Happy Friday, friends 👋 

Note to self: Don’t wake up at 5AM on a Thursday to finally try getting the newsletter done before midnight for a change – Talabat will just go and ruin it.

On the bright side, I guess a quick commerce deep-dive is now on the horizon. But that’s for another day.

In the meantime, enjoy this week’s edition! 👇

This week’s round-up is a 6 min read:

• 🛒 UAE’s Talabat acquires instashop from Delivery Hero for $32 million

• 🥷 Saudi q-commerce player Ninja targets $1BN+ pre-IPO valuation

• 💳 BNPL Tamara receives SAMA license for consumer finance

• 🌍 LoftyInc Capital has raised $43m for a new pan-African late-seed fund

• 📉 Masa concedes that Softbank has failed to deliver returns to PIF

• 🔈 Catch-up on Episode 27 of the VC React Podcast

🚀 Startup funding round-up

Lobah (🇸🇦 KSA), a gaming studio, has raised $12 million from the Social Development Bank (SDB) to support its game development and publishing platform, Lobah Play, as part of Saudi Arabia’s National Gaming and Esports Strategy.

FanTV (🇦🇪 UAE), an AI-powered, Web 3.0 content platform that enables creators to upload content and earn through views, has raised $3 million in a Series A investment round from Mysten Labs, Cypher Capital, CoinSwitch Ventures, and Illuminati Capital.

BILRS (🇦🇪 UAE), a cross-border payments startup simplifying global bill payments for businesses in 30 countries, has secured an undisclosed investment from Salica Spring Studios Fund and Oasis Fund of Funds.

Mrkoon (🇪🇬 Egypt), a waste management platform enabling businesses to trade surplus and scrap materials via a B2B marketplace, has raised bridge funding from A Ventures, increasing the investor’s stake in the startup to 28%, to support its regional expansion into the GCC.

Premium deep-dive

⚙️ Building the iTunes for spare parts ↗

Why the next industrial revolution will be local, breaking ‘pilot purgatory’ in deeptech sales, and the biggest misconceptions about additive manufacturing.

Acquisition

🛒 UAE’s Talabat acquires instashop from Delivery Hero for $32 million

🛒 talabat has acquired 100% of InstaShop from Delivery Hero for $32 million, fully funded through its internal cash reserves.

Effective February 25, 2025, InstaShop will be consolidated into talabat’s financial accounts while continuing as an independent brand within talabat’s grocery and retail vertical.

Founded in 2015 by John Tsioris and Ioanna Angelidaki, InstaShop operates in the UAE, Bahrain, Egypt, Lebanon, and Qatar, connecting users with local vendors across groceries, pharmacy items, beauty, and personal care products.

• In 2024, it recorded a $631M GMV, growing 16% YoY and contributing 8% to talabat’s GMV. With its integration, talabat’s grocery and retail GMV now exceeds $2.5B.

⏪ Background

Originally acquired by Delivery Hero for $360M in 2020, instashop was its first grocery delivery acquisition in the region and remains one of the largest exits for a female co-founder in MENA.

talabat, was also acquired in 2016 by Delivery Hero, albeit indirectly as part of its acquisition of Rocket Internet SE's food delivery business.

🤔 Hang on, so Delivery Hero owned both companies?

The $32M sale price reflects corporate restructuring, not market value, as Delivery Hero prepared for talabat’s IPO in December 2024.

The move is part of a broader effort by Delivery Hero to streamline operations, optimise capital allocation, and shift focus towards profitability after years of aggressive global expansion.

The company has been reducing exposure to non-core markets and non-food verticals to strengthen its financial position.

💰 What’s with the price?

💰 VC

💸 New fund

🌍 LoftyInc Capital Management has secured $43 million in the first close of its LoftyInc Alpha Fund, a late-seed VC fund targeting startups in Egypt, Nigeria, Kenya, and Francophone Africa. Backed by sovereign wealth funds, DFIs, and global investors, including IFC, FMO, Proparco, AfricaGrow, and Anava Fund of Funds, the fund will invest in fintech, retail enablement, logistics, healthcare, climate tech, and AI. LoftyInc, co-founded by LoftyInc Allied Partners Limited and Marsha Wulff, has previously backed Flutterwave, Andela, Wave, and Moove. The fund will be led by Idris Ayodeji Bello, Mariam Kamel, and Kevin Simmons.

🤝 New LPs

💰 SVC has invested in Artal Growth Opportunities Fund, a $133 million private equity fund managed by Artal Capital, founded by Fawaz AlRajhi. Focused on high-growth, tech-driven companies in the GCC, especially Saudi Arabia. It plans to invest in 8 to 10 technology-enabled mid-market companies in Saudi Arabia and the GCC, with individual investments ranging from $10 to $20 million. This investment is part of SVC’s broader strategy to bolster private equity in Saudi Arabia, following recent commitments to Jadwa GCC Private Equity Fund 1, Aliph Fund I, and General Atlantic’s PE fund.

🫴 Returns

📉 SoftBank Group CEO Masayoshi Son admitted that the company has not “fully delivered” expected returns to Saudi’s PIF, a founding investor in the Vision Fund. Since its 2016 launch, Vision Fund 1 has gained $21.6 billion, but Vision Fund 2 has lost $22.2 billion since 2019. SoftBank reported a $2.4 billion net loss in Q4 2024, driven by declines in Coupang, Didi Global, and AutoStore Holdings, with the Vision Fund posting a 352.7 billion yen loss in the same period. While Abu Dhabi committed $15 billion, PIF did not invest fresh capital in Vision Fund 2, opting only to reinvest profits from the first fund.

🌍 Global investments

🤖 Namek T. Zu'bi, managing partner of Silicon Badia, has led the firm's investment in Catio’s $3 million round. Catio’s AI-powered Copilot for Tech Architecture helps CTOs, architects, and developers optimise tech stacks and make high-ROI decisions. Silicon Badia, founded in 2012, operates in Amman and New York and raised its $50M+ Badia Impact Squared fund in 2021. The firm typically invests $1M-$5M and has backed 100+ startups, including Cartona, Bayzat, and Vezeeta.

 🤝 Acquisitions

💸 UAE-based Foras AI has acquired a 36% stake in Beban Crowdfunding, a Bahrain-based crowdfunding platform licensed by the Central Bank of Bahrain. Founded in 2022 by Hope Ventures, Beban connects SMEs with investors via Sharia-compliant Murabaha debt and equity crowdfunding. The investment will expand Beban’s offerings and improve capital access for startups. Beban has already secured $250K from 5,000+ investors in Bahrain and the GCC.

🇪🇬 PayTabs Group has acquired a majority stake in PayTabs Egypt, transitioning from its partnership with EFG Holdings to full ownership. This move strengthens PayTabs’ digital payments presence and supports financial inclusion in Egypt. CEO Abdulaziz Aljouf emphasized a focus on innovation and localized solutions. Founded in 2014, the Saudi-based firm operates in Saudi Arabia, UAE, Jordan, and Egypt, reinforcing its role in MENA’s payments sector.

⚙️ Public markets

🥷 Saudi-based Ninja is in talks to raise funds at a valuation exceeding $1 billion, with Riyad Capital leading the round, sources say. The quick commerce platform, which operates in Saudi Arabia, Bahrain, Qatar, and Kuwait, is aiming for an IPO by 2027. The fundraise reflects growing investor interest in tech-enabled businesses with a clear public listing path. Riyad Capital, has backed firms like Foodics, Sure Global Tech, and Unifonic.

🏦 Fawry has posted EGP 5.51B ($121.6M) in revenue, marking a 68.4% YoY increase in EGP (14% in USD), while net profit surged 124.6% to EGP 1.61B ($35.5M), achieving a 29.2% net profit margin. Banking services drove growth, contributing 46.9% to revenue increases, while financial services revenue soared 137.7%, with its loan portfolio reaching EGP 3.1B ($68.4M). The myFawry app hit 17.34M downloads (+42.5%), with annualised throughput up 237.9% to EGP 26.8B ($591.5M).

⚙️ Tech

💳 Tamara has received a consumer finance and BNPL license from the Saudi Central Bank (SAMA), allowing it to offer financing solutions exceeding $1,333. This approval follows its preliminary approval and makes Tamara one of 65 licensed finance companies in Saudi Arabia. The Saudi-founded unicorn, which raised $350 million in Series C funding in December 2023, operates in Saudi Arabia, UAE, and Kuwait, enabling users to split payments into four instalments. SAMA stated that this licensing supports financial inclusion and innovation in the kingdom’s financial sector.

🤖 AI

🤖 Microsoft has called on the US government to relax AI export restrictions for allies, including the UAE and Saudi Arabia, arguing that the AI Diffusion Rule hampers American tech firms from expanding AI data centers in these markets. Introduced under President Biden, the rule categorizes countries into three tiers, with tier two nations like the UAE and Saudi Arabia facing import caps designed to keep their AI capabilities one generation behind.

Microsoft President Brad Smith warned that such restrictions could push these countries toward Chinese AI technology, drawing parallels to China’s dominance in 5G telecom.

💰 VC React Podcast: Episode 27

🎧 In this week’s episode, we debate all things edtech, break down Flow48's major $69M Series A round, Seez' acquisition, and last but not least - cake!