This is how AstroLabs is helping companies build global businesses from the Middle East
Within nearly 200 active clients, AstroLabs is a capability building company, developing the digital ecosystem of the MENA region.
When the Morocco-based logistics firm, Freterium was looking beyond its horizons and towards the MENA region. It needed someone who could help with setting up a base, give them access to the right markets and clients—in some cases even open the right doors.
This is where came into the picture. As a technology ecosystem builder in MENA region, it knew the lay of the land when it came to the Middle East. “Ecosystems need time,” says Christina Andreassan, Director of Programs, AstroLabs.
“We are over 10 years old, and understand that this takes time, especially if we have to build a sustainable and economically viable business. Ecosystems need talent, great companies coming and growing organically, access to innovation, and companies that grow outside the region. And build globally competitive companies,” she adds.
This thesis has brought the firm a long way from its beginning in 2013. Since then, the company has helped over 1000 companies in finding the right ecosystem. AstroLabs, counts the likes of governments, corporations as its main clients, while it helps startups establish a business at nominal costs.
Companies within AstroLabs collectively have raised over $300 million in 2022. “Our ethos is super practical and action based items that focus on what startups actually need. We have a full set of them that help companies establish a company in the UAE or expand their company abroad,” Christina tells YourStory Gulf Edition.
AstroLabs primarily works with companies who are looking to expand into the UAE, Saudi Arabia and the larger MENA region. To companies that work with them, it offers a number of amenities like office spaces at affordable prices and the chance to interact with other entrepreneurs who can give you a push in the right direction.
“We have market entry programmes with the governments across the globe to help find the startups that could succeed in the MENA region. Thus we look at if a product is differentiator, the kind of competition they would have in the market, are they well-funded to sustain operations in the region,” says Christina.
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What does AstroLabs do?
Since most companies have built business lines to achieve each of these different goals, part of AstroLabs jobs is to enable companies to enter the market, scale, setup, hire their first team and grow regionally. It currently has over 200 active members. The team today is also seeing an influx of companies from Europe. The geopolitical situation is now making Dubai a lucrative region for businesses.
“We have a talent arm that helps company staff across all levels. We have bespoke programs that help entrepreneurs. These are typically based on industry or stage that the government or corporate who want to invest into,” says Christina.
Christina illustrates this with a suitable example.”We recently had a programme with the team of one of the largest mall operators in the region. They wanted to work with startups, and we helped source the companies from our communities to help them get into the region to work with the client,” she says.
For the startup this also means that they have a new client as well as a channel of sales to leverage. The support doesn’t stop here, AstroLabs further helps companies connect with more startups in the larger ecosystem.
AstroLabs charges the companies with setting up, desk, and expansion fees. However, the team refused to disclose the number.
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Opportunities in the Middle East
With international funds entering the region, the amount of funding is also growing along with the competition. “YC is taking in a large number of startups in the MENA region so now it is feasible to start a company here,” says Christina.
“At the start we had the low hanging fruit e-commerce businesses, B2C copycat businesses, these were all early movers. Now in the GCC regions, we see the rise of countries like Egypt, and there is a growing adoption of technology and digitisation, and many are cracking the initial product in the MENA region before they expand,” she adds.
There is also a large influx from Europe, notes Christina. With the ecosystem changing at a rapid pace, her advice to startups is to take the harder way to seek growth—by building sustainable, realistic, and less trend-driven businesses.
“When you look at the startups that succeed versus those that fail, this becomes all the more true. It isn’t about just chasing trends. It is important to grow with strong unit economics in place,” says Christina.
(The story has been updated to reflect the correct stylisation of the company name)