Venturesouq Launches Second Fintech Fund, Expanding MENA Investment Opportunities

Dubai, United Arab Emirates – Venturesouq, a venture capital firm based in the CCG, has officially closed its second fintech fund, aptly named Fintech Fund II. This milestone cements the company’s reputation as a leading investor within the MENA region, setting a robust foundation for the area’s burgeoning fintech ecosystem.

Strategic Partnerships Fuel Growth

Supported by esteemed limited partners, including the Jada Fund of Funds, Saudi Venture Capital Company (SVC), Saudi Bank Awwal (SAB), Mubadala Investment Company, and others, Fintech Fund II is poised to make significant investments. The fund will specifically target startup investments in fintech companies and adjacent Software as a Service (SaaS) in the MENA region, emphasizing sectors like payment infrastructure, alternative credit, digital banking, proptech, insurance, and personal financial management.

Expert Insights on Market Potential

Suneeel Gokhale, general partner of Venturesouq, stated, “Fintech Fund II demonstrates the wealth of opportunities present in this region and the effectiveness of our platform. Since the launch of our first Fintech fund in 2021, market traction has drastically increased.” He emphasized that although they are in the early stages of this journey, the foundational elements for substantial growth are firmly established.

Building on Past Success with Fund II

Fellow general partner Maan Eshgi remarked, “With Fund II, we are leveraging the groundwork laid by Fund I by forming strategic partnerships that mirror the evolution within the MENA region.” He noted that the region’s success relies heavily on nurturing consistent environments and unlocking collaborative opportunities, which accelerate the growth of startups shaping tomorrow’s market landscape.

Diverse Portfolio of Innovative Startups

Venturesouq has maintained a dynamic approach in venture capital, growing its portfolio through key areas such as fintech and climate technology. The firm has a track record of supporting high-growth startups, including:

• Tabby – A leader in the buy-now, pay-later sector.
• Huspy – An innovative digital real estate platform.
• Yassir – A prominent service application catering to Algeria, Morocco, and Tunisia.
• Salla – An empowering e-commerce platform for Saudi merchants.
• Mozn – A Saudi AI firm specializing in risk and compliance solutions.

Commitment to Innovation in Saudi Arabia

Saeed Asiri, Chief Banking Director of Innovation at Saudi Awwal Bank, noted, “This fund represents the strategic partnerships we value at SAB, one of Saudi Arabia’s leading banks, where innovation is a shared pathway between visionary founders and institutional investors. Our commitment to fostering the region’s innovation economy benefits both today’s entrepreneurs and future generations.”

Acknowledgment and Recognition in the Industry

Earlier this year, Forbes recognized Venturesouq as one of the top venture capital firms in the Middle East for 2024. This accolade highlights the growing institutional confidence in Venturesouq’s leadership within emerging markets and its all-encompassing approach to innovation investment.

Venturesouq’s Role in the Startup Ecosystem

Since its inception, Venturesouq has become a cornerstone investor in the MENA startup ecosystem. Through its first fintech fund, the company has supported over 40 startups across Saudi Arabia, Egypt, Jordan, and Pakistan. Many of these companies have subsequently attracted investments from global investors and have advanced in their respective markets.

The Future of Fintech in MENA

With a recent industry report predicting that the MENA region will be the fastest-growing market globally—projected to achieve a 35% annual growth rate until 2028, significantly outpacing the global average of 15%—Fintech Fund II stands on the shoulders of its predecessor, marking a new era of institutional trust and investment in MENA’s fintech sector.

About Venturesouq

Founded in 2017, Venturesouq focuses on early-stage tech investments throughout the CCG. Operating mainly in the UAE and Saudi Arabia, the firm has invested in over 200 companies worldwide, managing approximately $250 million. Its leadership team includes seasoned professionals like Suneel Gokhale, Maan Eshgi, and other influential figures in the venture capital landscape.

About Saudi Bank Awwal (SAB)

Saudi Bank Awwal (SAB) is one of the largest banks in Saudi Arabia, with a history spanning over 90 years. As a key player in the kingdom’s economic development and social progress, SAB excels in a variety of financial services, including corporate banking, investment services, and digital innovations. Following its merger with Alawwal Bank, SAB now operates under the regulations of the Saudi Central Bank and has robust partnerships within the financial sector.