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Happy Friday! Hype continues to build for Talabat’s highly anticipated IPO on the Dubai Financial Market (DFM) on December 10. Delivery Hero is aiming to raise $1.52 billion by selling a 15% stake, which was fully subscribed within minutes of opening.

At the upper price range, Talabat’s valuation lands around $10.2 billion — slightly below Delivery Hero’s $11 billion market cap and Emirates NBD’s $14.4 billion estimate. The final offering price will be revealed on November 29.

Enjoy this week’s edition 👇

This week’s round-up is a 5 min read:

• 📱 Saudi fintech Edfapay secures $5 Million pre-Series A to boost MENAP expansion

• 🛡️ YC-backed Egypt-based insurtech Amenli secures $2.3 million led by EBRD

• 📈 Talabat $1.5 billion IPO sells out in minutes

• ✍️ Saudi’s Merak Capital launches $80M fund to back MENA gaming startups

• 🔈 Catch-up on Episode 19 of the VC React Podcast

In partnership with Long Angle

🚀 Startup funding round-up

Edfapay (🇸🇦 KSA), a fintech providing SMEs with smartphone-based tap-to-pay solutions, has raised $5 million in a pre-Series A round led by OmanTel Innovation Labs, with participation from Aljabr MENA and Waad Investment.

ariika (🇪🇬 Egypt), a D2C furniture e-commerce platform offering modern home décor through partnerships with global artisans, has raised $3 million in a Series A extension round led by Beltone Venture Capital and Citadel International Holdings.

Qara (🇪🇬 Egypt), a supply chain startup providing producers with a digital platform for product authentication and traceability to the end consumer, has raised $2.6 million from undisclosed investors.

Amenli (🇪🇬 Egypt), an insurtech broker offering accessible insurance products for individuals, families, and SMEs, has raised $2.3 million in a new funding round led by the European Bank for Reconstruction and Development (EBRD) Venture Capital arm, with follow-on participation from Y Combinator.

Shipfinex (🇦🇪 UAE), a maritime fintech platform leveraging blockchain for fractional ownership of maritime assets, has raised $1.5 million in Seed funding led by Gaurav Mehta, Chairman of Best Oasis Limited and SPM Shipping DMCC.

Bubbl (🇸🇦 KSA), a social networking platform with 60,000 daily active users, has raised $350k in a pre-Seed funding round led by angel investor Abdullah Al-Dosari.

💰 VC round-up

📈 Last week we reported on YouGotaGift's acquisition, and this week, in a commendable act of transparency, MEVP has announced the exact breakdown of the deal. Japan-based giftee Inc. acquired a 91% stake in YouGotaGift, with MEVP selling its entire 44% stake, resulting in a 5x cash-on-cash return. This marks MEVP’s second exit in 2024, following Fresha, and raises the DPI of its second fund, MEVFII, to 118%. It is also MEVP’s second exit to a publicly listed Japanese entity, after Cookpad’s acquisition of Shahiya in 2014, and its fifth exit to a publicly listed company overall.

🕹️ Merak Capital has launched Exel By Merak, a $80 million gaming fund and accelerator to support gaming startups and position Saudi Arabia as a global gaming hub. Announced on November 17, 2024, in Riyadh, the program targets game developers and gaming technologies, offering investment, mentorship, and resources to help startups scale. The first batch aims to support 15-20 startups, create over 120 jobs, and contribute SAR 100 million to the Saudi GDP.

☁️ Global Ventures has co-led a $9 million pre-Series B funding round for Singapore-based logistics startup Locad, alongside Reefknot Investments. Founded in 2020 by Constantin Robertz, Jannis Dargel, and Shrey Jain, Locad provides a cloud-based logistics platform for e-commerce brands. The funding will drive Locad's international expansion, starting with the UAE and Saudi Arabia in Q4 2024.

🇸🇦 Jada Fund of Funds has committed to SEEDRA Ventures Fund II, an early-stage, sector-agnostic venture capital fund managed by SEEDRA Ventures. Following its first closing in Q2 2024, the fund has already made notable investments this year, backing SiFi, PIESHIP, and Rize.

🌍 Global investments round-up

📞 Cresta, a contact centre AI platform, has raised $125 million in a Series D funding round, bringing its total funding to over $270 million. The round was led by new investors WiL (World Innovation Lab) and included participation from the Qatar Investment Authority, Accenture, Qualcomm, LG Technology Ventures, and other prominent backers. Existing investors like Andreessen Horowitz, Sequoia Capital, and Tiger Global also participated. The funds will be used to expand Cresta's AI-driven platform to enhance contact centre efficiency and support new R&D centres in Romania and India.

🇲🇦 MNF Ventures, through its MNF II fund, has participated in a €1.3 million funding round for French proptech company Upfund. Specialising in AI-driven data analysis for corporate real estate, Upfund attracted investment from Bpifrance, CDG Invest, MNF Ventures, and key business angels from the tech and real estate sectors.

📈 Public markets

🛵 Talabat's initial public offering (IPO) has been fully subscribed within minutes of opening. The offering, priced between AED 1.50 and AED 1.60 per share, involves a 15% stake, equating to approximately 3.49 billion shares. At the upper price range, Talabat's valuation would be around $10.2 billion, slightly below its parent company Delivery Hero's $11 billion market value and Emirates NBD's estimate of $14.4 billion. This IPO follows recent underperforming regional deals, including Lulu Retail's $1.7 billion IPO in Abu Dhabi and Oman's energy unit's $2 billion offering. The final offering price is set to be announced on November 29, with trading expected to commence on December 10.

🇸🇦 The Saudi Exchange has approved Jahez Group’s transfer from the parallel market "Nomu" to the main market "TASI," reflecting its improved performance and compliance with listing standards. With a capital of 104.92 million SAR across 209.8 million shares, Jahez will temporarily suspend trading after publishing its transfer document, with the timeline for its TASI listing announced once regulatory steps are complete.

👾 Saudi Arabia’s PIF has reduced its stake in Nintendo to 6.3% from 7.5%, selling over 17 million shares between August and October, according to Japan’s Finance Ministry. While previously speculated to increase its holdings, the PIF’s recent sales suggest a shift in strategy. Despite the reduction, the sovereign wealth fund remains one of Nintendo’s largest shareholders. This move comes as the PIF balances its $38 billion gaming investment strategy, which includes hosting major esports events, with growing focus on domestic economic priorities amid budget pressures.

 🤝 Acquisitions

✏️ PwC Middle East has agreed to acquire Emkan Education, a Saudi consulting firm specialising in education and skills development. Established a decade ago, Emkan adds deep expertise to PwC’s regional education division. Founding partners Munira Al Jamjoom, Sarah Zeini, and Basma Bushnaq will join PwC, with Emkan retaining its operations under PwC’s leadership.

💰 VC React Podcast: Episode 19

🎧 This week's episode unpacked Lean Technologies' $67.5M Series B, led by General Catalyst in its first Saudi investment, examining global interest in the region and challenges in scaling A2A payments. We also analysed Talabat’s upcoming IPO on December 10, reviewing its $5.4B GMV, $354M EBITDA, and debt-free status against potential pre-IPO hype.

We also explored Writer’s $200M Series C at a $1.9B valuation, questioning the lack of MENA VC backing and debating B2B AI dominance. Finally, we discussed Abdallah Abu Sheikh’s exit from UAE-based fintech Astra Tech.