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9 most funded ride-sharing startups in MENA 2022
The shared mobility market in the MENA region is set to expand with a compound annual growth rate of 18.4% from 2022 to 2030 as the yearly demand is predicted to witness a 16.9% increase, according to Grand View Research Inc.
The shared mobility technology landscape, including ride-sharing, car-renting, and taxi-ordering models, has increased since global players such as Uber and Lyft swept the field.
We’ve compiled a list of the MENA region’s most funded ride-sharing startups:
1. Careem
Total funding amount: $771.7 million
Founders: Mudassir Sheikha and Magnus Olsson
Investors: Alpha Partners, Arzan Venture Capital, BECO Capital, Bild Alternative Investment, Coatue Management, and 22 others
Headquarter(s): UAE
Recognized to be the Middle East’s first unicorn startup, Careem has transformed the ride-hailing sector in the region, attracting global competition and acquisitions to the industry.
The company first started as a car-booking app. It later entered the food delivery space and now operates as a super app.
Founded in 2012, Careem is the second most funded startup in the region. It obtained unicorn status in 2018 and was later acquired by global ride-hailing giant Uber for $3.1 billion in 2020.
2. Swvl
Total funding amount: $264 million
Founders: Mostafa Kandil, Mahmoud Nouh and Ahmed Sabbah
Investors: BECO Capital, Endeavor Catalyst, MSA Capital, Oman Technology Fund, Arzan Venture Capital, Sawari Ventures, VNV Global, and others
Headquarter(s): Founded in Egypt, based in the UAE
Founded in 2017, Swvl is a tech-enabled mass transit solutions provider offering intercity, intracity, business-to-business, and business-to-government transportation services.
The company is another unicorn founded in the MENA region, also listed on the Nasdaq.
Currently operating in 20 countries across four continents, Swvl went public after it completed a merger with particular purpose acquisition company Queens Gambit Growth Capital and was valued at $1.5 billion in March 2022.
3. Halan
Total funding amount: $146.4 million
Founders: Ahmed Mohsen, Mohamed Aboulnaga, and Mounir Nakhla
Investors: Lorax Capital Partners, Disruptech Ventures, Bossanova Investimentos, Middle East Venture Partners (MEVP), Endeavor Catalyst, CDC Group, Apis Partners, and others
Headquarters (s): Egypt
Founded in 2017, Halan provides two and three-wheeler vehicle rides and on-demand logistics. It allows customers to request motorbike or tuk-tuk rides or order food or goods for delivery via motorbikes or cargo tricycles. The application also caters to businesses, offering smart-tech last-mile delivery through integrated smart services using motorcycles and tricycles.
The startup also offers on-demand logistics solutions to support large organizations and small businesses in their distribution and supply chains. It also provides convenience and safety while it offers incremental business for the driver. The application has partnered with fast-food chains like McDonald’s, KFC, and Pizza Hut in Egypt.
4. Yassir
Total funding amount: $43 million
Founders: Noureddine Tayebi and El-Mahdi Yettou
Investors: Y Combinator, P1 Ventures, French Partners, ACE & Co., Venture Souq, WndrCo, DN Capital, Kismet Capital, Spike ventures, Quiet Capital, Endeavor Catalyst, FJ Labs, Venture Souq, Nellore Capital, Moving Capital, and other investors
Headquarter (s): Algeria
Established in 2017, Yassir offers on-demand services such as ride-hailing and last-mile delivery in 25 cities across Algeria, Canada, France, Morocco, and Tunisia, with over 3 million users.
The startup started as a ride-sharing platform and later became a super app adding last-mile delivery and financial services for its users.
The company raised $30 million in series A funding in June 2021 in a bid to expand into Western Africa and Europe in 2022.
5. ekar
Total funding amount: $34 million
Founder: Vilhelm Hedberg
Investors: Polymath Venture, Audacia Capital, and other
Headquarter (s): UAE
Founded in 2016, ekar offers on-demand access to a network of car-share, subscription leasing vehicles, and other mobility options, including peer-to-peer rentals.
Operating across seven cities with a fleet of 2,300 vehicles and 250,000 users in Saudi Arabia and the UAE, the company is one of the region’s first fully contactless car-sharing apps.
The company raised $17.5 million in series B funding in 2019, announced its launch in Thailand in 2022, and plans to expand into Malaysia, Turkey, and Egypt later in the year.
6. Udrive
Total funding amount: $17.3 million
Founders: Nicholas Watson and Hasib Khan
Investors: Cultiv8 and Oman Holding International
Headquarter(s): UAE
Another car rental app Udrive provides a pay-per-minute rental service for UAE residents and tourists, clocking in over 2 million trips.
Founded in 2016, the company allows users to pick up a car from any location available and is then returned to any parking location in the same city.
In its latest funding round, Udrive raised $5 million to support its plans to expand in the Middle East and enhance its technology.
7. Fenix
Total funding amount: $5 million
Founders: Jaideep Dhanoa and IQ Sayed
Investors: Emkan Capital and Panthera Capital Ventures
Headquarter(s): UAE
Established in November 2020, Fenix provides a different kind of mobility using electric scooters on a subscription-based service.
Founded by two ex-Careem executives, the company has one of the largest electric vehicle fleets in the region as it operates in four cities.
In 2021, the company raised a $5 million seed funding to support its goals to become the first national micro-mobility operator in the Gulf Cooperation Council.
8. Telgani
Total funding amount: $4.2 million
Founder: Abdulkader Almkinzy
Investors: 500 Startups, Saudi Venture Capital Co., Impact46, and others
Headquarter(s): Saudi Arabia
A car rental platform, Telgani allows users to rent a car through its mobile app that is then delivered to their doorstep.
Founded in 2018, the company also enables users to pick the car and the location they want to travel to and provides them with nearby options.
In November 2021, Telgani secured a $2.5 million pre-series A funding led by Saudi venture capital firm, Impact46.
9. KOI Ride
Total funding amount: $3 million
Founder: Kayla Kroot
Investors: CEG Invest and Taurus Wealth
Headquarter(s): UAE
KOI Ride is a B2B ride-hailing service startup that offers end-to-end ground transport services and connects online booking portals with licensed transportation providers.
Established in 2015, the company offers services in Dubai, London, New York, Las Vegas, Cancun, Istanbul, Bodrum, Antalya, Izmir, and Dalaman.
In June 2022, KOI Ride raised $3 million in an investment round to support its expansion into 24 cities across Europe, the Americas, and the Middle East.
Lendo, a Saudi Arabia-based Shariah-compliant crowdlending marketplace, has signed a Memorandum of Understanding (MOU) today with J.P. Morgan to improve access to financing for small and medium-sized enterprises (SMEs) across the country.
The MOU was signed during 24 Fintech, a premier fintech event that brings together industry leaders, innovators, and investors in Riyadh.
J.P. Morgan and Lendo are working together on potential opportunities to support the SME sector in Saudi Arabia in growing and sustaining the remarkable demand in this market.
“This strategic collaboration with J.P. Morgan, a pioneer in the financial industry, marks a significant milestone for Lendo,” said Osama Alraee, CEO and co-founder of Lendo. “By combining our strengths, we’ll deliver cutting-edge financial solutions to SMEs, supporting their growth and contributing directly to the realization of Saudi Arabia’s Vision 2030.”
The SME financing landscape in MENA presents a substantial market opportunity as limited financial access continues to restrict the growth of the region’s businesses, with commercial banks hesitant to issue loans to SMEs at scale, resulting in a high percentage of declined financing requests annually.
The total SME financing gap in developing countries is estimated to be approximately $5.2 trillion, according to the International Finance Corporation (IFC).
Lendo’s debt crowdfunding platform aims to bridge the financing gap for SMEs, aligning with Saudi Vision 2030’s goal to significantly expand SME lending from 4% in 2018 to 20% by 2030.
According to the latest available report from the Saudi Central Bank (SAMA), the total value of debt crowdfunding in Saudi Arabia surged from SAR 1.4 million in 2019 to SAR 771 million in 2022, marking a remarkable growth.
Lendo raised SAR 132 million ($35.2 million) in total funding from leading investors, including the most recent Series B led by Sanabil Investments, a wholly-owned company by the Public Investment Fund (PIF).
Since its inception in December 2019, Saudi fintech Lendo has processed over 5,000 financing transactions on its platform, providing over SAR 2 billion ($600 million) in financing to SMEs and generating SAR 280 million ($74 million) in returns for investors.
TA Telecom, a prominent player in the Middle East’s tech sector, has unveiled AnteThink, an AI-driven tool designed to enhance decision-making processes for individuals and businesses alike.
With a history of influencing the tech landscape through various initiatives, including advanced mobile solutions, high-volume payment platforms, and ventures in e-commerce, fintech, and analytics, TA Telecom has carved a niche for itself. Serving a vast user base of 40 million and processing an impressive 15 billion transactions across its platforms, TA Telecom has cemented its position as a tech industry leader, with some of its ventures achieving the status of Y Combinator companies.
Established in 2000, TA Telecom has emerged as a prominent player in the technology sector. With over 40 million users and processing 15 billion transactions annually, TA Telecom has made a notable impact. Recognized for its contributions by the Financial Times and featured on Deloitte’s list of fastest-growing tech companies in EMEA, TA Telecom is known for its adaptability and forward-thinking approach in the ever-evolving global tech landscape.
Sameh Ibrahim, CEO of TA Telecom, highlights the potential of AnteThink: “AnteThink reflects our commitment to leverage technology for practical impact. It aims to provide clarity and confidence in decision-making, whether in the professional or personal sphere. AnteThink is a tool that can empower startup founders, executives, and individuals to make more informed choices, alleviating the stress and uncertainty often associated with critical decision-making.”
Mostafa Ashour, CEO of Y Combinator-backed startup NowPay, shared his perspective on AnteThink: “AnteThink transformed our strategic planning, allowing us to explore various scenarios and prepare for different outcomes. It has strengthened our decision-making process, helping us navigate the complexities of the business landscape.”
AnteThink embodies TA Telecom’s commitment to innovation, focusing on supporting the startup ecosystem. The tool is tailored to help leaders and executives navigate the complexities of business management and strategic development by providing a clear picture of potential outcomes.
Key Features of AnteThink include:
1. Second Order Mode: Offering a comprehensive analysis of broader impacts, fostering a strategic mindset for long-term success.
2. Optionality Mode: Enabling detailed evaluation and comparison of different choices to ensure decisions align with strategic objectives and values.
3. Inversion Mode: Focusing on identifying and mitigating potential risks, thereby strengthening risk management strategies.
Credit: Antethink
AnteThink’s advanced AI technology aims to assist decision-makers with insightful analytics, offering guidance through the decision-making process.
Selina Bieber, the Senior Director of Global Markets at GoDaddy, has predicted a significant increase in Egypt’s e-commerce revenue. By 2028, it could reach $9.88 billion.
Godaddy is forming strategic partnerships and launching initiatives to help local entrepreneurs. These efforts align with Egypt’s digital transformation goals and its Vision 2030.
In an interview with the Arabic financial news “Amwal Al Ghad,” Bieber spoke about GoDaddy’s plans and how they match Egypt’s 2023 strategy. She highlighted the company’s aim to provide effective, easy-to-use digital tools and services. By 2024, GoDaddy wants to serve more customers in Egypt by making its digital tools more widespread.
The company is working closely with the Egyptian government, especially the Ministry of Planning. They are offering training programs to improve the digital skills of startups and existing businesses. GoDaddy’s services in Egypt include domain registration, web hosting, e-commerce solutions, and digital marketing tools.
Recent surveys support Bieber’s positive outlook for e-commerce in Egypt. They show a clear trend towards digital strategies among small businesses. Many are realizing the importance of having an online presence for their growth and success.
As GoDaddy continues its partnerships and supports government digital initiatives, its influence on Egypt’s digital landscape is growing. The company is committed to sustainability and reducing its carbon footprint. It aims not just for business growth but also to contribute to a sustainable and thriving digital economy in Egypt.
The 2028 projection indicates a vast potential for e-commerce, with GoDaddy playing a key role in this digital evolution.
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