From Tabby to InDrive, How These Startup Companies Are Changing the Region and the World:
The Middle East and North Africa (MENA) region is experiencing an entrepreneurial Startup renaissance, as supportive government policies, more open economic landscapes, and innovative ideas encourage people to start and grow their own businesses. In the first quarter of 2023, startups in the MENA raised $1.1 billion, according to a report by Wamda. The region is also home to six unicorns (startups with a valuation of more than $1 billion) and is expected to produce more than 300 unicorns and soon-icorns (startups forecast to reach that valuation) by 2030, according to a report by Redseer.
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MENA’s top startups in 2023:
Tabby:
Tabby is a leading buy-now-pay-later (BNPL) platform that allows users to shop with flexible payments online and in-store. Tabby has more than 10,000 brands and partners, including nine of the 10 largest retail groups in MENA, and recently partnered with Noon.com, the region’s largest e-commerce marketplace. The MENA’s leading shopping and financial services app has recently raised $200 million in equity financing led by Wellington Management, one of the world’s leading independent investment management firms. The equity financing drew additional participation from growth equity investor Bluepool Capital, in addition to existing investors STV, Mubadala Investment Capital, PayPal Ventures, and Arbor Ventures. Tabby’s Series D round values the company at over US$1.5 billion making it the region’s first fintech unicorn ahead of its planned IPO in Saudi Arabia. Tabby is also the only startup in the GCC to receive funding from PayPal Ventures. Tabby is using the funds to expand its product line into next-gen consumer financial services, such as digital shopping assistant, virtual cards, and no-late-fees solution.
Pure Harvest Smart Farms:
Pure Harvest Smart Farms is an agri-tech startup that designs, builds, and operates indoor farming systems. Pure Harvest leverages innovative tech to enable the production of affordable, sustainably grown produce in the region. Pure Harvest operates four farms in the UAE and has projects in Saudi and Kuwait, including a partnership with Saudi’s National Agricultural Development Company. Pure Harvest has raised $387.1 million in funding and has become the first agribusiness in the region to issue a green sukuk (Islamic bond) to finance its expansion. Pure Harvest aims to address the region’s food security and water scarcity challenges, and to become a global leader in controlled-environment agriculture.
Sary:
Sary is a B2B marketplace that connects small businesses with suppliers. Sary simplifies and optimizes the procurement process, and enables retailers to access a wide range of products at competitive prices. Sary has more than 30,000 registered businesses and 1,000 suppliers on its platform and operates in 20 cities across Saudi Arabia. Sary has raised $112.5 million in funding and has become one of the fastest-growing startups in the region, with a 600% year-on-year growth in gross merchandise value. Sary plans to use the funds to expand its product offerings, enhance its technology, and enter new markets.
Fireflies.ai:
Fireflies.ai is an AI platform that helps you record, transcribe, and search your meetings. Fireflies.ai integrates with popular tools like Zoom, Slack, and Salesforce, and has the same investor as Stripe. Fireflies.ai has more than 500,000 users and 50,000 teams across 150 countries and supports 30 languages. Fireflies.ai has raised $60 million in funding, and has grown its revenue by 12 times in the past year. Fireflies.ai aims to improve the productivity and collaboration of remote workers and to become the ultimate meeting assistant for the modern workplace.
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Floward:
Floward is an online flower and gift delivery platform that operates in several countries in the region, such as Kuwait, Saudi Arabia, UAE, Qatar, Bahrain, and Oman. Floward offers a variety of products, such as flowers, chocolates, cakes, and balloons, and provides same-day delivery and customization options. Floward has more than 400 employees and 70 retail stores and has served more than 1.5 million customers. Floward has raised $55 million in funding and has acquired several regional and international companies, such as Sentiments Express, Caramel, and Dukkan Al Manal. Floward plans to use the funds to expand its operations, launch new products, and enter new markets.
Paymob:
Paymob is a fintech company that enables merchants to accept digital payments online and in-store in the Middle East and North Africa. It offers various payment methods, such as bank cards, mobile wallets, QR codes, and installments, via its gateway, point of sale, and app. It also provides a tap-on-phone solution that allows micro and small merchants to use their NFC-enabled smartphones as POS devices. In 2023, Paymob was ranked as one of the top 30 fintech companies in the region by Forbes¹. It also raised $50 million in a Series B funding round led by PayPal Ventures and Kora Capital, bringing its total funding to $68.5 million. The company plans to use the funds to expand its product offerings, enter new markets, and grow its team.
InDrive:
InDrive is a mobility startup that launches ventures and M&A arm to invest $100 million in startups across emerging markets. InDrive is a leading ride-hailing and car-sharing platform in the region and operates in Egypt, Jordan, Saudi Arabia, and Pakistan. InDrive has raised $170 million in funding and has acquired several regional companies, such as Careem Bus, Jeeny, and Bykea. InDrive plans to use the funds to support the growth of the mobility sector, and to invest in startups that offer innovative solutions for transportation, logistics, and delivery.
Aseel:
Aseel is a fin-tech startup that builds digital infrastructure for developing countries with a focus on financial inclusion. Aseel offers a suite of products, such as digital wallets, remittance, and lending, and has a social impact mission. Aseel has more than 10 million users and 50,000 merchants on its platform and operates in Egypt, Kenya, Nigeria, and Pakistan. Aseel has raised $120 million in funding and has partnered with several global organizations, such as the World Bank, the UN, and Mastercard. Aseel plans to use the funds to expand its product range, enhance its technology, and enter new markets.
These are some of the top startups in the Middle East in 2023, based on their total funding, regional presence, impact, and progress. These startups showcase the region’s resilience and potential for business opportunities and reflect the region’s diverse and dynamic sectors, such as fin-tech, agri-tech, B2B, e-commerce, and mobility. We look forward to seeing more innovations and successes from the MENA’s startup ecosystem.
