Startup Wrap – Saudi based startups continue to raise significant funding

Saudi Arabia’s Lendo, a Shariah-compliant debt crowdfunding marketplace, has raised SR105 million ($28 million) in a series B funding round led by Sanabil Investments, a company owned by the Public Investment Fund. (SPA)
Saudi Arabia’s Lendo, a Shariah-compliant debt crowdfunding marketplace, has raised SR105 million ($28 million) in a series B funding round led by Sanabil Investments, a company owned by the Public Investment Fund. (SPA)
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Updated 16 December 2023
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Startup Wrap – Saudi based startups continue to raise significant funding

Startup Wrap – Saudi based startups continue to raise significant funding
  • Naeem recently closed an undisclosed pre-seed funding round led by Lunment and a group of angel investors

CAIRO: The startup ecosystem in Saudi Arabia remains at the forefront of regional funding trends, attracting substantial investments.

Naeem, a Saudi Arabia-based software as a service platform targeting the salon and beauty sector, has recently closed an undisclosed pre-seed funding round led by Lunment and a group of angel investors.

Founded in 2022 by Abdullah Al-Mansour and Saleh Al-Butti, Naeem’s services, which cater to both customers and business owners, include point of sale systems, reservations, financial, and operational management.  




UAE-based agritech Pure Harvest Smart Farms announced the acquisition of Red Sea’s production facility in Saudi Arabia to expand its farm footprint. (Supplied)

“We are pleased to close this financing round, which will help us expand and enhance our presence. This financing round reflects the great optimism and growing support for Naeem and represents an important turning point in our journey towards achieving success and innovation in this sector,” Al-Mansour said.

The company aims to utilize this funding to bolster its presence within the Saudi market.

“We are committed to providing the best digital solutions for the personal care sector. We can see that our solutions have helped salons and beauty centers improve their businesses and provide a better experience for their customers,” Al-Butti added.




Founded in 2022 by Abdullah Al-Mansour and Saleh Al-Butti, Naeem’s services include point of sale systems, financial, and operational management. (Supplied)

Lendo raises $28m for Shariah-compliant crowdfunding

Saudi Arabia’s Lendo, a Shariah-compliant debt crowdfunding marketplace, has raised SR105 million ($28 million) in a series B funding round led by Sanabil Investments, a company owned by the Public Investment Fund.  

The round also saw contributions from Shorooq Partners, AB Ventures, and others.  




Mohammad Jawabri, Lendo co-founder and COO

Founded in 2019 by Osama Al-Raee and Mohammad Jawabri, Lendo assists small and medium enterprises with digital pre-financing of invoices and offers quick, short-term cash borrowing options.

The fresh capital will aid Lendo’s expansion into new markets and the development of new Shariah-compliant products.

“The growing demand for alternative, agile, and accessible lending solutions presents a significant opportunity. At Lendo, we are well-positioned to lead the charge in promoting financial inclusion not only in Saudi Arabia but also beyond. By fueling SME growth, we aim to contribute to the realization of Saudi Arabia's Vision 2030 economic goals and to create a ripple effect of opportunity throughout the MENA (Middle East and North Africa) region,” said Jawabri.

The growing demand for alternative, agile, and accessible lending solutions presents a significant opportunity. At Lendo, we are well-positioned to lead the charge in promoting financial inclusion not only in Saudi Arabia but also beyond.

Mohammad Jawabri, Lendo co-founder and COO

Pure Harvest Smart Farms acquires RedSea’s CEA facility in Saudi Arabia

UAE-based agritech company Pure Harvest Smart Farms has announced its acquisition of RedSea’s controlled-environment agriculture production facility in Saudi Arabia.  

Set to take over operations in January 2024, this move enables Pure Harvest to expand its farm footprint and benefit from RedSea’s SecondSky technology.  

This technology, a heat-blocking roofing solution, boosts energy efficiency in greenhouses.  

Founded in 2016 by Sky Kurtz, Mahmoud Adi, and Robert Kupstas, Pure Harvest specializes in hydroponic technology for growing fruits and vegetables in desert climates. The acquisition also includes a 40-hectare land bank co-located with the facility.

“This transaction allows us to double our footprint in the Kingdom and serves as a foundational deployment of our novel ‘franchise farming’ business model, a solution that has been under development for over two years,” Kurtz said.

Founded in 2018 by Mark Tester and Ryan Lefers, RedSea utilizes salt water to grow local produce more sustainably to reduce carbon emission and resource scarcity.

“We always planned a transition from farm operator to a pure-play technology company. In Pure Harvest, we have found a custodian for what we have built in the Kingdom to-date, including our fruitful partnership with Alajaweed Farm,” Lefers stated.

Pala De 7 raises $1m to create padel community platform

Saudi-based startup Pala De 7 raised SR3.75 million led by sports technology startup Grintafy Technology with participation from AlTahan and Shaghaf Investments.

The company aims to create a new community platform for Padel tennis players in the Kingdom.

Founded by Tarek Ashoor, Pala De 7 is set to launch its platform in early 2024 which will offer field registration, court booking, and matchmaking.

HyveGeo secures pre-seed funding led by SystemaNova.vc

HyveGeo, a UAE-based climate technology startup, has recently closed a pre-seed funding round, the amount of which remains undisclosed, led by SystemaNova.vc.  

Co-founded in 2023 by Abdulaziz bin Redha, Samsurin Welch, Eva Morales, and Harjit Singh, the company focuses on using microalgae technology for soil regeneration and carbon removal.  

HyveGeo plans to pilot its program in the UAE with this new funding.

Fundbot secures $1.5m for MENA expansion

UAE-based fintech Fundbot has raised a $1.5 million seed round led by Hambro Perks Oryx Fund, supported by Aditum Investment Management Limited, Flat6Labs, Middle East Venture Partners, and PlusVC.  

Founded in 2020 by Karl Abou Zeid, Fundbot simplifies corporate lending and payments between banks, buyers, and sellers.  

The investment is set to fuel the company’s expansion plans in the MENA region, starting with the UAE and Saudi Arabia and later extending to Oman, Bahrain, and Egypt.

Midori Network raises $200k for mobile recycling modules

Midori Network, a UAE-based climate tech startup, has secured $200,000 in pre-seed funding from Kirill Veselov, a former investment director at Mint Capital.  

Founded in 2023 by Fedor Smirnov, the startup operates a network of container-based mobile recycling modules addressing the plastic waste problem in rural areas.  

Part of the TECOM Group PJSC business incubator in5, Midori Network aims to expand its eco-conscious solutions globally with this funding.

Mubadala Capital joins $48m series A in Andalusia Labs

Abu Dhabi’s Mubadala Capital, a $280 billion global sovereign fund, has participated in a $48 million series A funding round for US-based blockchain startup Andalusia Labs.  

The round also included Lightspeed Venture Partners, Pantera Capital, Framework Ventures, Bain Capital Ventures, and Digital Currency Group.  

The new funding round puts Andalusia Labs at $1 billion valuation, marking it as a unicorn.  

Co-founded in 2021 by Drew Patel and Raouf Ben-Har, the company specializes in risk management infrastructure for digital assets and plans to establish its global headquarters in Abu Dhabi Global Markets.  

The funding will accelerate product development, enhance institutional partnerships, and support global expansion.

Terra raises $2m for electric mobility solutions

Terra, a UAE-based electric mobility company, has raised a $2 million seed round from a group of angel investors.  

Founded in 2010 by Husam Zammar, Terra provides a battery swapping and recharging platform, alongside a fleet of electric vehicles.  

This funding will be used to enhance its mobile application for riders and cloud-fleet management dashboard for operators in the last-mile sector.  

Terra’s recent launch of its first fleet of electric motorbikes follows the successful completion of a pre-seed round earlier this year.

 


NEOM board of directors announces leadership change

NEOM board of directors announces leadership change
Updated 12 November 2024
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NEOM board of directors announces leadership change

NEOM board of directors announces leadership change
  • Head of Public Investment Fund’s Local Real Estate Division since 2018, Al-Mudaifer has a deep and strategic understanding of NEOM and its projects

NEOM: The NEOM Board of Directors on Tuesday announced the appointment of Aiman Al-Mudaifer as acting CEO of the company. Al-Mudaifer assumes leadership of NEOM, following Nadhmi Al-Nasr’s departure.

As NEOM enters a new phase of delivery, this new leadership will ensure operational continuity, agility and efficiency to match the overall vision and objectives of the project.

Al-Mudaifer takes the helm of the organization with the support of a strong leadership team across NEOM’s regions, sectors and departments.

Head of Public Investment Fund’s Local Real Estate Division since 2018, Al-Mudaifer has a deep and strategic understanding of NEOM and its projects.

In his role at PIF, Al-Mudaifer oversees all local real estate investments and infrastructure projects. He is also a board member of multiple prominent companies within the Kingdom.

NEOM is a fundamental pillar of Saudi Vision 2030 and progress continues on all operations as planned, as we deliver the next phase of our vast portfolio of projects including THE LINE, Oxagon, Trojena, Magna and The Islands of NEOM. 

Through these projects, NEOM seeks to achieve harmony between livability, business and nature, and to create a better future for current and future generations.


Maldives, Bulgaria push for greater climate action, financing

Maldives, Bulgaria push for greater climate action, financing
Updated 12 November 2024
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Maldives, Bulgaria push for greater climate action, financing

Maldives, Bulgaria push for greater climate action, financing

RIYADH: Insufficient financing continues to be a significant barrier preventing many countries, especially underdeveloped nations, from meeting their climate goals, according to the President of the Maldives.

Speaking on the second day of COP29, held in Azerbaijan from Nov. 11-22, Mohamed Muizzu emphasized that small island developing states require trillions, not billions, of dollars in climate finance.

“It is the lack of finance that inhibits our ambitions, which is why this COP, the finance COP, we need to deliver the new climate finance goal. This must reflect the true scale of the climate crisis. The need is in trillions, not billions,” Muizzu said.

He added, “It must consider the special circumstances of small island developing states — it must include adaptation, mitigation, and loss and damage.”

Muizzu also reiterated the importance of the environment for his country, stating: “You have called for stronger climate action. Our call has not changed. Our cause has not strayed because, for us, the environment and the ocean are more than resources. They are our cultural identity.”

In a similar vein, Bulgarian President Rumen Radev addressed the global impact of climate-related disasters, emphasizing that no region is immune to the deadly and costly consequences of climate change.

“Bulgaria is committed not only to being part of regional and energy cooperation initiatives across Central and Eastern Europe, the Balkans, and the Black Sea region but also beyond, by strengthening the links between the European Union and non-EU countries who share our priorities on climate neutrality, just energy transition, energy security, and low-carbon technological innovation,” Radev said.

He further called for broader action, stating, “All parties should undertake greater efforts to integrate climate change adaptation and resilience into all policies and strategies.”


Closing Bell: Saudi main index slips to 12,048

Closing Bell: Saudi main index slips to 12,048
Updated 12 November 2024
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Closing Bell: Saudi main index slips to 12,048

Closing Bell: Saudi main index slips to 12,048

RIYADH: Saudi Arabia’s Tadawul All Share Index fell on Tuesday, losing 58.74 points to close at 12,047.67.

The total trading turnover of the benchmark index was SR5.75 billion ($1.53 billion), with 70 stocks advancing and 152 declining.

Saudi Arabia’s parallel market saw a drop, losing 50.59 points to close at 29,110.41. The MSCI Tadawul Index also declined, shedding 5.06 points to end at 1,516.14.

The best-performing stock on the main market was Al Jouf Cement Co., with a 4.75 percent increase to SR10.58. Other top gainers included Malath Cooperative Insurance Co. and Elm Co., with shares rising by 4.40 percent to SR15.66 and 3.87 percent to SR1,101.1, respectively.

The worst performer on the main index was Fawaz Abdulaziz Alhokair Co., whose share price dropped by 4.42 percent to SR12.12.

National Environmental Recycling Co., also known as Tadweer, announced it had signed a memorandum of understanding with Re Sustainability Middle East Co. to explore the potential for establishing smelters and recycling units in the Kingdom. According to a statement on Tadawul, the deal is valid for one year and carries no immediate financial impact.

The company’s share price declined by 0.45 percent to SR13.4. 

Purity for Information Technology Co. announced it has secured a contract valued at SR10.7 million from Saudi Comprehensive Technical and Security Control Co. to supply technology equipment. The company stated that the financial impact of the contract will be reflected in the first quarter of next year.

Its share price dropped by 0.73 percent to SR8.33.

Red Sea International Co. reported a narrowed net loss of SR2.18 million for the first nine months of this year, compared to a SR54.7 million loss in the same period in 2023. According to a statement on Tadawul, the improvement was driven by a 515.78 percent year-on-year increase in sales revenue. However, Red Sea International’s share price declined by 4.05 percent to SR71.

Lazurde Co. for Jewelry reported a 42.98 percent decline in net profit for the first nine months, totaling SR24.8 million, compared to the same period last year. The company attributed this drop to a 6.61 percent year-on-year decrease in operating profit over the nine-month period. Lazurde’s share price dropped by 2.05 percent to SR13.36.


UN climate chief urges aggressive action as emissions hit GDP

UN climate chief urges aggressive action as emissions hit GDP
Updated 12 November 2024
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UN climate chief urges aggressive action as emissions hit GDP

UN climate chief urges aggressive action as emissions hit GDP
  • UN official warned that worsening climate impacts will ‘put inflation on steroids’ unless every country takes bolder climate action
  • Simon Stiell called on governments to leave COP29 with a clear global climate finance plan

RIYADH: The global climate crisis is rapidly evolving into an economic threat, with the impact of emissions reducing the gross domestic product of several countries by up to 5 percent, a UN official said. 

Speaking at the high-level segment for heads of state and government at the COP29 in Baku, Simon Stiell, executive secretary of the UN Framework Convention on Climate Change, emphasized the urgent need for more aggressive climate actions to address economic challenges, including rising inflation. 

“We used to talk about climate action as being mostly about saving future generations. But there has been a seismic shift in the global climate crisis, as the climate crisis is fast becoming an economy killer,” said Stiell. 

He added, “In this political cycle, climate impacts are curving up to 5 percent off GDP in many countries. The climate crisis is a cost-of-living crisis, as climate disasters are driving up costs for households and businesses.” 

Stiell’s comments came shortly after a report by finance consultancy Oxera, which revealed that climate-related extreme weather events have cost the global economy more than $2 trillion over the past decade, with the US being the most affected. 

The UN official warned that worsening climate impacts will “put inflation on steroids” unless every country takes bolder climate action. 

Stiell urged the world to learn from the COVID-19 pandemic, highlighting the economic suffering caused by slow and ineffective collective action on supply chain issues. 

Describing climate finance as “global inflation insurance,” he warned that failing to address the economic toll of climate change would lead to disaster. 

“Letting this issue languish halfway down cabinet agendas is a recipe for disaster,” he said. 

However, Stiell remained optimistic, asserting that effective climate action could save economies and create new economic opportunities. He pointed to the growth of renewable energy as a potential driver of stronger financial states for nations. 

“This isn’t just about saving your economies and people,” he said. “Bolder climate action can drive economic opportunity. Cheap, clean energy can be the bedrock of your economies. It means more jobs, growth, less pollution choking cities, healthier citizens, and stronger businesses.” 

Stiell called on governments to leave COP29 with a clear global climate finance plan and urged international cooperation as the key to combating global warming and ensuring humanity’s survival. 

“We need your direct engagement on new national climate targets and plans — NDCs — so that all of you can benefit from the boom in clean energy and climate resilience,” said Stiell. 

He added: “These are not easy times, but despair is not a strategy, nor is it warranted. Our process is strong, and it will endure. After all, international cooperation is the only way humanity can survive global warming.” 


OPEC revises down global oil demand growth forecasts for 2024, 2025

OPEC revises down global oil demand growth forecasts for 2024, 2025
Updated 12 November 2024
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OPEC revises down global oil demand growth forecasts for 2024, 2025

OPEC revises down global oil demand growth forecasts for 2024, 2025
  • OPEC revised its 2024 global oil demand growth estimate to 1.82 million barrels per day, down from 1.93 million bpd forecast last month

LONDON: The Organization of the Petroleum Exporting Countries has again downgraded its global oil demand growth projections for both 2024 and 2025, marking the fourth consecutive reduction.

The revision, announced on Tuesday, underscores weaker demand expectations for key regions such as China, India, and other parts of the world.

The updated forecast highlights the ongoing challenges faced by OPEC+, the broader alliance that includes OPEC members and partners like Russia. Earlier this month, OPEC+ delayed plans to increase oil output starting in December, citing concerns over falling oil prices.

In its latest monthly report, OPEC revised its 2024 global oil demand growth estimate to 1.82 million barrels per day, down from 1.93 million bpd forecast last month. This marks the first revision to the outlook since it was initially set in July 2023.

China was the primary driver of the downward revision. OPEC reduced its forecast for Chinese oil demand growth to 450,000 bpd, down from 580,000 bpd, noting that diesel consumption in September dropped year on year for the seventh consecutive month. OPEC attributed this decline to a slowdown in construction and weak manufacturing activity, as well as the rising use of LNG-fueled trucks in China.

The weaker outlook weighed on oil prices, with Brent crude trading below $73 per barrel following the release of the report.

The demand outlook for 2024 remains uncertain, with significant differences among forecasters regarding the strength of global demand growth, particularly concerning China’s recovery and the pace at which the world transitions to cleaner fuels.

In addition to the 2024 revision, OPEC also lowered its forecast for global oil demand growth in 2025 to 1.54 million bpd, down from the previous estimate of 1.64 million bpd.