Foodtech, fintech, and ecommerce startups raise most funding in 2022
In 2022, startups in the Middle East raised over $3 billion, with UAE ruling the roost. Here is a look at the top-funded startups of the year.
Pooja Rajkumari
Monday December 26, 2022 , 9 min Read
Startups in the Middle East North Africa (MENA) region are fast gaining traction, and this year has been especially interesting for them.
A report by Wamda and Digital Digest stated that startups in MENA raised $439 million in November this year, across 39 deals. However, on a month-on-month basis, the value of funding fell 32%, while the deal count declined by 43%. In October, startups recorded investments of $646 million. Yet the total funding value in November 2022 was up 55% from the $284 million raised by startups in the same period last year.
“Investor interest picked up in the region over the last two years and also diversified across regions and sectors,” says Sandeep Ganediwalla, Partner, RedSeer.
This year, startups raised $3 billion in funding. Companies in the foodtech, fintech, and ecommerce sectors raised the most funding in 2022.
The UAE continued to rule the roost in the GCC region with $237 million raised across 13 deals. In October, startups in the UAE received $460 million, Egypt $113 million, and Saudi Arabia $70 million.
The momentum of funding is expected to grow in the region. A RedSeer Report states MENA is approximately a $3-trillion economy; GCC is the gateway to the region, where Indian diaspora is widely present.
Here is a look at the top funded startups according to YourStory Gulf’s research data.
Yellow Door Energy
Funding raised in 2022: $400.038M
Year founded: 2015
Total funding raised: $465.038M
Yellow Door Energy is a UAE-based sustainable energy partner. It provides a performance-based long-term contract, without exposing users to technical or performance risks on their solar plant. The company manages all the stages of the solar plant, while users pay a monthly solar bill once the plant starts producing electricity.
The startup was founded by Jeremy Crane. The investors who funded the company this year are Actis, Arab Petroleum Investments Corporation, International Finance Corporation, and Mitsui & Co.
Jeremy, Yellow Door
Kitopi
Funding raised in 2022: $300M
Year founded: 2018
Total funding raised: $804M
Kitopi is a kitchen-as-a-service platform that enables restaurants to open delivery-only locations by providing the necessary managed infrastructure and software with minimal capital expenditure and time.
Kitopi operates a network of over 60 cloud kitchens in the UAE, Saudi Arabia, Kuwait, and Bahrain. It expanded to the United States in 2019 but exited the market after the pandemic began.
The startup was founded by Mohamad Ballout, Saman Darkan, Bader Ataya, and Andy Arenas.
The investors in the startup’s recent funding are B. Riley Financial, Chimera Investment, DisruptAD, DoÄŸuÅŸ Grubu, Next Play Capital, Nordstar, and SoftBank Vision Fund.
TruKker
Funding raised in 2022: $236M
Year founded: 2016
Total funding raised: $320.35M
TruKKer is a technology-enabled truck aggregator that operates multiple truck types for multiple end markets. The company integrates demand and supply for land freight services.
The network is built on real-time data analytics that aims to create reliability, transparency, and utilisation-based savings for shippers and transporters. It strives to create multiple opportunities through data monetisation and consolidated procurement.
Trukker's cloud-based freight solutions offer end-to-end coverage and a full-service portfolio for shippers, carriers, and businesses alike.
The startup, which is based in Abu Dhabi, UAE, was founded by Gaurav Biswas and Pradeep Mallavarapu. This year’s funding was led by Investcorp, March Holding, Mubadala, Reliance Egypt, and Riyadh Valley Company.
Tabby
Funding raised in 2022: $204M
Year founded: 2019
Total funding raised: $336M
Tabby aims to create financial freedom in the way people shop, earn, and save by reshaping their relationship with money. It has over 2 million active users and a client network of over 4,000 global brands and small businesses, including H&M, Adidas, IKEA, SHEIN, and Bloomingdale’s.
Tabby is active in Saudi Arabia, UAE, Egypt, and Kuwait. The startup was founded by Daniil Barkalov, and Hosam Arab. This year’s investment round was led by Arbor Ventures, Global Founders Capital, Mubadala, Sequoia Capital India, and STV.
Image credit: Forbes Middle East
Pure Harvest
Funding raised in 2022: $180.5M
Year founded: 2016
Total funding raised: $334.47M
Pure Harvest Smart Farms is a regional innovator in sustainable agriculture focused on the production of premium fruits and vegetables in the challenging climates of the Arab Gulf region, using controlled-environment agriculture technologies. The company seeks to leverage innovative growing technologies and horticultural best practices to enable year-round production of affordable, premium quality, fresh produce.
The startup was founded by Mahmoud Adi, and Sky Kurtz. This year’s funding was led by IMM Investment, Metric Capital Partners, and The Olayan Group.
Foodics
Funding raised in 2022: $170M
Year founded: 2014
Total funding raised: $197.99M
Foodics offers a cloud-based all-in-one restaurant management system on an iPad in English and Arabic. The startup has five locations across the Middle East that serves 24/7.
Over a thousand customers have placed over a billion orders through the Foodics system. Its multiple add-on iOS apps have helped thousands of restaurants, food trucks, cafes, and fast-food chains across the Middle East hike their revenues and build their relationships with diners, says the company.
The Saudi-Arabia based startup was founded by Ahmad Al-Zaini and Musab Alothmani. The year’s funding was led by Endeavor Catalyst, Prosus, Sanabil, Sequoia Capital India, STV, and Vision Ventures.
Fenix Games
Funding raised in 2022: $150M
Year founded: 2022
Fenix Games, a Web 3.0 games publisher, comprising gaming and Wall Street veterans, aims to revolutionise the player's relationship with games by bringing them in as stakeholders via the power of blockchain and decentralisation.
The startup was founded by Chris Ko and Rudy Koch. This year’s funding was led by Cypher Capital and Phoenix Technology.
Rain
Funding raised in 2022: $110M
Year founded: 2017
Total funding raised: $228.69M
Rain is an operator of a digital currency exchange and a custodian of digital transactions. It is a regulated cryptocurrency exchange operating in the Middle East.
The startup, which is based in Manama, Al Manamah, Bahrain, was founded by Abdullah Almoaiqel, AJ Nelson, Joe Dallago, and Yehia Badawy.
This year’s round of funding was led by A'Z Angels, Cadenza Ventures, CMT Digital Ventures, Coinbase Ventures, Global Founders Capital, Jameel Investment Management Company, Kleiner Perkins, Middle East Venture Partners, and Paradigm.
Tamara
Funding raised in 2022: $100M
Year founded: 2020
Total funding raised: $215.6M
Tamara is MENA’s leading payments innovator, focused on providing a seamless experience for merchants and customers through fair and transparent financial solutions. The company’s ‘buy now bay later’ platform lets shoppers split their payments online and in-store with no fee or interest.
According to the company, thousands of retailers across the region, including SHEIN, Namshi, Swarovski and Faces, use its solutions to provide flexible financial options to their customers.
Tamara’s financial solutions are developed in adherence to the Islamic Sharia rules and regulations and are compliant with the AAOIFI Sharia Standards.
Tamara was founded in Riyadh, Saudi Arabia by serial entrepreneurs Abdulmajeed Alsukhan, Turki Bin Zarah and Abdulmohsen Al Babtain. Shortly after launching, the company became the first in its category to acquire a sandbox licence from the Saudi Central Bank, which enables the rollout and growth of new financial technologies in the Kingdom.
The company received funding of $110 million in a Series A round in 2021, led by Checkout.com.
Tamara team
Zid
Funding raised in 2022: $50M
Year founded: 2017
Total funding raised: $58.93M
Zid aims to enable the retail sector to enter the world of electronic retail in an easy and professional manner. Its ‘e-commerce in a box’ solution helps retailers build their own e-store (with their own name and identity) and integrates them with supply chain players to enable them to manage the entire process with ease.
Zid is based in Riyadh, Ar Riyad, Saudi Arabia. The 2022 funding round was led by Arzan Venture Capital, Elm, Endeavor Catalyst, Global Ventures, Impact46, MSA Novo, and Saudi Aramco Energy Ventures.
Nana
Funding raised in 2022: $50M
Year founded: 2016
Total funding raised: $78.95M
Nana is an online grocery platform that provides doorstep delivery of groceries and other home essentials. The company's platform offers a wide assortment of groceries, fruits, vegetables, cosmetics, electronics, bakery items, and flowers.
Nana was established in 2016 and is headquartered in Riyadh, Ar Riyad, Saudi Arabia.
Alibi
Funding raised in 2022: $44M
Year founded: 2010
Total funding raised: $50.22M
Altibbi is a digital health platform that offers tools and information to provide access to health advice 24/7 through its website and apps.
The startup was founded by Ayman Sharaiha, Hussein Abdelkarim, Jalil Allabadi. Its recent funding round was led by DASH Ventures, Foundation Holdings, Global Ventures, and Hikma Ventures.
YAP
Funding raised in 2022: $41M
Year founded: 2018
Total funding raised: $41M
YAP is a neobank focused on improving the digital banking experience. It functions as an independent app with no physical branches.
The startup helps users manage their money through spend analytics, payments, transfers and budgeting. It was founded by Marwan Hachem.
Huspy
Funding raised in 2022: $37M
Year founded: 2020
Total funding raised: $47M
Huspy is a proptech company that strives to simplify the home financing process, with an ‘easy-to-use’ experience.
The startup, which is based in Dubai, UAE, was founded by Jad Antoun and Khalid Ashmawy.
This year’s funding was led by Breyer Capital, BY Venture Partners, Chimera Capital Management, COTU Ventures, Fifth Wall, Founders Fund, Predictive VC, Sequoia Capital India, VentureFriends, and VentureSouq.
Retailo
Funding raised in 2022: $36M
Year founded: 2020
Total funding raised: $45M
Retailo is a B2B startup that has digitised retail supply chains in the MENAP (Middle East, North Africa, Afghanistan, and Pakistan) region.
The startup raised $9 million in just nine months in 2022, thanks to a diverse group of international investors, including institutions from Silicon Valley, UK, and GCC and high net-worth individuals.
Headquartered in Riyadh and operational in multiple markets in MENAP, Retailo provides services to over 35,000 active retailers who can access more than 2,000 SKUs from the Retailo app. The products are delivered to the retailers within 24 hours of order placement.
Retailo’s 500+ colleagues are spread across multiple cities in MENAP and they fulfil tens of thousands of retailer orders every month, says the company. This vast operation is managed through multiple warehouses that store inventory from hundreds of brands, many of which are direct Retailo partners.
The startup was founded by former Careem executives Talha Ansari, Wahaj Ahmed, and Mohammad Nowkhaiz.
Edited by Swetha Kannan