In5 start-up scheme is picking winners
Dubai Internet City’s incubator programme has raised Dh1.4b so far
Fintech-focused start-ups are emerging as the favoured category in Dubai Internet City’s in5 incubator programme, as more UAE and Gulf residents take to digital payments and services.
“Is there anyone using cash these days?” queries Ammar Al Malik, Managing Director at Dubai Internet City, which confirmed that companies in the in5 programme have collectively raised more than Dh1.4 billion from investors and venture capital funds. There was no slackening even last year, with 150 companies signing up and taking the total in5 portfolio to 500.
“Fintech had a renaissance, a clear one, in the last 18 months,” Al Malik said. “This category is still at the beginning of an acceleration — and one that will completely transform digital payments.”
Of that Dh1.4 billion raised by in5 firms to date, one fintech — tabby — raised a whopping Dh485 million, and that too most of it last year. The company is into ‘buy now pay later’ services, which has emerged as a payment option of choice for smaller ticket purchases on zerointerest. The other winner from last year is eyewa, which started off as a pure e-commerce player in eyewear. After raising more than Dh77 million, it now plans to have a 100 brick-and-mortar store network in the Gulf.
Picking winners
Whatever be the case, in5 seems to have developed the knack of picking winners. Al Malik calls it the region’s biggest incubator. While Dubai Internet City and in5 do not make direct investments in any of the start-ups that enter the programme, they offer a chance for outside investors to weigh that start-up’s prospects and put in funds into them.
“The start-ups are chosen by an independent committee and we have academia, investors and multinational representatives in that,” said the top official. “While we do not invest, we offer a whole lot of subsidies — on real estate, the visas and more. Then there is the mentoring services. “Typically, these programmes last for three years, and in some cases, they can go beyond that.”
This category is still at the beginning of an acceleration — and one that will completely transform digital payments.”
Ammar Al Malik | Managing Director at Dubai Internet City