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Happy Friday! Where to even begin? From Talabat’s highly anticipated debut on the Dubai Financial Market, to a series of new VC fund announcements, and a healthy number of funding updates — all set against the backdrop of Abu Dhabi Financial Week, which prompted numerous fintech-related developments. This past week has had everything and more.

Enjoy this week’s edition 👇

This week’s round-up is a 5 min read:

• 📉 Talabat drops in Dubai debut after region’s biggest 2024 IPO

• 💰 Iliad Partners launches $50 million MENA-focused VC Fund

• 🧬 UAE-based BioSapien secures $5.5 million pre-Series A to deliver localised cancer treatment

• 🕹️ Beam Ventures to launch $150m Abu Dhabi gaming fund

In partnership with Long Angle

🚀 Startup funding round-up

Wafeq (🇦🇪 UAE), an accounting platform that enables SMEs to conduct e-invoicing, taxation and employee payroll online, has raised $7.5 million in a Series A funding round, led by 9900 Capital, with participation from Gary Turner, formerly CEO of Xero’s operations in EMEA, along with existing investors RAED Ventures and Wamda Capital.

BioSapien (🇦🇪 UAE), a patented drug delivery platform treating cancer 'locally' has raised $5.5 million pre-Series A round, led by Global Ventures with participation from Dara Holdings.

AlGooru (🇸🇦 KSA), an edtech that connects students with on-demand private tutors, has raised $4 million in a pre-Series A funding round through a combination of debt and equity financing, led by Constructor Capital, with participation from Hub71, angel investors, and family offices.

ZSystems (🇲🇦 Morocco), a B2B marketplace empowering traditional retailers and brands with direct access to consumers, has closed a $1.5 million Seed funding round, led by Morocco-based VCs — MNF Ventures (through its MNF II fund), Witamax (through Fund II and III), Cash Plus Ventures, and Kalys Ventures.

DeChat (🇦🇪 UAE), a Web 3.0 social network has raised $1 million in a funding round led by Mindspace Solutions.

BuyAnyAutoPart (🇦🇪 UAE), an autotech startup for trading used car parts has secured $750k in pre-Seed funding from Galadari Brothers, 6G Capital, and other undisclosed investors.

Better (🇦🇪 UAE), a men’s wellness startup dedicated to providing personalised solutions for physical health, has raised a $550,000 pre-Seed round led by Salica Spring Studios’ fund, backed by Salica Investments and Al Waha Fund of Funds, and Plus VC (+VC).

Hudhudshop (🇶🇦 Qatar) an e-commerce platform that specialises in the distribution of premium Turkish products throughout the Gulf region, has closed a six-figure dollar pre-seed funding round from undisclosed investors.

Public Markets

Talabat drops in Dubai debut after region’s biggest 2024 IPO

🛵 Talabat, the leading on-demand delivery platform in MENA, made its highly anticipated debut on the Dubai Financial Market (DFM) this week, marking the largest global tech IPO of 2024.

Despite raising AED 7.5 billion ($2.04 billion) in an oversubscribed offering, Talabat’s shares closed 6.9% lower at AED 1.49, below the IPO price of AED 1.60.

⚙️ Breaking it down

Talabat, a unit of Delivery Hero SE, initially rallied 7.5% on launch day before reversing gains amid concerns over high valuations. Priced at a price-to-earnings ratio of 28x, significantly above the DFM benchmark of 9x, some market participants viewed the valuation as stretched.

The IPO offered a 20% stake, upsized from the originally planned 15% due to strong demand from anchor investors, including Emirates NBD, the Abu Dhabi Pension Fund, and Emirates International Investment Company. However, institutional and professional investors have since led the sell-off.

Delivery Hero’s stock also fell 12% in Frankfurt, reflecting broader concerns.

🐂 Wider IPO outlook

Retail investors accounted for only 5% of Talabat’s IPO, leaving institutional investors to drive price movements.

Despite challenges, Talabat’s market-cap of AED 34.7 billion ($9.4 billion) remains close to its parent company Delivery Hero’s valuation of €9.2 billion ($9.7 billion).

🔮 Flashforward

Talabat’s GMV for the first nine months of 2024 reached $5.4 billion, a 21% year-over-year increase. Revenue rose 32% to $2.1 billion, and net profit jumped 72% to $271 million.

With Delivery Hero retaining an 80% stake in Talabat, its future growth remains pivotal for both companies.

💰 VC round-up

🇦🇪 UAE-based VC firm Iliad Partners has announced the launch and first close of its $50M Iliad Partners Tech Ventures Fund I, backed by prominent investors including Jada Fund of Funds (PIF subsidiary), the Olayan Family, and Masarrah Investment Company. The fund will targets early-stage B2B software startups in fintech, logistics, and proptech, focusing on pre-Series A and Series A companies with product-market fit and cross-border expansion potential.

• Iliad plans to write cheques ranging from $500K to $5M and allocate 10% of the fund to European startups, with a focus on Greece.

• Initial investments include Saudi-based OTO and Penny, and UAE-based Qashio, alongside a portfolio that includes Trukker, a logistics firm that secured $100M in Series C funding from Investcorp and Mubadala in 2022.

• Founded in 2016 by Christos Mastoras and Omar Al-Madhi, Iliad Partners is based in Abu Dhabi’s ADGM, partnering with Hub71.

🇦🇪🇮🇳 India’s largest early-stage accelerator VC fund, 100Unicorns, has opened its first international office in ADGM. With a $200M fund, the firm is aiming to create over 50 startups and build a cross-border investment corridor between India and the UAE. Launched in 2020, 100Unicorns targets nurturing 100 billion-dollar startups within the next decade. Initially investing $300K–$1M per startup, the fund now offers later-stage funding of up to $2M. It has backed 145 startups, including Shiprocket, Zypp Electric, and Renee Cosmetics, driving six to valuations above $200M and 30 beyond $50M.

🇦🇪 Qora71, a new venture syndicate, launched this week in partnership with Hub71 to support startups and growth companies by connecting them with investors, clients, talent, and regulators. The syndicate is stage, geography, and industry agnostic, focusing on deals where members can add strategic value. Key features include zero fees, no minimum commitments, and full flexibility for investors to opt in or out of deals. It is backed by Hub71, which covers SPV costs, and Zest Equity, which manages SPV setup and operations. Two deals (both Hub71 companies) are already closed, with more in progress.

🇦🇪 Hub71 has partnered with Google to launch Google for Startups in Abu Dhabi, providing growth opportunities for UAE startups. Starting in 2025, a dedicated accelerator program will support 25 Hub71 startups with mentorship, resources, and up to $300,000 in Google Cloud credits.

🇦🇪 The Emirates Family Office Association (EFOA) has announced a strategic partnership with the Middle East Venture Capital Association (MEVCA). The collaboration brings together two leading UAE-born associations to launch exclusive, closed-door initiatives aimed at fostering knowledge sharing, networking, and ecosystem building for Family Offices, venture capital firms, and investors in the Middle East.

🏦 Fintech

💸 Dubai-based Astra Tech has raised $500 million in financing from Citi for its fintech subsidiary, Quantix Technology Projects. This marks the largest funding of its kind for a UAE fintech. Quantix, the first UAE-based fintech to receive a central bank finance license since 2008, will use the funds to expand its CashNow lending platform and support Astra Tech’s Ultra app. The all-in-one app, with over 150 million users in 155 countries, offers services like financial management, voice calling, and shopping.

📱 MNT-Halan, Egypt’s fintech unicorn, has entered the UAE market, launching its salary financing solution, Halan Advance. With over 3.7 million underbanked expats in the UAE, MNT-Halan is aiming to address gaps in credit, payments, and investments. Backed by investors like Abu Dhabi’s Lunate, the company has already partnered with major employers, acquiring over 40,000 customers since April, with a goal of reaching 250,000 by 2025.

🇦🇪 AE Coin, the UAE's first regulated cryptocurrency, has received approval from the Central Bank of the UAE and will soon be available for transactions. Fully backed by reserves within the UAE, AE Coin ensures consistent value and eliminates price fluctuations. The launch follows updated Central Bank regulations permitting dirham-backed stablecoins while excluding other digital assets, like bitcoin, for payments. Financial free zones remain exempt from these rules.

📲🇦🇪 Apple has introduced Tap to Pay on iPhone in the UAE, enabling merchants to accept secure, contactless payments without additional hardware. Businesses can use an iPhone Xs or later with a partner-enabled iOS app to process payments from contactless cards, Apple Pay, and other digital wallets. The service supports major payment networks, including American Express, Mastercard, and Visa. Adyen, Magnati, and Network International are the first UAE platforms to integrate this feature. Transactions are encrypted and processed via Secure Element, ensuring privacy and security for users.

📲🇸🇦 The Saudi Central Bank (SAMA) has launched Samsung Pay through the national payment system, mada. Samsung Pay, integrated into the Samsung Wallet app, allows users to manage mada and credit cards securely. Features include tokenisation, fingerprint authentication, and iris scanning for secure payments at stores, restaurants, and online retailers worldwide. This launch follows SAMA’s agreement with Samsung in September to enable Samsung Pay in Q4 2024.

📈 Public markets

🏠 Property Finder, the leading real estate platform in MENA, is likely to go public in the future, CEO Michael Lahyani revealed at Abu Dhabi Finance Week. “It’s not something we’re actively working on, but it’s a way to access capital or bring liquidity to shareholders,” he said.

Founded in 2007, Property Finder serves over 5.5 million monthly users across MENA. Earlier this year, it raised $90M in debt financing to buy back shares from BECO Capital, valuing the company at roughly $1B.

👩‍💻 Tech

💾 The US has approved the export of advanced AI chips to the UAE for use by G42, a state-backed Emirati AI company, via a Microsoft-operated facility. Microsoft, which has invested over $1.5B in G42, holds a minority stake and a board seat in the company. The deal, delayed over concerns about potential technology transfers to China, allows G42 to run AI applications using Microsoft’s cloud services. G42 works in AI research, cloud computing, data centres, and energy, and has developed a "regulated technology environment" to comply with US standards while maintaining UAE sovereignty.

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