And breathe…

Happy Friday, friends 👋 

We weren’t at LEAP this week, but trying to keep up with the frankly near-ludicrous deluge of announcements – spanning the entire ecosystem – felt like being right there in the thick of it, floundering to keep up.

A warning: due to the sheer volume of deals (24 at last count), new funds, new accelerators, and multiple acquisitions, this week’s edition is on the longer side in an attempt to contain it all.

By all accounts, feedback from this year’s LEAP seems overwhelmingly positive – at least in contrast to last year’s instalment – especially on the logistics front.

Announcements crescendoed beautifully, with Tabby stealing the show with its $160M Series E round, bringing its valuation to $3.3B – making it MENA’s most valuable fintech and the region’s second most valuable tech company overall, after Talabat.

In reality, we’ll be unpacking and interrogating everything revealed over the past few days for weeks to come, but hopefully, this edition gives you a solid start.

Now, without further ado, enjoy this week’s edition! 👇

FYI, this edition will very likely get clipped in your inbox, so we recommend reading online below if you can. You’ll get the link to each startup that received funding too.

This week’s round-up is an 8 min read:

• 💸 Saudi BNPL Tabby raises $160M Series E at a $3.3B valuation, becoming MENA’s most valuable fintech

• ⭐️ Saudi’s Merit raises $28 million Series B for its loyalty management platform

• 🧱 Saudi’s BRKZ secures $17M Series A for its construction tech platform

• 🤝 Saudi e-com platform Salla acquires Sweply, rebrands it as “Salla Ads”

• 🔈 Catch-up on Episode 24 of the VC React Podcast

You’ll get access to analysis, case studies, playbooks and interviews unpacking trends, companies, industries, and more. Become a member today.

🚀 Startup funding round-up

AppliedAI (🇦🇪 UAE), an AI software company automating processes in healthcare, insurance, government, and financial services, has raised $55 million in a Series A round led by G42, with participation from Bessemer Venture Partners, Palantir, McKinsey, and Accrete Capital.

Merit (🇸🇦 KSA),a loyalty management platform helping businesses enhance customer and employee engagement, has secured $28 million in a Series B funding round from Investment Capital, Stride Ventures, Tech Invest Com, Oryx Fund and Endeavor Catalyst.

Ula (🇸🇦 KSA), an edtech startup focused on AI-powered digital learning solutions, has raised $28 million in a Series B round led by Rua Growth Fund, with participation from Jordan Capital & Investment Fund and Foursan Group, to develop a generative AI-driven learning platform integrating AR and VR for personalised, interactive education.

BRKZ (🇸🇦 KSA), a tech-enabled managed marketplace streamlining procurement and providing financing solutions for the construction sector, has secured $9 million ($8 million in equity and $1 million in debt) in a Series A round, bringing its total funding to $17 million, with participation from existing investors BECO Capital, Wa’ed Ventures, 9900 Capital, Better Tomorrow Ventures, RZM Investment, Class 5 Global, MISY Ventures, Knollwood Investment Advisory, and Fluent Ventures, along with $1 million in venture debt from Capifly.

Torod (🇸🇦 KSA), a logistics startup helping e-commerce store owners ship, track, and manage returns, has raised $11.2 million in a Series A round with participation from Wa’ed Ventures, Elm, Impact46, Hala Ventures, and Suhail Ventures.

Buildnow (🇸🇦 KSA), MENA’s first "Build Now Pay Later" (BNPL) company for B2B trade, has raised $10 million in a combination of debt and non-dilutive equity funding led by Arbah Capital, with participation from STV through its NICE instrument.

Taager (🇸🇦 KSA), a social e-commerce platform enabling entrepreneurs to start and scale online businesses, has raised $6.75 million in a pre-Series B round led by Norrsken22, with participation from Endeavor Catalyst, Beltone VC, 4DX Ventures, Raed Ventures, BECO Capital, and Breyer Capital.

RasMal (🇸🇦 KSA), a fintech company providing digital solutions for cap table management, fundraising, and equity transfers, has raised $4.8 million in a pre-Series A round led by Syndicate Element Holding Group (SHG)

Unipal (🇧🇭 Bahrain), an edtech startup offering an online education platform with student discounts, has received an undisclosed pre-Series A investment led by Plus VC, with participation from Al Jazira Capital, RZM Investments, Falak Angels, Doha Tech Angels, and other angel investors

WideBot (🇸🇦 KSA), an AI company developing artificial intelligence models and solutions, has raised $3 million in a pre-Series A round led by Keheilan, with participation from Al Wafra II, Enza Capital, DisrupTech Ventures, Den VC, and SparkLabs Ventures.

Leajlak (🇸🇦 KSA), a delivery solutions platform for the e-commerce sector, has raised $2.7 million in a Seed round from angel investors to support geographic expansion and entry into new sectors in e-commerce and modern retail.

Madkhol (🇸🇦 KSA), a robo-advisory investment solutions company, has raised $2.2 million in a Seed round led by Growth Angel Investment Community, with participation from family offices and angel investors.

PIESHIP (🇸🇦 KSA), a logistics startup providing warehouse management and delivery solutions, has raised $2.1 million in a Seed round led by Nama Ventures, with participation from SEEDRA Ventures and angel investors.

Ebra (🇸🇦 KSA), a debt collection and settlement solutions company, has closed a $2 million investment round led by Scene Holding Co., with participation from Raz Holding.

Spoilz (🇸🇦 KSA), a mobile gaming company focused on developing and deploying smartphone games, has secured a Seed investment round led by Impact46 to support the development and release of new games in 2025.

Lite (🇸🇦 KSA), a fintech company providing comprehensive payment solutions to businesses, has raised $3.2 million in a pre-Seed round led by Scene Holding

Vast Menu (🇸🇦 KSA), a payment solutions company specialising in QR code and NFC tech for restaurants and cafes, has closed a $1.33 million pre-seed investment round led by Mr. Mandoob.

LAHINT (🇸🇦 KSA), an e-services platform automating governmental services for individuals and businesses, has raised $1 million in a pre-Seed round from undisclosed investors.

ToumAI (🇲🇦 Morocco), an AI-powered customer experience solutions platform, has raised $1 million in pre-seed funding led by Launch Africa Ventures, with participation from Madica Ventures, Orange Ventures, Digital Africa, GO Ventures, and angels.

Amplifai Health (🇸🇦 KSA), a healthtech company specialising in AI-powered diabetic foot screening solutions, has secured a new funding round with participation from Wa’ed by Aramco, Plug and Play, KAUST Innovation Ventures, Techstars, and Lamarka.

String (🇸🇦 KSA), a local marketing, sales, and communication automation platform, has closed a $533k pre-Seed investment round from a group of angel investors.

Hopea Pay (🇸🇦 KSA), a fintech company specialising in healthcare financial solutions, has secured $400k in pre-Seed funding led by Iwan Ventures, with participation from Odba VC and Beetleware (BW).

Muhami (🇸🇦 KSA), an AI-powered legal advisory platform, has closed a $267k pre-Seed investment round, raising its valuation to $4 million.

Premium deep-dive

A closer look at Saudi’s first e-commerce IPO↗

One month ago, Nice One made history. Debuting on the Tadawul Exchange, the beauty marketplace became the first e-commerce company to IPO in Saudi Arabia – ever. We outline three reasons Nice One is here to stay, along with a note of caution.

Fintech

💸 Saudi BNPL Tabby raises $160M Series E at a $3.3B valuation, becoming MENA’s most valuable fintech

💸 Saudi-based BNPL Tabby has raised $160 million in a Series E round at a $3.3 billion valuation, becoming MENA’s most valuable fintech company.

• It is now the second most valuable internet company in the region, trailing only Talabat. Notably, Tabby reached this milestone in just five years—its seed round was in November 2019.

💰 Investor lowdown: The round was led by existing investors Blue Pool Capital and Hassana Investment Company, with additional participation from STV and Wellington Management.

• This follows a $200 million Series D round in October 2023. The 18-month gap between rounds is the longest in Tabby’s funding history – all previous equity rounds were raised within a year of each other.

• Since the last funding round in October 2023, the financial services app has almost doubled its annualised transaction volumes to over $10 billion while growing profitability. 

⚙️ Breaking it down

Founded in 2019 by Hosam Arab and Daniil Barkalov, Tabby recently acquired Tweeq, a Saudi-based digital wallet, expanding its product portfolio. It has introduced Tabby Card for flexible payments beyond checkout and Tabby Plus, a subscription program. 

Additionally, it has evolved its core buy now, pay later offering with longer-term payment plans, Tabby Shop to help users find the best deals, and Tabby Care, a buyer protection program.

🔮 Flashforward

The newly raised funds will accelerate Tabby’s expansion into financial services, including digital spending accounts, payments, cards, and money management tools. 

This funding round also strengthens Tabby’s position as it prepares for an IPO. The company has reportedly hired HSBC, JP Morgan, and Morgan Stanley to lead the process, according to a source familiar with the matter.

💰 VC

🌍 Regional Funds

💰 Suhail Ventures has launched a $50M fund to support early-stage startups in Saudi Arabia and MENA, focusing on fintech, insurtech, logistics, and AI from pre-seed to Series A.

💸 Sharaka Financial, based in Riyadh, has introduced the $30M Sharaka Ventures Fund to invest in early-stage fintech and business software startups in MENA. Founded in late 2023 by Faris Bin Ibrahim AlRashed AlHumaid, it is licensed by the Saudi Capital Market Authority.

🌍 P1 Ventures, a pan-African VC firm with a portfolio of over 34 companies across 10 countries, has closed its first institutional fund at $50 million, to invest in AI, fintech, and enterprise software startups across Francophone Africa, Nigeria, South Africa, Egypt, and Kenya. Portfolio conmpanies includes Nuitée, Yassir, and Djamo, with investors like Axian Group, Anish Acharya (a16z), and Bernard Dalle (ex-Index Ventures).

🌱 Anara Impact Capital has launched a MENA-focused growth stage thesis driven fund backing transformative change across three themes: learning, skills, and environmental resilience. A subsidiary of Alfanar Venture Philanthropy, it is led by Nafez Dakkak as Managing Partner.

📈 New accelerators

🚀 Orbit Startups & Sanabil Investments (PIF-owned) have launched the $60M Sanabil Accelerator by Orbit, supporting Saudi, MENA, and global startups expanding into the region. The four-month program will offer $100K in initial funding.

🚀 The National Technology Development Program (NTDP) has introduced $150M in accelerators and funds to boost Saudi Arabia’s IT sector and support tech startups.

🔍 Thematic funds

⚙️ Ula Capital has launched a data-driven deep-tech fund, investing in healthcare, climate, and AI, in alignment with Saudi Vision 2030.

🏗️ Joa Capital, in partnership with Buildnow, has introduced an $80M venture fund targeting construction, finance, tech, and infrastructure. The firm is also developing sector-focused funds for gaming, esports, fintech, proptech, transportation, and logistics.

🕹️ HGM has launched a $300M gaming investment fund to attract game developers to Saudi Arabia and expand local and global game development. This aligns with Saudi’s growing e-sports sector, which has been hosting major international tournaments.

🤝 New LPs

🇸🇦🇴🇲 Waad Investment secured funding from Ithkaa Group (Oman Investment Authority) during LEAP 25. Launched in 2024 with a $200M fund, Waad has backed 35+ growth-stage startups. Ithkaa, founded in 2019, specializes in tech and infrastructure investments.

💸 Qora71 has partnered with Key Capital, MENA’s first dedicated secondaries fund, to enhance deal flow and liquidity solutions. As part of the Hub71 Angel Program, Qora71 provides accredited investors access to 50+ high-growth AI and emerging tech firms, including 16 based in Hub71.

 🤝 Acquisitions

📱Salla has acquired Sweply, a Saudi digital advertising platform, which will be rebranded as Salla Ads, integrating advanced ad solutions into Salla’s e-commerce ecosystem. Founded in 2016 by Nawaf Hariri and Salman Butt, Salla enables merchants to launch online stores, while Sweply, founded in 2021 by Ebrahim Saeed and Wael Hassan, specializes in AI-powered ad campaign management. The acquisition follows Salla’s $130M pre-IPO round in March 2024, led by Investcorp, Sanabil Investment, and STV.

🤳 Mush Social has acquired Pubbles, a Saudi social media app, to expand its user base and strengthen its digital presence. Founded in 2022 by Abdulhadi Alasmi, Mush Social enables users to earn points and own virtual assets. Pubbles, launched in 2020, specialises in interactive virtual communities. The acquisition follows Mush Social’s $1.2M pre-seed round in November 2024, led by Nifal Consulting.

🍔 Foodics has acquired Solo Venture, a UK-based self-ordering kiosk and ordering app provider, to enhance its restaurant tech offerings. The deal integrates AI-driven self-service solutions into Foodics’ platform. Additionally, Foodics announced $100M for strategic acquisitions, alongside investments in Norma (AI-powered analytics), Add (SME accounting), and Arzaq Plus (AI-driven supply chain platform).

💳 Saudi tech services provider T2 has acquired a majority stake in Moola, a fintech startup founded by Wassim Hammoud in 2022, to expand into Saudi Arabia’s financial sector. Moola’s expense management platform helps businesses streamline financial processes with automated solutions and corporate business cards.

 📈 Public Markets

🏍️ Talabat has announced its first financial results following its December 2024 IPO, reporting a record $7.4B GMV for FY 2024, exceeding guidance on key metrics. Management revenue reached $3.0B (+32% YoY), while Adjusted EBITDA rose 55% YoY to $500M (6.7% of GMV, up from 5.3%). Growth was driven by strong consumer demand and increased order frequency, with year-on-year margin improvements. Talabat is on track to pay $110M in dividends, up from the previously disclosed $100M, reflecting a strong Q4 and positive outlook.

📈 Swvl has raised $2 million through the sale of pre-funded warrants, following a prior agreement from November 2024. Investors purchased the warrants at $4.79 per share in a private placement that closed on February 7, 2025, agreeing to a six-month lock-up period with restrictions on selling more than 20% of shares every 90 days.

Swvl plans to use the funds for working capital, corporate expenses, and expanding into the US, reinforcing its long-term growth strategy. This follows multi-million dollar contracts across Egypt, Saudi Arabia, and the UAE, financing from HSBC, and a previous $4.7 million private placement. In May 2024, Swvl reported $3.1M in net profits and cash flow for FY 2023

⚙️ Tech & AI

There were a LOT of major tech and AI announcements at LEAP this year. In the interest of time, instead of reproducing them all, we’d like to guide you towards Arab News' comprehensive coverage here.

💰 VC React Podcast: Episode 24

🎧 In this week's episode of the VC React Podcast, we explored Lendo’s $690M warehouse facility and Qeen.ai’s $10M Seed round. We also discussed transparency in startup metrics, whether MENA startups need a physical presence to scale, and if the region could develop its own DeepSeek.

📖 Recommended Reads

Plus VC. Building the Future: The Transformative Power of Construction Technology in the GCC

Victor Sunyer. Did MENA’s copycat startups actually work?

Get seen. Advertise with FWDstart.

Elevate your brand and expand your reach with FWDstart – your trusted source for insights into MENA tech and VC.

Reach top founders, investors, LPs, operators, and technologists shaping and engaging with the region. 

Advertise with FWDstart and make an impact. Get in touch here.