The UAE is turning out to be a regional innovation and entrepreneurial hub, as startups in the UAE raise huge sums to scale up their operations. Startups based in the UAE led the region, raising $61.8 million across 15 deals. It is time for a funding round-up, and it’s quite remarkable that three UAE-based companies such as; UnifyApps, Epik Foods, and Pemo-are. These startups, which range from SaaS, food and beverage, to fintech, have managed to raise capital to fuel their growth and extend their reach into more regions.
UnifyApps Raises $20 Million in Funding for Its Middle East Expansion
UAE-based SaaS provider UnifyApps raised $20 million in Series A funding. In the investment round, Iconiq Growth was the lead investor with participation from Elevation Capital; thereafter till 2023, with a total fund raised of $31 million in total funding.
Co-founded by Pavitar Singh and Abhishek Khurana, UnifyApps automates enterprise workflows across multiple applications. According to Iconiq Growth’s general partner Matt Jacobson, the company was unusual about its approach in how it applied AI, “By aligning every data source and application to an enterprise use, they are enabling AI to actually understand and orchestrate work,” he said.
Pavitar Singh, CEO of UnifyApps, emphasised the strategic value of the partnership with Iconiq Growth, saying it was “instrumental in supporting the company’s plan to scale its AI agent platform across enterprises worldwide.”
Epik Foods Raises $15.5 Million for Regional Expansion
Epik Foods, the UAE food and beverage group, said on Tuesday that it has secured $15.5m in private equity funding from Ruya Private Capital I, LP, managed by Ruya Partners. The money will be used for acquisitions and working capital as part of expansion plans-including a big push in Saudi Arabia while enhancing its operations in the UAE.
Epik Foods is a company that resulted from the 2023 merger of KR&CO, Sweetheart Kitchen, and Happy Platters Kitchens. The company is partnered with Gulf Islamic Investments, with an asset base of $4.5 billion.
Founded by Khaled Fadly and Ranya Basyuni, the company operates 60 brands through 50 outlets in the UAE and Saudi Arabia. Planning another 20 outlets, Epik Foods is to grow its regional presence bigger.
Pemo Secures $7 Million in Funding, Eyes Middle Eastern Expansion
UAE-based fintech startup Pemo announced it raised a successful funding round of $7 million. The funding round was led by Augmentum Fintech, which provided $4 million in the financing round. Co-founded by serial entrepreneurs Ayham Gorani, Valerie Konde, Alessandro Duri, and Saed Ghorani in 2022, Pemo specifically deals with expense management and business payments, which include corporate card services tailored for small and medium-sized enterprises.
The new investment will further pace Pemo’s expansion in the Middle East. More refinement of user experiences and scaling of innovative solutions can now be done. Currently, Pemo serves its operations in Dubai, Saudi Arabia, and Egypt, moving closer to realising untapped potential in the region for SME-focused financial tools.
The investment by Augmentum is joined by contributions from other marquee players including Abu Dhabi-based Shorooq Partners as well as Cherry Ventures, Speedinvest, and Fintech Collective existing investors. As part of the partnership, Perry Blacher, Partner at Augmentum Fintech will join Pemo’s board and provide strategic guidance to fuel further growth.
While commenting on the development, CEO of Augmentum Fintech, Tim Levene, said that the Middle East is a market of fast growth for fintech, “Pemo represents an outstanding opportunity to empower SMEs through advanced financial solutions. We look forward to working with Pemo’s talented team,” he said. Co-founder Ayham Gorani was also upbeat about new funding and said that “Pemo is committed to helping businesses operate with accessible financial tools and to expansion into new geographies.”
UAE Startup Ecosystem Awaits Explosive Growth
The UAE and the wider GCC region is set for a spate of funding with strong macroeconomic fundamentals coming at the right time when investors are really looking to invest. Venture capital investment in the UAE is expected to continue growing well and is projected at the end of 2024 at $2 billion, having exceeded $638 million in 2023. It is projected that this growth will spillover into 2025 and funds are expected to reach $2.5 billion.
This has increased the demand for equity investments, and investors are more interested in investing in startups showing a stable revenue stream rather than purely growth-able models. Fintechs are likely to be one of the primary beneficiaries of this shift since they could now easily scale with debt options without diluting their equity.
While the landscape is bright, experts also foresee a natural progression involving failure of some startups, consolidation, and acquihire deals as the ecosystem matures. Market leaders, innovators in digital payments, SME lending, and other high-growth sectors will attract massive capital.
Strong investor confidence and robust economic fundamentals are supporting the dynamism of startup ecosystems in the UAE. Venture capital investment in the region is expected to cross more than $2 billion by the end of 2024, so innovation is galore. There’s UnifyApps, there’s Epik Foods, and Pemo-these startups are making all the right moves, leveraging strategic partnerships and funding to scale their operations and drive change in their industries. The maturing of the ecosystem will make the UAE stay as a breeding ground for pioneering ideas and investment opportunities.
