Notable Drop-Offs Among MENA’s Most Funded Startups
A total of 30 companies dropped off our list of the Top 50 Most Funded Startups in MENA since we last released it in December 2020. Some were not considered due to being older than seven years, while others did not have enough funding as of December 2021. Here are four notable startups that didn’t make it to the 2021 ranking.
A total of 30 companies dropped off our list of the Top 50 Most Funded Startups in MENA since we last released it in December 2020. Some were not considered due to being older than seven years, while others did not have enough funding as of December 2021. Here are four notable startups that didn’t make it to the 2021 ranking.
Swvl
Mass transit system Country: U.A.E.
Establishment: 2017
Previous Funding: $92 million Reason for exclusion: Going public via a SPAC merger
At the end of July 2021, Swvl announced a merger with U.S. special purpose acquisition company (SPAC) Queen's Gambit Growth Capital, allowing Swvl to become a publicly listed company. Post-merger, the Dubai-based bus-booking app will have a fully diluted equity value of around $1.5 billion, making it one of the latest unicorns to emerge from the Middle East and the first from the region to be listed on the Nasdaq stock exchange. The transition will provide the mass transit company with $445 million that will be used to support its goal of reaching more than $1 billion in annual gross revenue and expanding its operations into 20 countries by 2025.
Swvl was founded in Egypt in 2017 by Mostafa Kandil, Mahmoud Nouh, and Ahmed Sabbah. The firm relocated its headquarters to Dubai in late 2019. Swvl offers daily commuting, intercity retail travel, and TaaS transportation solutions through its application. It operates in 32 cities and 16 countries across Europe, Africa, Asia, the Middle East, and Latin America. It ranked second on Forbes Middle East's Top 50 Most-Funded Startups 2020 list, with $92 million in total funding at the time.
iKcon
Tech-focused cloud kitchens operator Country: U.A.E.
Establishment: 2019
Previous Funding: $32 million Reason for exclusion: Acquisition iKcon (Innovative Kitchen Concepts) was fully acquired in November 2021 by U.S.-based operator of delivery kitchens, logistics, and proximity hubs, REEF Technology Inc., for an undisclosed amount. The deal marks REEF's first transaction in the MENA region. It was backed by SoftBank and Mubadala Capital, the asset management subsidiary of Abu Dhabi's SWF Mubadala Investment Company. Founded in 2019 by Khalid Baareh and Kareem Abughazaleh, iKcon operates cloud kitchens, which cooks and delivers food on behalf of restaurants, employing over 800 people. It ranked 26th on Forbes Middle East's Top 50 Most-Funded Startups 2020 list, with $10 million in total funding at the time. By the time it was acquired, it had raised $32 million in total funding.
Halan
Two and three-wheeler ridehailing and e-commerce app Country: Egypt
Establishment: 2017 Previous Funding: $23.5 million Reason for exclusion: Swap Deal; Acquisition
In June 2021, Egypt's Halan signed a share swap agreement with the Netherlands' MNT in a deal that allows Halan shareholders to own shares in MNT, creating MNT-Halan. Soon after the deal, the newly created fintech startup raised $120 million in September from investors, including Apis Growth Fund II, Development Partners International (DPI), and Lorax Capital Partners. The new round of funding was the largest in the MENA region's fintech industry at that point.
Egypt-based auto-seller Ghabbour Auto, one of MNT-Halan's lead investors, announced in its Q3 2021 financial results that it had acquired the startup through its NBFS segment, GB Capital. GB Auto, the parent company of GB Capital, owns 57.26% of MNT-BV as of September 2021.
Founded in 2017 by Mounir Nakhla, Ahmed Mohsen, and Mohamed Aboulnaga, the ride-sharing, and delivery app Halan ranked 10th on Forbes Middle East's Top 50 Most-Funded Startups 2020 list, with $23.5 million in total funding at the time.
Tamatem Mobile games publisher Country: Jordan
Establishment: 2013
Previous Funding: $10 million Reason for exclusion: 7+ years old
Mobile games publisher Tamatem works with international developers to localize their games and make them relevant to the MENA market. The Jordan-based firm has hit 100 million game downloads, one million monthly active users, and over 50 published games.
Tamatem—which means ‘tomato' in Arabic—raised $11 million in a Series B funding round in November 2021 led by Krafton, the South Korean video game developer behind the popular battle royale game PUBG. This round— which included Venture Souq, Endeavor Catalyst, and existing investors—increased Tamatem's total funding to over $17 million to date.
Founded by Hussam Hammo, Tamatem ranked 27th on Top Forbes Middle East's 50 Most-Funded Startups 2020 list, with $10 million in total funding at the time.