Startup Roundup – AI Investments Are Booming Across the Region

Jeddah – Yasmine El Tohamy – CAIRO: Saudi Arabia is witnessing a growing awareness of the implications of artificial intelligence in the public and private sectors as startups continue to raise large sums.

The Kingdom’s latest AI funding round was backed by Abu Dhabi-based venture capital firm Shorooq Partners, which raised $20 million in Series A funding for Saudi firm Intelmatix.

Several Saudi firms also joined the investment, including state-owned Saudi Venture Capital Co., which participated in the investment alongside Saudi Technology Ventures, Olayan Financing Co. and Sultan Holdings, as well as Rua Growth Fund and Kuwait’s Zain Ventures.

The investment reflects growing confidence in Intelmatix’s potential, which is consistent with Saudi Arabia’s strategic focus on artificial intelligence, highlighted by the launch of a $40 billion fund for the sector earlier this year.

The fund aims to make Saudi Arabia the world’s largest investor in artificial intelligence, promoting economic diversification beyond the oil sector.

Founded in 2021 by MIT researchers Anas Al-Faris, Almah Al-Malki, and Ahmad Alabdulkareem, Intelmatix provides the public and private sectors with access to artificial intelligence and advanced analytics to improve operations, increase productivity, growth, and sustainability.

The platform fills the regional AI gap with its Enterprise Decision Intelligence platform and is designed to be user-friendly for a broad range of enterprise users – maximizing impact and adoption while bypassing the need for advanced AI skills.

“EDIX is a comprehensive solution for organizations that need AI capabilities to increase productivity and not worry about AI skills shortages,” said Al-Faris, CEO of the company.

The company says it is one of the first to be supported by Saudi Arabia’s National Technology Development Program, which aims to support AI startups and foster talent development in the country.

Synapse Analytics raises $2 million to expand AI solutions

Synapse Analytics, an Egyptian startup specializing in AI-based decision-making solutions, has raised $2 million in a funding round led by Silicon Badia and Hub71.

The aim of this investment is to expand Synapse’s AI technology to the Gulf region and Africa, with a focus on the financial sector.

The company, part of the Hub71 tech ecosystem, addresses financial inclusion with AI tools for credit scoring, cross-selling and dynamic pricing, among other things.

In a press release, Synapse Analytics CEO Ahmed Abaza highlighted the transformative potential of AI, stating that it is a catalyst to make financial inclusion a reality in the Middle East and Africa region.

Synapse Analytics offers solutions such as Konan, a machine learning-based platform that enables the integration of artificial intelligence into the workflows of financial institutions, and Doxter, a document extraction and process automation platform.

Co-founder Galal El-Beshbishy emphasized that the company places emphasis on seamless integration of AI with existing systems to improve decision-making processes.

Synapse says it has partnered with major banking product providers such as Amazon Web Services and Crealogix, making it a key player in a region undergoing an AI-driven transformation.

The company said its efforts have been recognized around the world, including being named one of the 100 companies that are leaders in the Fourth Industrial Revolution by the World Economic Forum.

Educatly Secures $2.5M Funding Round to Expand Operations

Egyptian higher education network Educatly has raised $2.5 million in a funding round led by TLcom Capital and Plus VC, with participation from Egypt Venture and the HBAN consortium.

This investment supports Educatly’s mission to help students navigate educational opportunities around the world by using advanced AI and language models to provide accurate information about schools, universities, programs and scholarships.

Since its launch in 2020, the Educatly platform has expanded its presence across the Middle East and Africa, now covering over 1,100 universities in 90 countries.

“Our goal was to bridge the gap between students’ educational needs and the opportunities available to them. This investment reaffirms our commitment to continue working towards our vision and strategic goals,” said CEO and co-founder Mohmmed El-Sonbaty.

The platform plans to expand in key markets and improve services to reach more students around the world.

Co-founder Abdelrahman Ayman emphasized that the platform focuses on helping students choose their majors, find the perfect programs and connect with peers from around the world.

Educatly says it has already reached over 3 million students and aims to increase that number to 7 million by the end of 2024.

Cartona Secures $8.1 Million in Series A Extension to Drive Growth

Cartona, a business-to-business platform that digitizes the traditional commerce market in Egypt, has closed an $8.1 million Series A funding round.

The financing round was led by Algebra Ventures, with participation from existing investors Silicon Badia and SANAD Fund for micro, small and medium-sized enterprises.

The expansion follows a $12 million Series A funding round for Cartona led by Silicon Badia, giving it a strong cash position.

The new equity capital of $5.6 million will be used to accelerate growth across sectors including FMCG and hospitality, restaurants, cafes and catering, as well as to increase market share and explore regional expansion opportunities in the Middle East and North Africa region.

The round also includes $2.5 million in debt capital from Camel Ventures and GlobalCorp, which is intended to address the working capital needs of local retailers.

“Our operational and financial metrics are growing positively, attracting capital from both existing and new investors,” said CEO and co-founder Mahmoud Talaat.

Cartona says its platform currently serves over 188,000 retailers across 17 cities in Egypt, with its presence in the HORECA sector growing.

Velents Closes Investment Round Focused on Gender Equality

Velents successfully closed a special investment round with Women Collective, in which over 80 percent of female investors participated and women benefited from preferential terms.

Despite the growing participation of women in the MENA region, women still hold only 10 percent of leadership positions in private equity and venture capital firms, Velents said in a press release.

The goal of this round of funding is to accelerate the development of women as investors and board members.

Velents, which uses artificial intelligence to increase organizational productivity, is initially focusing on its flagship product, Velents Hiring.

The purpose of the recapitalization is to support the implementation of the company’s mission, which is innovation and leading changes in the dynamics of the workplace.

“This investment is a validation of our vision and a step forward in creating a more inclusive investment ecosystem,” said co-founder Mohamed Gaber.

Romanna Dada, co-founder of Women Collective, stressed the importance of this round.

“This investment represents a key step towards gender equality in the investment landscape and sets a precedent for others to follow,” Dada said.

This round is expected to inspire further initiatives that will empower women investors and influence positive change in the technology industry.

MNT-Halan acquires Turkish firm Tam Finans to expand digital financial services

MNT-Halan, Egypt’s largest non-bank financial institution and fintech company, has acquired Tam Finans, a leading commercial finance firm in Turkey, from Actera Group and the European Bank for Reconstruction and Development.

With this acquisition, MNT-Halan will expand its presence in Turkey, which is a market with significant growth potential due to its population of 85 million and low household debt to gross domestic product ratio.

MNT-Halan intends to leverage Tam Finans’ lending models and distribution capabilities combined with technology and financial services to expand its product offering and customer base.

“Combining Tam Finans’ capabilities with our technology and financial strength will help complement our product offering and provide greater confidence to all stakeholders,” said MNT-Halan Founder and CEO Mounir Nakhla.

Tam Finans CEO Hakan Karamanli expressed his enthusiasm about joining MNT-Halan, emphasizing the shared idea of ​​expanding access to innovative financial services.