PC: PLAC Beam
Dubai’s entrepreneurial landscape is gaining momentum, in recent funding rounds that reflect confidence among investors toward the region’s tech-enabled ecosystem. Meanwhile, its tech ecosystem remains a bright spot as these funding rounds signal larger interest for innovation in both proptech and mobility. This week also saw proptech startup Prypco close $10 million in seed funding while car subscription platform Invygo raised $8 million for its regional expansion. Dubai has also come out with plans to fill the funding gap for startups, in a development related to the gap. The city launched its Ignyte digital platform for its pursuit of 5,000 venture capitalists that would fill these critical gaps in financing the SME sector. The latter remains largely underserved by traditional banks. This round-up captures those funding stories and the broader financial ecosystem shifts paving the way for entrepreneurs in Dubai.
Prypco Raises $10 Million to Scale Proptech Solutions
Prypco, founded just two years ago, has already demonstrated substantial growth and attracted $10 million in seed funding. The company focuses on digital-driven solutions aimed at transforming rapidly the face of the real estate industry using technological innovation. In funding rounds, the Dubai-headquartered proptech company garnered active involvement by Apparel Group and indicated strong support for this emerging firm with its significant prospect to upend customary practices in the real estate arena.
She was proud of what they were able to achieve, having bootstrapped before this funding. According to her, the partnership with Shorooq is much more important than mere investment because it comes with some expertise and guidance, apart from financial backing. “The investment is a great bonus, but we’re particularly happy about the team and have built a phenomenal relationship,” Sajwani pointed out.
Prypco has so far achieved impressive metrics, including a gross merchandise volume of over AED 450 million and revenues of AED8.2 million since its inception. The latest funding will fuel the company’s strategic expansion across various verticals within the real estate sector, reinforcing its commitment to providing innovative solutions that enhance transparency, efficiency, and accessibility in the market. The capital infusion puts Prypco on an aggressive growth trajectory, leaving it at the top position in the UAE proptech industry.
Invygo Secures $8 Million to Drive Growth in Car Subscription Services
Invygo, a Dubai-based company, is pioneering the subscription model, allowing people to lease vehicles in an easily accessible way to car ownership. The company has received $8 million in the extension round of its latest Series A, led by Saudi Arabia’s STV NICE Fund, while it attracted some existing investors, including Al Rajhi Partners, Arab Bank Ventures, SPV, MEVP, and C5. This funding round is in line with Invygo’s vision of becoming profitable by the end of FY 2024, which is a significant milestone for the firm as it scales operations in a highly competitive sector.
As one of the co-founders and CEOs of Invygo, Eslam Hussein noted that partnership with STV is key. “We are perfectly positioned to unlock new growth opportunities while keeping profitability firmly in sight with continued trust and support from existing investors,” said Hussein. He further observed that the company had successfully remained in growth for 24 months without taking external funding and was eager on sustainability from a financial point of view.
With the new funds raised, Invygo is now perfectly positioned to expand its flagship offering, “Subscribe to Own” (STO), which allows customers to apply their subscription payments toward eventual car ownership. Targeting changing consumer preferences and challenging conventional car ownership models, Invygo is effectively remodelling the region’s mobility sector. The new funds will help the company scale operations, refine its platform, and increase its market penetration while eyeing regional expansion and enhanced service offerings.
Dubai’s New Ignyte Platform Seeks to Attract 5,000 Venture Capitalists to Address Funding Gaps
Dubai has introduced Ignyte, an innovation developed by the Dubai International Financial Centre to strengthen its venture ecosystem amid rising fears that there is a funding constraint- this time especially for the small and medium-sized enterprise (SME). Under this initiative announced by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, more than 100,000 start-ups will be connected with 5,000 venture capitalists, 5,000 mentors, and 500 corporate and government partners. It follows the emirate’s policy to support its growing ecosystem of startups and reduce the dependence on traditional banking as the primary source of early-stage funding.
According to Lucy Chow, general partner of the investment fund of the World Business Angels Investment Forum, “the early stage funding ecosystem is quite developed in Dubai; however, there is a huge gap in follow-on capital when looking at international ambition.” The latest statistics from the UAE central bank highlight this problem, as only AED 81 billion of the total AED856 billion in loans granted by UAE banks in the first half of 2024 were allocated to SMEs, meaning alternative funding streams are needed to support the wider entrepreneurial community.
Funding announcements for Prypco and Invygo this week show that an investment landscape is maturing in Dubai. Sectors like real estate and mobility have attracted some of the biggest names. The platform Ignyte, now launched by Dubai, reinforces the city’s commitment to filling funding gaps for SMEs and creating a dynamic ecosystem for entrepreneurs to flourish in. While private banks remain focused on established companies, the emergence of private credit and venture debt has presented other potential routes of access for startups looking to raise funds beyond early-stage rounds.
As Dubai strives to become the global innovation hub, moves such as Ignyte in conjunction with rising venture capital interest in technology-driven sectors is setting up for a growth spurt of a different kind. The strategic play on alternative funding models and venture debt will be critical to Dubai’s efforts to strengthen its place as a capital for Middle East startups.
