, with significant funding rounds fueling growth across fintech, mobility, foodtech, and AI. From Salla’s $130M pre-IPO round to Intelmatix’s AI-driven expansion, these investments highlight the Kingdom’s push for innovation and economic diversification. Want to see which startups are making waves and attracting top investors? Delve into the full article to explore the biggest deals shaping Saudi Arabia’s entrepreneurial landscape.

🚀 Startup of the Week

Introducing our Startup of the Week 🏆

Rize

Saudi proptech company Rize secured $35 million in Series A funding led by Raed Ventures, with participation from SEEDRA Ventures, Aqara Platform, JOA Capital, NAMA Ventures, and HALA Ventures. Founded in 2021 by Ibrahim Balilah and Mohamed Al-Frahi, Rize offers a "Rent Now, Pay Later" model, enabling tenants to pay annual rent in monthly installments while ensuring landlords receive full payments upfront. The funding will drive Rize’s expansion across Saudi Arabia, particularly in the Western and Eastern regions, and enhance leasing automation via its platform. Additionally, Rize secured a debt-financing partnership with Partners for Growth to support its growth, with its RNPL service also launching on Aqara Platform.

💼 Investor of the Week

Introducing our Investor of the Week 🏆

500 Global

500 Global, formerly known as 500 Startups, has launched the 500 MENA L.P. fund, reinforcing its commitment to high-growth tech startups across the MENA region. Backed by Jada Fund of Funds, Saudi Venture Capital (SVC), and Sanabil Investments, the fund aims to address the critical funding gap beyond the seed stage. Led by Amjad Ahmad, a seasoned investor with over $1 billion in venture and growth investments, the fund will support startups with proven product-market fit and significant growth potential. 500 Global has been an active player in MENA since 2012, with investments in over 270 companies, including Eyewa, Floward, Foodics, and Lean Technologies.

 🤑 Opportunity Radar

Call for Applications: Misk Accelerator

Apply to the Misk Accelerator by February 27, 2025, and take your seed-stage tech startup to the next level. This zero-equity, three-month hybrid program provides tailored mentorship, business development support, and direct equity investment opportunities to help startups scale in Saudi Arabia. With access to a global and local network of investors, founders, and industry leaders, participants will gain invaluable insights and resources. Cohort 11 kicks off on April 13, 2025, so don’t miss your chance to be part of one of KSA’s leading accelerator programs.