Saudi Arabia’s startup ecosystem is experiencing a dynamic shift, marked by significant investments and strategic partnerships that align with the country’s Vision 2030 goals of economic diversification and innovation. Recent funding rounds highlight the growing interest from both local and international venture capitalists, positioning these startups as pivotal players in the region’s digital transformation.
Mobility startup Invygo has successfully raised an $8 million Series A extension led by STV’s newly launched NICE Fund. The funding round also included participation from established investors such as Al Rajhi Partners, Arab Bank Ventures, and MEVP, among others. Founded in the UAE in 2019, Invygo operates an app-based platform that allows users to choose, drive, swap, and own cars across Saudi Arabia, the UAE, and Qatar. With a total of over $22 million raised to date, the company is on the cusp of profitability, expected by the end of 2024. Founder Eslam Hussein emphasized their commitment to creating a financially sustainable business while enhancing customer experience in the mobility sector.
Mala Fintech Launches with $7 Million Pre-Seed Funding
In the fintech arena, Saudi startup Mala has closed a $7 million pre-seed funding round, led by VentureSouq and Shorooq Partners. Founded by Musaab Hakami in 2024, Mala aims to revolutionize the credit landscape for small and medium-sized enterprises (SMEs) with a “procure now, pay later” model. The funding will facilitate the official launch of its services in Saudi Arabia later this year, addressing the credit access challenges faced by suppliers and buyers in the region.
HALA Payments Joins Saudi Unicorns Programme
Another noteworthy development is HALA Payments’ inclusion in the Saudi Unicorns Programme, a government initiative designed to support high-growth companies. Founded in 2018 by Esam Al-Nahdi and Maher Loubieh, HALA specializes in banking solutions for SMEs and freelancers. The program aims to bolster companies’ capabilities to attract talent and expand into new markets while aligning with the broader goals of Saudi Vision 2030.
Other Significant Developments
In addition to these successes, notable investments are emerging in various sectors. Cristiano Ronaldo has invested in the UK-based nutritional supplements provider Bioniq, while UAE proptech startup Prypco secured $10 million to enhance its real estate services. Furthermore, Best Kept Shared’s acquisition of fashion resale platform BAZAARA highlights a growing trend of consolidation in the fashion tech sector, aiming to promote sustainable luxury fashion.
Overall, these developments signal a robust and evolving startup landscape in Saudi Arabia, with the potential to significantly impact the region’s economy and innovation trajectory. As these companies continue to scale and attract investments, they are poised to contribute to the Kingdom’s vision of becoming a global leader in various industries.
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