Happy Friday, friends 👋 

A quote from the wise, wry, contrarian Silicon Valley VC and Texan deal maker, Bill Gurley to start your morning:

“I can’t make you the smartest or the brightest, but it’s doable to be the most knowledgeable. It’s possible to gather more information than somebody else.”

Enjoy this week’s edition! 👇

This week’s round-up is a 6 min read:

•  💸 Dubai-based Flow48 secures $69M Series A to expand into KSA

• 🚙 UK’s Pinewood acquires Dubai-based autotech AI Seez for $46.2 million

• 🇶🇦 5 VCs to set up regional hubs in Qatar under QIA’s $1BN fund of funds

• 🤖 Venture builder Disrupt.com to invest $100m to fuel AI-first startups from the UAE

• 🔈 Catch-up on Episode 26 of the VC React Podcast

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🚀 Startup funding round-up

Flow48 (🇦🇪 UAE), a fintech company offering revenue and invoice-based financing solutions to SMEs, has secured $69 million in a Series A round combining debt and equity, led by Breega, with participation from 212, Speedinvest, Daphni, Endeavor Catalyst, Evolution Ventures, and Plus VC.

Journify (🇦🇪 UAE), a marketing technology startup helping businesses optimise online advertising with AI-powered customer data activation, has secured $4 million in funding led by Silicon Badia, with participation from RZM Investment and other strategic investors.

CQR (🇸🇦 Saudi Arabia), a cybersecurity company enhancing AI-driven security solutions, has raised $3 million in funding led by Shorooq.

Byanat (🇴🇲 Oman), a AI-driven digital infrastructure observability platform, has secured an undisclosed Pre-Series A round, led by Golden Gate Ventures, with participation from Waad Investment، Qatar Development Bank, Oryx Fund، Plus VC (+VC)، Omantel Innovation Labs, and a group of angel investors.

Lillia (🇶🇦 Qatar), a healthtech company developing AI-driven solutions for chronic disease management, has received a $1.7 million grant from the Qatar Research, Development, and Innovation (QRDI) Council.

Omnispay (🇦🇪 UAE), a fintech startup specialising in SME payments, has raised $1.5 million in a Seed round led by Mercatus Capital, with participation from regional and international investors.

Lola (🇧🇭 Bahrain), a startup founded as part of Calo’s entrepreneur in residence initiative, that enables users to customise and order cakes through its mobile app, has raised $1.3 million in a pre-seed round led by Vision Ventures and Plus VC, with participation from strategic angel investors.

Premium deep-dive

🎯 How Tabby bootstrapped customer acquisition↗

Analysing how MENA's most valuable fintech company embedded itself into hearts, minds, and checkouts.

Acquisition

🚙 UK’s Pinewood acquires Dubai-based autotech AI Seez for $46.2 million

🚙 UK-based Pinewood.AI is acquiring Dubai-based automotive AI startup Seez for $46.2 million, finalising its ownership at 100%. Pinewood had previously secured 9.1% of Seez through a $4.2 million investment in September 2024.

⏮️ Background

Founded in 2016 by Tarek (ex-Wamda Capital) and Andrew Karbit, Seez initially launched as a “Shazam for cars,” attracting almost three million users before shifting to an automotive marketplace model.

Riding the online automotive retail boom alongside giants like Carvana and Cazoo, Seez later faced a downturn in 2022 when market sentiment changed. Despite setbacks, the founders adapted by rebuilding their technology and evolving into a fully AI-powered SaaS platform.

Backed by investors like B&Y Venture Partners, Phoenician Funds, Wamda Capital, and Nuwa Capital, Seez raised around $18 million over its 9 years, expanded into 16 global markets and reached $4.4 million in annual recurring revenue by December 2024.

Today, Seez’s proprietary technology includes an AI virtual assistant, e-commerce and omnichannel modules, and AI-driven digital marketing services.

⚙️ What Seez brings to Pinewood

Seez’s AI solutions will bolster Pinewood’s cloud-based software suite for automotive retailers.

Pinewood is backed by Lithia Motors, the world’s largest dealer group, and intends to integrate Seez’s technology across its 1,300 dealership rooftops.

The focus will be on improving customer service, vehicle appraisal, and inventory management, particularly in North America, where 80% of dealers already use AI tools.

🔮 Deal breakdown and timeline

The $46.2M package comprises $22.8M in cash, $3.9M for ESOP holders, and $6.6M in Pinewood shares subject to a six-month lock-up.

The transaction is expected to close by March 19, 2025, positioning Pinewood – active in 21 countries – to expand its AI-powered automotive solutions globally and meet rising international demand.

💰 VC

🚀 UAE-based venture builder Disrupt.com, founded by brothers Aaqib, Uzair, and Umair Gadit, has committed $100 million to build and back AI-first startups across AI, cybersecurity, Web 3.0, automotive technology, and retail innovation. The founders previously achieved a $350 million exit with their bootstrapped startup Cloudways, acquired by NYSE-listed DigitalOcean in 2022 – the largest tech exit in Pakistan’s history. Disrupt.com has already deployed $40 million across its portfolio, including four in-house growth-stage companies and seven early-stage investments. Current portfolio highlights include ZigChain, cybersecurity venture PureSquare, and UAE-based fitness apparel brand Squatwolf.

🇶🇦 Following up from our piece last week, QIA has announced that six VC firms – B Capital, Deerfield, Rasmal Ventures, UTOPIA, Builders VC, and Human Capital – will establish regional headquarters in Qatar under its $1 billion Fund of Funds programme. Launched in February 2024, the FoF targets both international and regional VC funds, with a focus on tech and healthcare. B Capital, a tech-focused investor, and healthcare-focused Deerfield recently joined the four other firms, all of which will invest internationally, regionally, and locally to help close the funding gap for entrepreneurs.

🏏 VC firm, Yashaa Global Capital has received its Financial Services License from ADGM’s FSRA, formalising its Abu Dhabi base. Backed by Indian cricketer Shikhar Dhawan and other prominent partners, the fund targets $75 million (with a USD 25 million option) for investments in SportsTech, fitness, esports, media, and sports leagues. Formerly known as Da One Global Ventures, it rebranded to align with its global expansion and focus on innovation.

🇸🇦 Al Madinah Angels – a consortium formed by Value Makers Studio (VMS), Al Madinah Chamber, and Numu Angels—has launched in Saudi Arabia’s Al Madinah Al Munawarrah as part of the $10 million Al Madinah Ventures Initiatives. Connecting founders with capital, mentorship, and strategic partnerships, it aims to drive innovation and economic growth in the region.

 🤝 Acquisitions

💸 Egyptian fintech Fawry has invested $1.6 million in Dirac Systems, Virtual CFO, and Code Zone, acquiring equity stakes of 51.0%, 56.6%, and 51.0% respectively. Founded in 2008, Fawry is Egypt’s largest e-payment platform. These acquisitions, part of its “Fawry Business” ecosystem, expand its reach into ERP, financial services, and software development, strengthening Fawry’s role in driving Egypt’s digital transformation.

🏦 Egypt-based fintech Basata has increased its stake in Jordan’s MadfoatCom to 25%, alongside a consortium of Jordanian financial institutions—now collectively holding over 50%. Established in 2011 by founder Nasser Saleh, MadfoatCom is Jordan’s leading online, real-time bill presentment and payment platform. Basata’s move aims to expand digital financial services and boost payment infrastructure in Jordan, supporting broader financial inclusion.

✈️ New regional entrants

💵 Cashfree Payments, a Bengaluru-based fintech processing over $80 billion in annual transactions, has secured $53 million in fresh funding led by Korean digital entertainment giant KRAFTON and its existing backer, Apis Growth Fund II (managed by Apis Partners). Part of this capital will fuel an accelerated push into the UAE and wider Middle East, where Cashfree has already been active through a strategic partnership with local payment gateway Telr.

🧍 People

🤖 AI-powered mobile observability platform Instabug has appointed Jim Douglas as CEO, with co-founder Omar Gabr transitioning to President. Gabr, who co-founded the Egypt-born startup in 2012 with Moataz Soliman, led the company for 13 years, scaling it into a leading mobile app performance monitoring platform. Douglas, a five-time CEO with leadership experience at Armory and Wind River, will focus on scaling Instabug’s AI-powered platform to enhance real-time mobile app monitoring and optimization. Instabug has raised over $50 million, including a $46 million Series B from Insight Partners, Accel, and others, providing developers with tools to improve app quality, test new features, and gather user feedback.

💸 After nearly five years, Djamel Mohand is leaving his role as COO of Foodics to start his own venture. While details remain under wraps, he will continue advising Foodics’ M&A strategy, as the company earmarks $100M for acquisitions over the next three years. Last week, Foodics acquired UK-based Solo and invested in three startups.

💰 VC React Podcast: Episode 26

🎧 In this week's episode of the VC React Podcast, a rare surge of startup acquisitions sweeps MENA, and with Qatar attracting major VCs like Human Capital, Utopia, and Builders VC, we debated whether Doha is emerging as a deeptech hub and how its startup ecosystem strategy stacks up against Saudi and the UAE.