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Happy Friday! Another week has flown by, and there’s a lot to cover, so we’ll keep it brief. Exciting times for Stefano and the team at Podeo, raising $5.4 million in Series A funding to go global. Huspy is also making headlines with their long-awaited expansion to Saudi.

Meanwhile, UAE’s MGX joined OpenAI’s record-breaking $6.6 billion funding round – what could go wrong there? 👀 Lastly, Revolut announced that Ambareen Musa will be taking the reigns as its new CEO in the UAE – a very astute pick in our book.

Let’s dig in (it’s a long one so we recommend reading online!) 👇

P.S. 📺 Our deep dive this week, looks at how local streaming platforms like Shahid and StarzPlay are fending off Netflix and other global giants in the battle for eyes on screens. You can check it out here.

P.P.S. It’s Jamie’s birthday so please feel free to drop him a birthday message!

This week’s round-up is a 7 min read:

• 🎙️ UAE-based podcasting startup Podeo closes $5.4 million Series A to go global

• 🇦🇪 UAE-based MGX participated in OpenAI's $6.6 billion funding round

• 💸 Ambareen Musa, founder of Souqalmal and Yabi, appointed CEO of Revolut UAE

• 🇸🇦 UAE-based proptech Huspy to expand to Riyadh

• 🔈 Catch-up on Episode 13 of the VC React Podcast

🚀 Startup funding round-up

Al-Menu (🇸🇦 KSA), a F&B SaaS provider that offers cloud-based solutions for restaurants and cafes, has secured $10.12 million in funding led by Al Majdiah Investment and other investors.

Quantum (🇸🇦 KSA), an omnichannel adtech and data platform, has secured funding as part of its ongoing $7 million Pre-Series-A round, with a significant investment from HearstLab, the investment arm of Hearst Corporation focused on scaling women-led tech startups.

Bazzar Gate (🇰🇼 Kuwait), an IT company, has secured $1 million in funding to enhance Partners, an ecommerce platform that allows users to launch fully functional dropshipping businesses in just three minutes.

Funding

🎙️ UAE-based podcasting startup Podeo closes $5.4 million Series A to go global

🎙️ Podeo, a UAE-based podcast distribution platform, has raised $5.4 million in a Series A funding round!

• Founded in 2020 in Lebanon by Stefano Fallaha, Anthony Essaye, and Mario Hayek, Podeo provides an all-in-one platform that handles everything from content creation and distribution to monetisation.

💰 Investor lowdown: The funding round was led by Oraseya Capital, with additional participation from Ibtikar Fund, Cedar Mundi Ventures, Samarium, iSME, and returning investor Razor Capital.

📖 The back story

Podeo's growth surged after the Beirut explosion in 2020, where it became a critical platform for people to share messages of resilience and hope. Following this, Podeo doubled down on Arabic-language podcasts and invested heavily in creator tools like editing software, sound design, branding, and mixing.

⚙️ Breaking it down

Today, Podeo maximises monetisation opportunities for podcasters by offering detailed audience insights, ad-tech solutions, and direct access to advertisers.

In addition to distributing content on major platforms like Spotify and Apple Podcasts, Podeo has expanded its reach through unique partnerships with local outlets such as radio stations, gaming apps, Dubai taxis, and in-flight entertainment provider Anuvu.

With over 100,000 creators and 50 million subscribers, Podeo’s strategy helps podcasters grow their audiences and revenue, while streamlining the entire creation and distribution process.

🐂 Bull case

Podeo has expanded podcast supply in the MENA region by 50x and boosted revenue by 6x in the last year. Creators report a 166% monthly audience growth on average, thanks to Podeo’s multi-channel reach.

With the global podcasting ad spend projected to hit $4.02 billion by 2024, Podeo is poised to capture a significant share of the booming podcast economy.

Additionally, its free-to-use model and elimination of creator fees make it attractive to both creators and listeners, while its programmatic advertising technology ensures creators earn a share of ad revenue.

🔮 Flashforward

The latest funding round will enable Podeo to expand into emerging markets like Latin America, Eastern Europe, and Southeast Asia, scaling its platform and empowering more creators worldwide.

💸 Global investments round-up

🇦🇪 UAE-based MGX participated in OpenAI's $6.6 billion funding round, which values the company at $157 billion. Led by Thrive Capital and backed by Microsoft, Nvidia, and others, the funding brings OpenAI's total raised to nearly $18 billion, supporting AI research and expansion. MGX, founded in Abu Dhabi with partners Mubadala and G42, focuses on AI infrastructure and semiconductors, and is also part of a $30 billion initiative to build AI data centers.

🇪🇬🇫🇷 Beltone Venture Capital, a subsidiary of Beltone Holding, has made its first international investment by acquiring a stake in French e-bike rental company VelyVelo. Founded by Moroccan entrepreneurs, VelyVelo operates over 5,000 e-bikes for last-mile delivery in France, Spain, and Morocco. The investment, amount undisclosed, will support VelyVelo's expansion into the Middle East and North Africa, promoting sustainable mobility solutions.

🇸🇦🇺🇸 Sceye, a U.S. aerospace company specialising in High-Altitude Platform Systems, has closed its Series C funding round led by Saudi-based Mawarid Holding Company, valuing the company at a pre-money valuation of $525 million. This funding will support Sceye's R&D, flight programs, and the launch of commercial operations in 2025.

🇦🇪🇺🇸 GC Therapeutics (GCTx), a U.S.-based biotech startup, has raised $65 million in funding from Mubadala Capital and other global investors. Founded in 2019, GCTx uses machine learning and advanced genome-scale testing to create innovative cell therapy solutions.

💰 Investments round-up

🇸🇬 Agility Global, a Singapore-based multi-business operator and long-term investor, has committed an undisclosed investment to Dubai-based Global Ventures' third fund, which was launched earlier this year. The new fund aims to provide capital to early-stage Middle East and Africa companies in supply chain technology, energy tech, and agri-tech.

🇸🇦 Takamol Holding has invested an undisclosed amount in Raed Ventures' $150 million Fund III, focused on early-stage startups in the MENA region, particularly in FinTech, consumer technology, and AI. So far this year, Raed Ventures has invested in Zeal, Buildnow, and SiFi.

✂️ Saudi’s Public Investment Fund (PIF) has reduced its stake in Amazon by nearly 80%, cutting its holdings to under 350,000 shares, valued at around $66 million, down from $296 million in the previous quarter. PIF also exited its Amazon call option, signaling a strategic shift amid Amazon's challenges, including regulatory scrutiny and rising costs at AWS.

 📲 Fintech round-up

💸 Ambareen Musa, founder of Souqalmal and Yabi, has been appointed as the CEO of Revolut's UAE operations. Announcing the move on LinkedIn, Musa takes on this role after a decade of transforming the financial landscape in the MENA region. Her appointment comes as Revolut seeks to expand in the UAE, applying for an electronic money institution license from the Central Bank.

🇴🇲 Apple Pay has officially launched in Oman, allowing users to add debit cards from banks like Bank Muscat, Sohar International, and others for seamless transactions. Users can easily add cards to the Wallet app and make purchases via iPhone, iPad, or Apple Watch. This launch follows Oman’s push for cashless transactions, aligning with Oman Vision 2040, and complements the earlier introduction of Samsung Pay in the country.

 🤖 AI round-up

💾 Cerebras Systems, an AI chipmaker, tripled its revenue to nearly $79 million in 2023, but ahead of its Nasdaq IPO, it cautioned that its financial growth heavily depends on its partnership with the UAE's G42, which contributed 87% of its 2024 earnings. G42, backed by Abu Dhabi’s Mubadala, has invested $40 million in Cerebras and secured long-term purchase agreements worth $1.5 billion. Cerebras, known for using full silicon wafers as large AI chips, aims to challenge Nvidia’s dominance.

🇲🇦 Researchers at MBZUAI France Lab have developed Atlas-Chat, a family of LLMs focused on Moroccan Arabic (Darija). The open-source models, Atlas-Chat-2B and Atlas-Chat-9B, outperform existing Arabic LLMs by 13% in Darija-specific NLP tasks. Available on Hugging Face, they aim to boost AI access and innovation for Darija speakers.

🌍 Expansion

🏠 Jad Antoun, CEO and Co-founder of UAE-based proptech Huspy, announced the company’s expansion to Riyadh, Saudi Arabia. This move follows Huspy's recent investment round, led by Balderton Capital, with participation from Fifth Wall and other investors. Founded in 2020 by Antoun and Khalid Ashmawy, Huspy facilitates home buying and financing through its online marketplace. To date, Huspy has processed over $6 billion in home transaction value.

💰 VC React Podcast: Episode 13

🎧 In this week's episode, we kick things off by digging into Nuwa Capital and Ajeej Capital's newly launched $100 million regional growth debt fund, Amplify Growth Partnership. .

Next up, we examine SHIFT's impressive $82.8 million investment from Merak Capital, delve into the variety of mobility solutions they offer, and discuss what truly qualifies as a growth-stage startup in MENA.

We also cover the Algerian startup LabLabee, which specialises in immersive training for networking and telecom workers and has recently raised a $3.4 million Seed round.

Finally, we end on a rare positive note from Palestine, where Ibtikar Fund has closed its second venture fund at $25 million, surpassing its original target of $15 million and doubling the size of its first fund.

This week, Ahmad and I were delighted to be joined by:

• Aboudi Al-Qattan (Principal, DASH Ventures)

• Faisal Hakki (Managing Director, AB Ventures LP)

• Mark Kleyner (Co-Founder & CEO, Dream VC)

• Tambi Jalouqa (Managing Partner, Propeller)

📆 Events and Opportunities

🚀 Sanabil Startup Unlocked by 500 Global is an immersive 5-day program in Riyadh, Saudi Arabia designed to help individuals gain foundational knowledge and tools to take their idea to the next level!

🔑 What you get:

• Bespoke programming: Discover a tailored curriculum attuned to sectors in the region, including fintech, ecommerce, mobility, and more.

• Mentorship: Engage with local and global industry experts to embrace the entrepreneurial mindset, map out your ICP, and develop your business model.

• Actionable steps: Realize your strategic vision by breaking down goals into actionable steps through personalized support from our global team.

• Global network access: Access 500’s global network of founders, community events, partners, and more.

📍 Location: Riyadh, KSA
📅 Applications close: October 17, 2024.

📰 Recommended Reads

• Annie Njanja. In war-torn Sudan, a displaced startup incubator returns to fuel innovation