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RIYADH: Startups across the Middle East and North Africa kicked off the second quarter of 2025 with a wave of funding rounds, acquisitions, and strategic mergers.

The activity reflects continued investor confidence in sectors ranging from fintech and food tech to health tech and Software-as-a-Service. 

����ֱ�� and the UAE led the charge, underscoring their growing prominence as hubs for regional startup innovation. 

Fintech startup Erad, based in the Kingdom, has raised $16 million in a pre-series A funding round with participation from Y Combinator, Nuwa Capital, and Khwarizmi Ventures, as well as Aljazira Capital, VentureSouq, Oraseya Capital, and Joa Capital. 

The round follows its $2.4 million pre-seed raise three years ago, backed by several of the same investors. 

Founded in 2022 by Salem Abu-Hammour, Faris Yaghmour, Abdulmalik Al-Meheini, and Youssef Said, Erad provides Shariah-compliant, data-driven financing to micro, small and medium-sized enterprises in ����ֱ�� and the UAE. 

“While SMEs continue to power the GCC (Gulf Cooperation Council) economy, entrepreneurs in retail, F&B (food and beverage), healthcare, and beyond struggle to secure the capital they need to scale up. Over 60 percent of our customers are first-time credit takers, and we are proud to be partners in their growth while fostering financial inclusion,” Abu-Hammour said. 

The company claims its platform enables access to funding in as little as 48 hours. The new capital will support Erad’s geographic expansion, local hiring, and product development, aligning with Saudi Vision 2030’s goals to increase SME economic contribution.

Techrar secures $1.6m to scale recurring billing platform 

Techrar, a Saudi subscription and billing management platform, has raised $1.6 million in funding led by Wa’ed Ventures, the venture capital arm of Aramco. 

Founded in 2022 by Safwan Saigh, Fawzan Al-Khlawi, and Rania Shaker, Techrar focuses on managing subscriptions, memberships, and recurring billing. 

The investment will be used to expand the team, develop new products, and support customer acquisition.

iMENA Group secures $135m  pre-IPO investment 

Saudi-based iMENA Group has raised $135 million in a pre-initial public offering funding round through a combination of private placement and in-kind contributions. 

The round included participation from Sanabil Investments, FJ Labs, and SellAnyCar founder Saygin Yalcin, among other Saudi investors. 

Co-founded in 2012 by Nasir Al-Sharif, Khaldoon Tabaza, and Adey Salamin, iMENA is the parent company of platforms including OpenSooq, SellAnyCar, and Jeeny. 

The company will use the funds to increase its stake in these core businesses, pursue vertical and geographic expansion, and improve operational synergies across its portfolio. 

Healthtech startup Tuba raises $8m pre-seed round 

����ֱ��-based health tech startup Tuba has secured $8 million in a pre-seed funding round led by Al-Waalan Investment with participation from angel investors.  

Founded in 2025 by Fayez Al-Anazi, Tuba leverages artificial intelligence to enhance healthcare management by improving operational efficiency and creating more transparent, patient-centric experiences. 

The funds will be used to build technical infrastructure, grow the team, and scale operations in line with its vision of digitally transforming the healthcare sector. 

STV launches $100m Shariah-compliant fund

STV has announced the final close of its $100 million STV NICE Fund I, a non-dilutive capital vehicle aimed at supporting the growth of tech startups in ����ֱ�� through Shariah-compliant financing solutions.

Backed by SAB Invest’s Alternative Financing Fund, a CMA-licensed private fund, and several regional family offices, the initiative is supported by the National Technology Development Program.

The fund seeks to fill a key financing gap by offering non-dilutive capital to early- and growth-stage technology ventures.

Fuze raises $12.2m to expand infrastructure 

UAE-based fintech Fuze has raised $12.2 million in a series A round led by Galaxy and e& capital, with participation from Further Ventures. 

Founded in 2023 by Mo Ali Yusuf, Arpit Mehta, and Srijan Shetty, Fuze provides Digital-assets-as-a-Service, over-the-counter trading, and stablecoin infrastructure. 

The company says it has processed over $2 billion in digital asset volume to date. The funds will be used to accelerate regional and global expansion, enhance product offerings, and grow the team. 

Calo enters UK market through dual acquisition 

Saudi-headquartered food tech startup Calo has expanded into the UK with the acquisition of Fresh Fitness Food and Detox Kitchen, two established brands in the health-focused food delivery sector. 

Founded in Bahrain in 2019 by Ahmed Al-Rawi and Moayed Al-Moayed, Calo offers personalized meal subscriptions for health-conscious consumers. 

The company raised $25 million in a series B round in December 2023, led by Nuwa Capital, with participation from STV, Khwarizmi Ventures, and regional family offices. 

Calo currently operates in ����ֱ��, the UAE, and Bahrain, as well as Qatar and Kuwait, and plans to go public in ����ֱ�� by 2027. 

Miran and Welnes merge to form holistic health platform 

AI-driven health and fitness app Miran has merged with Welnes, a fitness community platform, in a strategic move to combine personalized technology with a community-based approach. 

Miran offers tailored meal plans, workout routines, and health insights through AI. Welnes, backed by Flat6Labs, Samurai Incubate, UI Investments, and angel investors, connects users with coaches and wellness programs. 

The merged entity aims to deliver a comprehensive health platform targeting the growing wellness market in ����ֱ��. 

Zest Equity raises $4.3m to scale secondary shares platform 

Zest Equity, a UAE-based fintech enabling secondary share transactions, has raised $4.3 million in pre-series A funding. 

The round was led by Prosus Ventures and included participation from Morgan Stanley Inclusive and Sustainable Ventures. 

Founded in 2021 by Rawan Baddour and Zuhair Shamma, Zest Equity facilitates secondary share sales for ecosystem participants such as founders and venture capitalists. 

The company will use the capital to grow in ����ֱ�� and the UAE, hire specialized talent, and develop its technology infrastructure. Zest previously raised $3.8 million in a seed round in October 2023. 

BloomPath raises $1.3m pre-seed to enhance workflow analytics 

US-based SaaS startup BloomPath has raised $1.3 million in a pre-seed round led by RAED Ventures, with participation from Ulu Ventures, Wamda Capital, +VC, and angel investors. 

Founded in 2024 by Mohammad Kotb and Ahmed Gad, BloomPath offers AI-powered workflow tools designed to track progress, analyze patterns, and monitor team performance. 

The funding will support product development, team expansion, and customer acquisition. 

Hushday raises $550k to launch premium retail platform 

UAE-based e-commerce startup Hushday has raised $550,000 in a pre-seed round from undisclosed regional investors. 

Founded earlier this year by Jennifer Cohen Solal and Riad Djabri, Hushday offers an invitation-only platform for consumers to access premium and luxury brands’ excess inventory while preserving brand positioning and pricing. 

The company plans to launch in the UAE and expand into ����ֱ��, Qatar, and Kuwait. 

iQ Cars raises 7-figure seed round to expand automotive platform in Iraq 

Iraq-based automotive platform iQ Cars has raised a seven-figure seed round led by Euphrates Ventures. 

Founded in 2020 by Amer Salih, iQ Cars operates an online marketplace featuring more than 34,000 car listings and over 1,000 dealerships. 

The company, now registered as Iraq’s first private joint stock company, plans to expand across the country while enhancing transparency and innovation in the sector, according to a press release.