by admin | Sep 16, 2024 | Startups News
As technology continues to evolve, Saudi Arabia is, without a doubt, taking bold steps to modernize religious pilgrimages. In fact, Riyadh-based fintech startup UmrahCash has just secured a $500,000 investment from Adaverse, which marks a significant step in enhancing financial inclusion for pilgrims visiting Mecca, Medina, and Jeddah. Moreover, this development highlights Saudi Arabia’s ongoing commitment to improving the pilgrim experience.
A Fintech Solution for Pilgrims
Founded in 2024 by William Phelps, UmrahCash specifically addresses the financial challenges many international pilgrims face. First and foremost, pilgrims from developing nations often struggle to exchange currency for Saudi Riyals (SAR). Typically, the process involves multiple exchanges, which, as a result, lead to higher fees and the risk of carrying large amounts of cash.
However, with UmrahCash, this process becomes much simpler and more secure. Pilgrims can now make payments in their home countries and, consequently, receive Saudi Riyals upon arriving in Saudi Arabia. Additionally, by using advanced technology, UmrahCash eliminates the need for intermediaries, thereby creating a more transparent, secure, and cost-effective experience.
Investment Fuels Expansion
Not only does the $500,000 investment from Adaverse provide a crucial boost, but it also enables UmrahCash to expand its operations in Saudi Arabia. As a result, this funding will significantly improve the company’s infrastructure and service offerings. Furthermore, this investment perfectly aligns with Saudi Arabia’s broader objectives to modernize the Umrah and Hajj industry, especially as part of Vision 2030.
In 2023, Saudi Arabia welcomed more than 26.8 million Umrah performers. This record-breaking number, in particular, demonstrates the Kingdom’s dedication to enhancing the pilgrimage experience. Therefore, as the number of pilgrims continues to rise, the demand for efficient financial solutions becomes increasingly important.
Serving the Needs of International Pilgrims
Notably, a large percentage of these pilgrims come from emerging markets such as Nigeria and Pakistan. For many, accessing Saudi Riyals can be particularly challenging. Consequently, UmrahCash steps in to solve this problem by offering a seamless currency exchange process.
Moreover, the UmrahCash app connects liquidity providers, agents, and pilgrims on a single, secure platform. Consequently, the process becomes streamlined and more transparent. Thus, international pilgrims can now handle their finances more easily and securely during their sacred journey.
Aligning with Vision 2030
As part of its Vision 2030, Saudi Arabia is, without question, focused on enhancing the Hajj and Umrah experience. In fact, the Kingdom has already invested over $1.3 billion to improve its holy sites and make processes like visa applications more efficient.
Additionally, Saudi Arabia’s Minister of Hajj and Umrah, Dr. Tawfiq Al-Rabiah, has repeatedly emphasized the role of technology in improving the pilgrimage experience. By embracing fintech solutions like UmrahCash, the Kingdom continues to promote financial inclusion. In doing so, it ensures that pilgrims can, above all, focus on their spiritual journey without worrying about complex financial issues.
Conclusion
As UmrahCash expands, it is, undeniably, poised to revolutionize payments for pilgrims. This fintech solution is not only about offering easy access to Saudi Riyals. Rather, it is about improving the overall experience for millions of pilgrims. Thanks to the investment from Adaverse, UmrahCash is now in a stronger position than ever to modernize the Umrah and Hajj industry. By combining tradition with technology, UmrahCash is making the pilgrimage more seamless, secure, and inclusive for all.
Learn more about the latest fintech innovations at kzaad.com.
by admin | Sep 11, 2024 | Startups News
UAE-based fintech FlapKap has successfully raised $34 million in a pre-Series A round, combining both debt and equity financing. BECO Capital led the round, while Pact VC, A15, Nclude, QED Investors, and Channel Capital also contributed. This funding marks a major milestone in FlapKap’s growth journey.
Founded in Egypt in 2022 by Ahmad Coucha, Khaled Nassef, Sherif Bichara, and Kunal Harisinghani, FlapKap offers financial solutions designed for small and medium enterprises (SMEs). The company helps SMEs boost their inventory and digital advertising spend with quick access to cash, which they can repay later. Consequently, these businesses can scale more effectively.
Rapid Growth and Expansion Plans
Previously, FlapKap raised $3.6 million in seed funding in 2022, increasing the total funding to $37.6 million. With this new investment, FlapKap plans to extend its services across the Gulf Cooperation Council (GCC) and Middle East and North Africa (MENA) regions. Additionally, they will enhance their technology infrastructure to launch new trade finance products for B2B businesses. This strategic move will strengthen FlapKap’s position in the fintech industry.
FlapKap’s Innovative Approach
FlapKap distinguishes itself through its data-driven approach in evaluating loan applicants. The platform integrates data from eCommerce platforms, social media, and bank accounts to assess businesses. Additionally, AI-powered models and open banking streamline the process and cut operational costs, enabling FlapKap to deliver loan offers within 48 hours. This approach not only accelerates the process but also provides SMEs with flexible and accessible financing options.
Addressing the SME Financing Gap
SMEs represent 90% of businesses in the MENA region, yet many face difficulties in securing funding. FlapKap addresses this issue by automating the lending process. According to the International Finance Corporation, the SME financing gap in MENA totals $180 billion. By bridging this gap, FlapKap ensures that more SMEs can access the funds they need to grow.
For more startups and investment news, stay updated with our daily blogs. Explore the latest trends, funding rounds, and industry insights to keep informed and ahead in the dynamic world of startups.
by admin | Aug 23, 2024 | Startups News
Lahore-headquartered startup PostEx has raised $7.3 million in a pre-Series A round, led by Dubai-based Conjunction Capital. Consequently, this new funding brings the total to around $16 million. Investors include Dash Ventures, Sanabil500, and existing supporters such as VentureSouq, FJ Labs, and Zayn VC.
PostEx: Evolution from Logistics to Financial Solutions
Founded in 2020 by Omer Khan, Saad Mahmood, Babar Razzaq, and Adil Naseem, PostEx started as a third-party logistics provider for e-commerce. It has since evolved to offer Shariah-compliant, non-dilutive financing, leveraging data from its logistics services.
To date, PostEx has loaned $90 million to over 8,000 businesses, quickly converting recurring revenue into instant capital, though specific loan details are not provided on their website.
Strong Market Position and Future Plans
ostEx has shown strong performance with an annual revenue run rate of $21 million and over four million transactions monthly. It has been profitable for several months and strengthened its position by acquiring Call Courier, a leading e-commerce logistics firm in Pakistan.
Looking ahead, PostEx plans to use its latest funding to expand into MENA, starting with Saudi Arabia. A pilot is underway, and the company aims to secure a local license for its financing solutions. In the UAE, PostEx has already obtained a license and is preparing for a future launch.
Insights from Leadership
Muhammad Omer Khan, CEO of PostEx, said, “Traditional banks often fail digital entrepreneurs. PostEx provides essential growth capital through our logistics solution.”
Conclusion
PostEx’s recent funding round marks a pivotal moment for the startup as it gears up to broaden its reach across MENA. With a strong foundation and a clear vision for the future, PostEx is set to transform e-commerce financing and support the growth of digital businesses in the region.
Stay tuned for more updates and insights on the latest developments in fintech and logistics. For further details, visit kzaad.com.
by admin | Aug 20, 2024 | Startups News
Resal, a pioneering Saudi Arabian e-gifting platform, has successfully secured a $9 million Series A funding round. Importantly, Merak Capital led this round, along with participation from strategic investors. As a result, this investment will propel Resal’s mission to create a comprehensive digital ecosystem for rewards, loyalty programs, and alternative payments.
A Robust Platform for Merchants and Consumers
In 2016, industry veterans Abdullah Alfarhan and Hatem Kameli founded Resal, developing a robust platform that empowers merchants to engage with customers through loyalty programs and digital cards. In addition, consumers can manage and redeem rewards on a centralized platform. Thus, the platform creates a win-win situation for both merchants and consumers.
Strategic Investment Fuels Expansion
Moreover, this capital infusion will enable Resal to accelerate its growth trajectory. Specifically, the company plans to expand its product offerings and strengthen its technology infrastructure to reach a wider audience and deepen its market penetration. Consequently, Resal is poised to make a significant impact in the digital payments sector.
A Vision for the Future
Resal’s founders and leadership team envision a compelling future for digital payments. With the support of strategic investors, they aim to establish the company as a dominant player in the region’s rapidly evolving fintech landscape. Therefore, Resal is set to capitalize on emerging opportunities in this dynamic market.
Driving Innovation and Growth
Resal demonstrates its commitment to innovation by creating a platform that seamlessly connects merchants, companies, and individuals. By leveraging technology to address the evolving needs of consumers and businesses, Resal is shaping the future of digital payments. As such, the company continues to drive both innovation and growth in the fintech industry.
by admin | Aug 14, 2024 | Market Trends
Startup funding in the Middle East and North Africa (MENA) region witnessed a remarkable surge in July 2024. Notably, investments soared to USD 355 million, reflecting a dramatic 206% increase from the previous month and a 260% rise compared to July 2023. Consequently, this unprecedented growth highlights the burgeoning opportunities within the MENA startup ecosystem.
Key Highlights
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Egypt Takes the Lead
Firstly, Egypt emerged as the standout performer in July, securing USD 185 million across seven deals. This impressive figure not only eclipsed the USD 15 million raised in the previous month but also underscores Egypt’s rising prominence in the regional startup landscape.
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Sector-Specific Investment Trends
- Fintech: Dominating the investment landscape, the fintech sector attracted USD 180.8 million. This demonstrates its continued appeal to investors.
- Web 3: Following closely, Web 3 startups secured USD 85 million. This reflects the growing interest in decentralized technologies.
- Cleantech: Meanwhile, with a focus on sustainable solutions, the cleantech sector raised USD 37 million.
In addition, other notable sectors included deeptech, with USD 20 million, and e-commerce, which garnered USD 15.7 million.
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Regional Investment Distribution
The UAE led the region with 12 deals, thus setting a benchmark in startup investments. Furthermore, Egypt and Saudi Arabia each secured seven investments, while Jordan rounded out the top with six deals. This distribution illustrates a diverse and expanding investment landscape across the MENA region.
Conclusion
In summary, the surge in startup funding in the MENA region during July 2024 underscores a vibrant and rapidly evolving market. With Egypt leading in investment value and fintech emerging as the most attractive sector, the region is poised for continued growth and innovation. As startups across the MENA region continue to attract significant investments, the future looks promising for entrepreneurs and investors alike.
For more insights into the latest developments in the startup ecosystem, visit kzaad.com and stay tuned for daily updates.
