Saudi Press

Saudi Arabia and the world
Friday, Aug 22, 2025

Saudi startup ecosystem takes a huge leap

Saudi startup ecosystem takes a huge leap

Saudi Arabia’s startup ecosystem took a giant leap in the world of funding and venture capital with seven investment firms earmarked $636 million to stimulate innovation and entrepreneurship in the Kingdom.

The announcements were made during the LEAP2023 held in Riyadh last week. Saudi and regional venture capital firms launched massive funding programs to support startups in the region.

Saudi-based venture capital firm STV launched its first fund worth $150 million for alternative financing compatible with the Shariah law while Riyadh-based IMPACT46 also announced a $133 million fund, which targets emerging technology companies in the Kingdom and the Middle East.

Another Saudi venture capital firm, Merak Capital, launched a fund valued at $53 million.

Announcements at the event also included Rakeza’s venture capital fund backed by a global business accelerator in Riyadh valued at $25 million as well as Saudi venture builder BIM Ventures’ $100 million fund in partnership with Al-Sulaiman Group.

UAE-based venture capital firm Shorooq Partners launched a fund estimated to be worth $115 million to accelerate electronic games in the region while investment firm Planetary Capital floated the first Saudi-Canadian corpus to invest in emerging space technology companies, both local and global, amounting to $30 million.

Saudi venture capital firm Flat6labs also dedicated approximately $20 million to its Startup Seed Fund which aims to invest in early stage startups. Saudi Aramco announced that additional funds had been allocated by the company to Wa’ed Ventures, increasing the size of its Kingdom-focused venture capital arm from $200 million to $500 million.

Saudi-based palm.hr closed a $5 million funding round on Wednesday.


LEAP 23 also witnessed open-banking platform Tarabut Gateway signing a deal with Tamam, a Saudi micro-lending provider.

Nana secures $133m in its cart


Nana, Saudi Arabia’s dark store grocery delivery startup, raised $133 million in a series C funding round last Wednesday led by Kingdom Holding Co. and Uni Ventures with participation from other investors.

Established in 2016, Nana is a digital grocery shopping platform in the Kingdom that operates in a dark store model whereby orders are delivered to customers within 15 minutes.

“This milestone will serve as a motivator for us to strengthen Nana’s position as the leading company within the region, as the success of this round heavily supports our expansion plans and continuity toward the provision of more diversified services that serve all stakeholders,” Sami Alhelwah, CEO of Nana, said in a statement.

The company plans to utilize its funding to add more diversified services as well as expand its presence in the region.


Sultan Holding, Al-Jasser Holding, Red Diamond Co., Dallah Al-Baraka Group, and Al-Jammaz Holding took part in the funding round.

HR tech platforms


Saudi-based human resources technology platform palm.hr closed a $5 million pre-series A funding round on Wednesday to accelerate regional expansion.

Founded in 2019, palm.hr delivers a streamlined and intuitive work experience for teams handling onboarding, vacation tracking, and payroll operations.

“With the backing of our investors, we are excited to kick off our next stage of growth and play a role in contributing to the future of the region’s economy,” said Richard Schrems, CEO and co-founder at palm.hr.

The company will also utilize its funding to scale up its product offering as well as hire to support its customer acquisition journey.

The funding round was co-led by venture capital firms Speedinvest and RAED Ventures with participation from Wamda Capital.

Another Saudi-based HR technology startup, Marn, closed $1 million in a post-seed funding round last Thursday led by Sukna Ventures with participation from Al-Majdia investment.

Established in 2017, Marn utilizes artificial intelligence and machine learning to provide recruitment solutions as Saudi Arabia’s first flexible work platform.

“With the tremendous growth of the local economy, there is a need for providing innovative recruitment solutions to keep up with it,” said Mohammad Al-Sabeeh, founder and CEO of the startup.

Based in Riyadh, the company will use its new investment to expand its team and customer base as well as create more opportunities for job seekers.

Healthtech platform


Egypt-based healthtech platform Yodawy raised $16 million in an initial close of its series B funding round on Thursday co-led by Delivery Hero Ventures, the venture capital firm of global food delivery platform Delivery Hero, and Global Ventures, a UAE-based venture capital firm.

Founded in 2018, the healthtech startup offers a marketplace where patients can process prescriptions and place an online order for medicines.

The platform has processed over 4 million prescriptions to date and partnered with 20 health insurance companies, 3,000 pharmacies, and more than 300 corporates in Egypt while raising a total of $24.5 million to date.

The company plans to use the fresh funding to drive the growth of its signature Care Program for chronic patients, continue to automate its operations as well as support its regional expansion strategy.

Moreover, Kuwait’s online flower and gift delivery platform Floward closed $156 million in a pre-IPO series C funding round on Tuesday led by Aljazira Capital, Rainwater Partners, and STV.

The company will use its funding to expand its gifting verticals and enhance its customer experience using AI and machine learning as well as ramp up its acquisitions and mergers activity.

Bahrain’s fintech Aion Digital closed a $5 million bridge round last Thursday led by Fintactics Ventures, which is a $40 million fintech-focused venture fund launched during the LEAP23 event in Riyadh.

Founded in 2017, Aion provides an API-based digital banking platform, enabling its clients to create personalized digital products to increase customer engagement.

Aion recently opened offices in the Kingdom and plans to utilize its funding to expand its presence across the region.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Cristiano Ronaldo Makes Surprise Stop at New Hong Kong Museum
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
High-Stakes Trump-Putin Summit on Ukraine Underway in Alaska
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Nine people have been hospitalized and dozens of salmonella cases have been reported after an outbreak of infections linked to certain brands of pistachios and pistachio-containing products, according to the Public Health Agency of Canada
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
Tariffs, AI, and the Shifting U.S. Macro Landscape: Navigating a New Economic Regime
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
OpenAI’s Bold Bet: Teaching AI to Think, Not Just Chat
BP’s Largest Oil and Gas Find in 25 Years Uncovered Offshore Brazil
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Russia Formally Recognizes Taliban Government in Afghanistan
×