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STV Announces its $100 Million Non-Dilutive Capital Investment Platform in Partnership with SAB Invest and the Strategic Backing of NTDP

Riyadh, April 2025 – STV, the leading growth investor in the tech sector in MENA, has announced the final close of its inaugural non-dilutive capital vehicle, the STV NICE Fund I. This milestone follows a successful commitment from SAB Invest through its Alternative Financing Fund, a CMA-licensed private fund, as well as several family offices. This initiative, supported by the National Technology Development Program (NTDP), is set to address the financing gap for tech startups in the Kingdom, offering critical Sharia-compliant non-dilutive capital to fuel growth in the rapidly expanding tech sector. The launch of the partnership was announced on 30th April 2025 with the presence of Ms Lubna Alolayan Chairperson of SAB, Abdulrahman Tarabzouni Founder of STV, Ibrahim Neyaz CEO of NTDP, and Ali Almansour Managing Director & CEO at SAB Invest, along with various stakeholders of the banking and investment industries.

The STV NICE Fund I is designed to provide a founder-friendly capital alternative for growth companies, to accelerate their business while avoiding equity dilution. A pioneering development in the region, the fund leverages the innovative Non-Dilutive Investment in Callable Equity (NICE) instrument. This unique structure enables investors to capture high-growth opportunities in the tech sector while generating regular income within a Sharia-compliant framework. The fund has already invested in several tech startups, including Morni, RedBox and Invygo. 

This effort also aligns with the Financial Sector Development Program and correlates with the Capital Market Authority's new strategy by developing innovative financing solutions through public-private partnerships. SAB Invest will enable a broader investor base to participate in this unique growth-income, shariah-compliant investment product, which opens the door to building a truly scalable and sustainable funding platform.

Ihsan Jawad, General Partner of STV, commented “This milestone marks a pivotal moment in the evolution of tech investment in the Kingdom. We are very pleased to have developed a funding instrument tailored to the needs of regional startups

Ibrahim Neyaz, the CEO of NTDP added, “Our strategic backing of Non-Dilutive initiatives will create a sustainable, scalable funding platform to meet the increasing demands of tech startups in the Kingdom. This effort aims to accelerate the growth of these companies, offering access to non-dilutive capital that will foster innovation and contribute to the diversification of the economy.”

Osama Alowedi, Chief Investment Officer of SAB Invest, commented “Our partnership with STV and the strategic backing of  NTDP marks a new era of opportunity for investors and startups alike. SAB Invest’s Alternative Financing Fund offers clients steady, Sharia-compliant income while fueling the growth of Saudi tech companies at the heart of the Kingdom’s economic transformation.”

About STV

STV is a leading venture capital firm committed to supporting and accelerating high-growth tech startups. Through innovative funding solutions such as the NICE instrument, STV focuses on empowering entrepreneurs to scale their businesses.

STV is the largest independent technology investment firm in MENA. STV backs and scales the MENA region’s most exciting and disruptive technology companies.

About SAB Invest

SAB Invest is a leading investment firm focused on creating value through strategic partnerships and innovative financing solutions. With a focus on growth, SAB Invest aims to drive sustainable investment opportunities in the Kingdom's burgeoning tech sector.

About NTDP

NTDP is a national program that contributes to developing the technology ecosystem in the Kingdom and increasing its effectiveness by driving sustainable growth using different interventions and support mechanisms complementing efforts made by other stakeholders.

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Introducing STV Lens with our new report: The MENA AI Opportunity

STV Lens is a new series of short-form publications designed to complement our STV Insights Reports, enabling us to share timely perspectives on emerging technologies in MENA and the broader VC ecosystem more frequently.

The GCC is uniquely positioned to lead in AI by focusing on the application layer, where true value and differentiation emerge. Here, local companies can leverage their understanding of regional needs, languages, and regulations to create tailored AI solutions that solve real-world problems, unlocking significant equity value and cost savings. This is the moment to harness our data assets, talent, and governance frameworks to build transformative AI products that resonate not only in the region, but globally.

Learn more about the opportunity at the app layer in the full Lens report here.

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STV NICE Investment in BuildNow: Redefining the Construction Industry in the Middle East

We are pleased to announce our latest investment in Buildnow, MENA's pioneering Build Now Pay Later platform dedicated to revolutionizing the construction industry's financial landscape. This new funding will enable the company to scale its loan book, empowering SMEs in the construction sector to access its unique BNPL solution.

Our partnership was facilitated through the Non-dilutive Investment in Callable Equity (NICE) structure, underscoring our commitment to supporting high-growth companies with founder-friendly financing solutions.

Founded in 2022 by Abdulla Sheikh, Rahat Dewan, and Hisham Al Saleh, Buildnow has swiftly emerged as a transformative force in the construction sector. By facilitating the exchange of over 125,000 tonnes of raw materials and empowering more than 800 SMEs, Buildnow addresses critical cash flow challenges that have long hindered SME growth in the industry.

The construction sector in Saudi Arabia alone witnesses approximately $42 billion in trade annually, yet SMEs often grapple with delayed payment cycles and restricted access to credit. Buildnow's platform offers a compelling solution by providing:

  • Speed: Enabling businesses to procure construction materials on credit within 24 hours, significantly accelerating project timelines.

  • Ease: Offering a fully digital process that eliminates the need for physical visits or cumbersome paperwork, streamlining operations for users.

  • Flexibility: Granting buyers access to an extensive network of suppliers with payment terms that align with their cash flow, enhancing financial agility.

Our investment in Buildnow through the NICE instrument exemplifies our dedication to providing Shariah-compliant, non-dilutive funding options that empower entrepreneurs to scale their businesses without relinquishing equity. The NICE structure is designed to align with the unique needs of high-growth startups, offering a revenue-linked repayment model that supports sustainable expansion.

Buildnow's mission is to streamline the construction supply chain and bolster SME growth across the region. This investment not only reflects our confidence in Buildnow's innovative approach but also reinforces our broader commitment to fostering technological advancement and economic development in the MENA region.

Congratulations to the entire Buildnow team on this significant milestone. We look forward to witnessing your continued success and the positive impact you will undoubtedly have on the construction industry.

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STV Participates in Tabby’s Pre-IPO Round

Just over four years ago, we made our first investment in Tabby, believing in its potential to transform how people shop and manage their money in the Middle East. Since then, we’ve invested in the company’s Series A, B, C, and D rounds, and have supported them through the NICE instrument. Today, we’re proud to back Tabby once again as they raise $160 million in Series E Pre-IPO funding at a $3.3 billion valuation, making it the most valuable fintech company in MENA.

What started as a simple buy now, pay later (BNPL) solution has evolved into something far bigger. Tabby has redefined financial freedom for millions, introducing products that extend beyond checkout. The recently launched Tabby Card is already one of the region’s most popular financial products, allowing consumers to shop anywhere and pay flexibly. The acquisition of Tweeq, a Saudi digital wallet, signals Tabby’s expansion into digital spending accounts and money management—critical steps in becoming a full-fledged financial services platform.

At its core, Tabby continues to do what it does best: helping consumers take control of their finances while driving business growth for over 40,000 merchants, including Amazon, SHEIN, IKEA, and Adidas. With annualized transaction volumes now surpassing $10 billion, Tabby’s scale and impact are undeniable.

With its home market of Saudi Arabia undergoing a rapid shift toward a cashless economy, Tabby is uniquely positioned to accelerate this transition. The company’s products align with the Kingdom’s Vision 2030 objectives, providing innovative payment solutions that empower consumers and businesses alike. By offering longer-term payment plans, spending accounts, and financial management tools, Tabby is shaping the future of finance in the region.

This latest investment isn’t just about growth—it’s about cementing Tabby’s place as the region’s fintech leader. With a strong focus on profitability, operational excellence, and product innovation, Tabby is gearing up for its biggest milestone yet: an IPO. The Series E round provides the capital and momentum to take that next big step.

Congratulations to Hosam and the entire Tabby team—we can’t wait to see what’s next!

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Tripling Down on Calo, the Middle East’s Largest Meal Subscription Foodtech Startup

We are thrilled to announce our participation in Calo’s $25 million Series B round, alongside Nuwa Capital and Khwarizmi Ventures. As one of the largest investors, we continue to support Calo, the Middle East’s leading meal subscription foodtech startup, on its journey to revolutionize healthy eating.

Calo’s journey has been remarkable. Founded in late 2019 by Ahmed Alrawi, with Moayed Almoayed joining as co-founder, the company has delivered over 10 million meals, achieved nine-figure annualized revenue, and maintained 100% CAGR from 2020 to 2024. Operating across Saudi Arabia, the UAE, Bahrain, Qatar, and Kuwait, Calo’s personalized meal plans make healthy eating convenient and accessible, catering to a wide range of dietary needs.

This latest funding will empower Calo to solidify its leadership in the GCC, expand AI-driven personalization, launch innovative new products, and expand into retail and global markets. With its first acquisition planned for early 2025 and key strategic hires on the horizon, Calo is preparing for an accelerated growth phase leading up to an IPO in Saudi Arabia.

Our investment in Calo stems from our confidence in Ahmed and his customer-first approach, combined with operational excellence. By leveraging a tech-driven, vertically integrated model, Calo has achieved rapid growth and healthy margins while addressing diverse lifestyles across the region.

With the $500 billion quick-service restaurant market continuing to expand, Calo’s ambition to rank among the top 10 global food brands is well within reach. We’re proud to support Ahmed and the entire Calo team as they reshape the future of healthy eating on a global scale. 

Busy? Try Calo here

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STV NICE Investment in Invygo: Accelerating the Future of Mobility in the Middle East

STV’s has invested in invygo, the Middle East’s leading car subscription platform, through its novel Non-dilutive Invesment in Callable Equity (NICE) structure. The investment will support invygo’s innovative “Subscribe to Own” model and help the company reach profitability by the end of 2024, as it continues to reshape the region’s automotive market.

We are happy to announce that STV’s NICE Fund I has invested in invygo, the Middle East’s leading car subscription platform, as one of its early deals. This investment is part of invygo’s Series A extension round, which also saw participation from existing investors including Al Rajhi Partners, Arab Bank Ventures, SPV, MEVP, and C5.

Since its inception in 2019, invygo has been transforming the traditional car ownership model by offering accessible and flexible car subscription services. The company has surpassed a $100 million revenue run-rate, a milestone largely driven by the success of its innovative “Subscribe to Own” (STO) model in Saudi Arabia. With this strong growth trajectory, making Saudi Arabia its biggest market, invygo is on track to reach profitability by the end of 2024.

The automotive market in Saudi Arabia is experiencing significant growth, fueled by a youthful population with evolving preferences. Over 70% of the population is under the age of 35, and there’s a growing demand for flexible, subscription-based services that offer convenience and affordability.

invygo’s STO offering provides users with a seamless path to vehicle ownership without the challenges of traditional financing or supply chain constraints. By focusing on strong unit economics and maximizing customer lifetime value, invygo is redefining how people access cars – making mobility as simple as a subscription.

Eslam Hussein, co-founder and CEO of invygo, stated, “We are excited to partner with STV and greatly appreciate the support from the NICE Fund. This non-dilutive, equity-based funding structure not only allows us to scale efficiently while preserving ownership, but it also brings invaluable strategic expertise to our mission.”

As invygo continues to innovate and expand its offerings, we are proud to support their mission to redefine mobility in the Middle East. By harnessing data to optimize vehicle utilization and pricing, invygo has created a scalable model that delivers real value to both customers and partners. We look forward to working closely with the team as they drive toward profitability and reshape the future of mobility in the region.

This 5-year NICE investment, which is based on a revenue-share structure, is one of the first deals out of STV’s NICE Fund I and supports invygo in scaling towards profitability. Due to the light-touch nature of NICE, which does not require any amendments to a company’s shareholders agreement or valuation discussions, the deal was completed in under 11 weeks and was highly time- and cost-effective.

For more information about invygo and their services, visit www.invygo.com.

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Tabby’s Acquisition of Tweeq: A Leap Forward for Fintech in Saudi Arabia

The acquisition of Tweeq by Tabby marks a new era for digital finance in Saudi Arabia, with Tabby well-positioned to lead.

At STV, our mission has always been to back bold entrepreneurs who are redefining industries and creating value at scale. When we invested in Tabby at the Series A stage and in Tweeq during its Seed round, we saw in these companies the potential to transform the financial landscape in Saudi Arabia and the broader MENA region. Today, with Tabby’s acquisition of Tweeq, we are proud to see that vision come to life and to witness the impact of our investments on the region’s Fintech ecosystem.

Tabby and Tweeq have both demonstrated extraordinary progress since our initial investments. 

Tabby has evolved into the MENA region’s leading shopping and financial services app, empowering over 14 million users to take control of their spending, earn rewards, and save. Partnering with more than 40,000 global and local brands —including bluechip names like Amazon, IKEA, and Samsung— Tabby has redefined how consumers engage with their finances.

Tweeq, founded in 2020, has quickly established itself as a pioneer in the Saudi Fintech space. As one of the first electronic money institutions licensed by the Saudi Central Bank (SAMA), Tweeq offers a mobile-first spending account that serves as a modern alternative to traditional banking, contributing to the growth of a cashless, digital-first economy.

The acquisition of Tweeq by Tabby is a strategic milestone not just for the companies involved but for the entire Saudi Fintech ecosystem. By integrating Tweeq’s digital wallet and money management tools into its platform, Tabby is set to offer a more holistic suite of financial products beyond Buy Now Pay Later. This move strengthens Tabby’s value proposition, allowing it to better serve its growing customer base and lead the next phase of Fintech innovation in the region, while advancing Saudi Arabia’s vision of becoming a global leader in digital finance.

At STV, we remain committed to supporting visionary founders who are shaping the future. We look forward to the continued success of Tabby and Tweeq as they embark on this next chapter together.

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Investing in Abyan: Empowering Retail Investors to Shape their Financial Goals

We are co-leading Abyan Capital's $18 million Series A funding round. As Saudi Arabia's leading robo-advisory and savings app, Abyan is revolutionizing the investment landscape for both retail and accredited investors with the approval of the Saudi Capital Market Authority.

In rapidly evolving local capital markets, a significant portion of savers, lacking robust investment expertise, need access to appropriate and streamlined investment and savings solutions. While traditional wealth management services cater to high-net-worth individuals and corporate clients, retail investors have been left behind, needing more tools and seamless access to crucial market segments like money markets, Sukuk, or global Sharia-compliant equities.

Abyan has successfully launched Saudi Arabia's leading mobile-first, robo-advisory application, offering an effortless onboarding process, personalized portfolio allocation, and a seamless deposit and withdrawal experience. Since its launch in August 2022, Abyan has introduced various features and updates to enhance its platform.

The asset management and brokerage market in Saudi Arabia, currently managing SAR 300 billion, is marred by limited accessibility for retail investors and the provision of substandard and expensive products. The robo-advisory model has demonstrated its effectiveness in enabling a broader audience of savers and investors to access suitable portfolios, thereby increasing the penetration of passive investment strategies.

What sets Abyan apart is not only the laser focus on user experience and deep understanding of financial markets but also the team’s exceptional execution capabilities and ability to rapidly innovate and adapt to evolving user demands. Launching the first robo-advisor in the KSA market back in August 2022, Abyan, in less than two years, facilitated investment for 100,000 portfolios, managing over SAR 1.2 billion in deposits across various asset classes.

Leading the charge in the new era of savings and wealth advisory in Saudi Arabia, we are eagerly partnering with Abyan’s Founders, Abdullah Aljeraiwi and Saleh Alaqeel, on their mission to open up investment opportunities for all. We are excited to co-lead this funding round alongside Wa'ed Ventures, the VC arm of Saudi Aramco, with the participation of RZM Investment, which led the company’s seed investment round.

For those eager to explore the future of wealth advisory, download the app here. If you are a talented individual looking to make an impact in the fintech sector, consider joining Abyan's dynamic team apply here.

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STV Doubles Down on Salla: Accelerating E-Commerce Innovation in MENA

Salla, the leading SaaS e-commerce enabler in Saudi Arabia, has raised $130 million in a Pre-IPO funding round co-led by Investcorp and Sanabil, and with the participation of STV as the largest investor. This investment represents a milestone in Salla's journey and a testament to the platform's monumental impact on the regional e-commerce ecosystem.

Since our initial investment in Salla in 2020, the company has developed a comprehensive SaaS solution integrated with over 400 applications, empowering merchants to seamlessly build their e-commerce websites, manage inventories, process payments, and fulfill orders, all within a few hours.

Today, the company supports 80,000 active merchants generate over $7 billion in e-commerce sales. This growth not only underscores the escalating demand for e-commerce solutions in the region, but also highlights Salla's pivotal role in the digital economy: by providing a robust, scalable solution, Salla facilitates the transition of traditional businesses to the digital world and supports new entrepreneurs in launching their ventures. 

Our decision to double down on Salla reflects our confidence in Nawaf Hariri and his team of over 160 developers focused on technology and product development to continue innovating and scaling, as we see a clear path for the company to become a flagship tech brand on the public market.

We are grateful to be part of Salla’s remarkable growth journey in enabling e-commerce landscape in MENA – congrats team, onwards and upwards!

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The New Non-Dilutive Capital: Introducing NICE, A Founder-Friendly Alternative to Traditional Venture Debt

Non-dilutive Investment in Callable Equity (“NICE”) is a first-of-its-kind instrument in the MENA region that provides an attractive alternative to traditional venture debt – Tabby, one of our portfolio companies and MENA’s latest unicorn, was the first company to obtain this new non-dilutive financing from STV, with Hosam Arab describing the structure as “an efficient cost of capital versus equity”.

Across the world, the high-interest-rate environment and compressed equity valuation multiples are making the funding landscape of late-stage startups particularly challenging. As a result, founders are currently losing precious time and energy navigating their equity fundraising, even those that are successful are most likely to see high dilution.

You might say: “but what about venture debt?” And you would be right, there has increasingly been a shift towards venture debt in the region, even though the private debt practice in the region is still in its infancy – roughly $200m was deployed in venture debt in 2022, compared to $2.6b in equity financing (according to MAGNiTT).

However, as more of our companies have gone through the process of raising traditional venture debt and we speak to other investors and venture debt-funded startups, the shortfalls of the instrument when it comes to high-growth startups become increasingly apparent.


The clear shortfalls of traditional venture debt

1: Full downside risk: Through an asset and share pledge that venture debt providers often require, founders risk losing control of their entire company in the case of any covenant breach.

2. Fixed repayments: Venture debt has to be repaid on a fixed schedule, while future cash flows are inherently variable. So, taking on venture debt to fund sales and marketing may result in an asset-liability mismatch, which amplifies the downside risk for the startup.

3. Stringent covenants: Perhaps most critically, venture debt comes with a host of covenants that you need to adhere to, including financial and non-financial KPIs and ratios, which can put significant guard rails on the company’s ability to grow; this is the last thing that you want as founder.

Based on these factors, combined with the notoriously vague pricing and fee structure of venture debt, we think that there should be a more founder-friendly approach to non-dilutive financing. As venture capital investors at heart, we understand the struggles that come with building a lasting business, and are much more comfortable with the risk profile associated with such ventures. We fundamentally believe that managing risk through covenants, as venture debt does, is not suitable for tech startups that are inherently asset-light and need to stay agile. Through covenants, providers of venture debt have very limited recourse against the company, as the primary driver of any startup is its team and ability to scale, rather than monetizable assets.

This new instrument, dubbed NICE (no pun intended), looks to address this.


Introducing “NICE”: Non-Dilutive Investment in Callable Equity

1. No downside risk: NICE is based on callable equity, which gives founders the option but not the obligation to buy back this equity in installments over the maturity period – as such, it is a shariah-compliant structure.

2. Variable repayments: The buybacks are revenue-linked, which means that our returns are tied to your future cash flows – we win if you perform well, while we both see lower returns in case performance is not as expected. Moreover, in case you do exceptionally well, we cap the returns that we see to further align interests.

3. No covenants: As an equity-based instrument, it does not come with any covenants, which further alleviates the burden on startups. You are free to invest the capital in the best way you see fit to grow your business, which provides a big boost to your manoeuvrability.


Example NICE cash flows from a company’s perspective

To illustrate how NICE works, the chart above shows the variable repayments in the form of equity buybacks. In this example, a VC-backed company is doing $3.0m in revenues, with $2.0m in revenues being booked in the last 6 months alone, showcasing strong historical and projected growth. They raised NICE funding of $1.0m to support their revenue growth. The company buys back this investment (i.e. the shares they sold to the investor) in 6 tranches over the next 3 years at a revenue share of 7% of the corresponding period. The resulting return to the investor is 1.6x CoC, while the company’s revenue grew 2.7x over the same 3-year period.

In short, NICE is a more founder-friendly form of non-dilutive financing, which better suits the needs of high-growth startups (see table below comparison with traditional venture debt).

Comparing NICE to traditional venture debt

Tabby, one of STV’s portfolio companies and the latest unicorn in the MENA region, was the first company to receive such non-dilutive financing from STV. Commenting on NICE, Hosam Arab, CEO and co-founder of Tabby, mentioned, “This non-dilutive instrument unlocked an innovative form of financing to support the growth of the business. The instrument offered an efficient cost of capital versus equity and with no recourse or restrictive covenants that we would normally expect with venture or traditional debt instruments”

Thus far, 3 companies have raised a total of $26m in NICE funding – in addition to our funding of Tabby, Difc-based Tenami Capital provided NICE funding to GoldenScent, an ecommerce company and to YouGotAGift, the eGiftcard marketplace.

While the movement is still in its early stages, we are grateful to already see strong interest in this instrument with promising companies in the pipeline. This is truly meant to be a movement that is open for anyone to join. We look to collaborate with exciting founders and investors with the overall goal of increasing the share of founder friendly, non-dilutive financing for companies in the region.

If your startup is generating $3m+ in revenue and you are looking for new funds to fuel future growth then we would love to help, please reach out to us, we’d love to chat!

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Tabby: MENA’s Newest Unicorn

Tabby, the leading Buy Now Pay Later (BNPL) platform in MENA, has raised a $200m Series D round, making it a unicorn, crossing a milestone ahead of its planned IPO on the Saudi Stock Exchange.

A few weeks after its announcement to relocate its headquarters to Riyadh, Tabby successfully closed a $200 million Series D led by Wellington Management, with the participation of STV, Mubadala, Arbor, PayPal, and Bluepool, making the company MENA’s first fintech unicorn, and STV’s third unicorn. Achieving unicorn status is not only a validation of Tabby’s robust business model but a recognition of its substantial impact in reshaping the payment landscape in the MENA region.

Since its Series C round last year, Tabby has shown spectacular momentum, consolidating its market leader status in the Middle East. Today, the company enables over 10 million users mainly in Saudi Arabia and the rest of the GCC to pay in installments from over 30,000 merchants including global and regional brands such as Amazon, Namshi, SHEIN, H&M, Adidas, IKEA, Samsung, Noon, VogaCloset, and Flynas. The company generates 80% of its volume from the Saudi market. Launched in 2020, it joined the SAMA Sandbox as one of the first BNPL providers the same year, and obtained the full license a few months ago.

This round marks a significant milestone ahead of Tabby’s anticipated IPO on Tadawul: Wellington Management has a track-record investing in the global BNPL space, having notably backed Affirm in the USA (publicly listed) and Klarna in Europe. Today, they are supporting the creation of a new FinTech champion in the region, which aligns with the Kingdom’s Vision 2030 to become the financial hub of the region while attracting FDI.

At STV, our initial thesis still plays out: MENA remains one of the fastest-growing markets for BNPL services, on the back of rapid contactless payments’ adoption, e-commerce growth and lack of access to credit, representing a $95bn opportunity that still remains underpenetrated. We have had conviction in Tabby’s potential and ability to drive adoption of flexible payments for consumers across MENA since day one, having backed the company in its Series A, Series B, and Series C, having become its largest shareholder, and having worked alongside them in unlocking key partnerships in Saudi Arabia. Hosam and the Tabby team went above and beyond, successively rolling out an array of products including split-in-4, the merchant directory, a cashback offering, and more recently the Tabby card.

As we reflect on Tabby’s remarkable trajectory, we recognize the company's ability to seize new opportunities going forward by utilizing its large scale and superior market insights. Congrats Hosam and team!

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Partnering with Google: Enabling AI, Cloud, and Digital Growth for Tech Ventures and Launching a Regional AI-first Accelerator for STV Ventures

We are pleased to announce our strategic and first of its kind partnership with Google, which aims to enable AI, cloud, and digital growth for tech ventures in the region, as well as the launch of a regional AI-first accelerator for STV ventures. 

We witnessed firsthand the amount of resources startups allocate to the products and services of global technology companies like Google. We want to take this further and deeper. This partnership with Google, especially around AI, builds on our capabilities of empowering the region’s tech ecosystem.

This first of its kind strategic partnership will include capacity building and hands-on training for tech startups on Google Ads and Cloud products such as Vertex AI, Bard, Big Query, Search. Google and STV will also launch an AI-first accelerator for tech startups across the Middle East and North Africa that aims to empower these companies to make use of AI-powered Google products. This comes at a time when technology startups around the globe are shifting gears toward cost efficiency and sustainable growth in response to the evolving funding landscape.

This announcement affirms our and Google’s commitment to supporting tech startups in the Middle East and North Africa region by giving access to AI-first tools and solutions.

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Partnering with EY: Enabling Our Portfolio Companies to Navigate the IPO Process

We are pleased to announce our strategic partnership with EY aiming to provide IPO advisory services to our portfolio companies that are approaching the IPO stage and boost IPO listings for tech companies in the Kingdom.

The technology sector in MENA has progressed rapidly in the past 5 years, and we’re seeing more companies eyeing the IPO milestone. However, the unique economic and legal structures of tech startups present a gray area for these companies on the path forward. As our portfolio companies grow and some have already raised pre-IPO rounds, IPO readiness is becoming more crucial in preparing these companies for a successful listing in public markets. With the aim of accelerating such development by enabling companies to be IPO-ready, we’re partnering with EY, the global advisory firm and the market leader in IPO readiness locally and internationally, to work together to guide our portfolio companies throughout the IPO process. 

Utilizing EY's extensive experience on IPO preparation and execution that includes covering mandates both regionally and internationally, our founders can maximize their value potential in the public markets. Our partnership will guide our portfolio through the complicated IPO process and enable them to receive the necessary access, coverage, and efficient support to navigate the complex IPO process.

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Launching STV Total Growth Platform with $150M+ in Initial Commitments to Accelerate Regional Technology Growth

We announced during the LEAP 23 Conference in Riyadh the launch of the STV Total Growth platform, anchored by our partners at the National Technology Development Program (NTDP). With $150m+ in initial commitments and growing, the platform aims to accelerate the growth of technology companies in the region through both equity and debt.

Looking back at our market a few years ago, it was clear to see a massive gap emerging. There was an immense demand for technology companies, locally, yet a low supply when compared to the rest of the world. Especially when looking at the production of large tech companies. A massive transformation was already happening in the Kingdom. A grand vision was being put in place, and execution power was set in motion, all thanks to great leadership that saw the future and did not settle to building it, but even go as far as leapfrogging it. 

In 2017, we saw this opportunity and wanted to play our part in supporting founders building the next gen economic engines of the region and we started STV. Our partners at stc believed in this vision and made a huge bet on us, and we entered the market with $500M for our first fund. An amount that was 12x the total capital deployed in the Kingdom that year. Today, our 30 portfolio companies have raised more than $1.5bn, attracted $600m in foreign direct investments, generated $28bn in merchandise value, and created more than 10k jobs. 

We projected in our recent  From Startup To IPO: Unlocking A $100b+ Opportunity In MENA report that the region is poised to output 45 unicorns by 2030, presenting a $100b value opportunity and predicting the emergence of the next tech alpha, from MENA to the world. However, for the region to realize this potential, we estimated that $25b in growth-stage funding is needed in the next 5 years. And with Saudi becoming the gravitational center of the region, attracting the most promising tech ventures, we believe that we have a unique opportunity to bridge this gap.

Having invested in a portfolio of fast-growing companies, and being among MENA’s most active growth-stage investors, we recognized the need for both equity and non-dilutive debt funding for tech companies, particularly in the growth stage. With this new platform, we aim to stimulate regional tech ventures, by offering founders access to a suite of funding solutions that serve their needs throughout their growth journeys.

STV Total Growth will use a comprehensive suite of funding instruments to fuel growth stage technology companies in the region. Aside from equity in the form of venture capital, a newly developed product named Tanami will act as a Sharia-compliant non-dilutive venture debt instrument. The new Tanami instrument is expected to play a key role in the development of the tech ecosystem in the region and finance many of the rapidly growing companies within the next three years.

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Doubling-Down on Floward: MENA’s Largest Online Flowers and Gifting Destination.

We are co-leading Floward’s $156 million USD (585 million SAR) Pre-IPO Series C round. With presence across the GCC, Jordan, Egypt, and the UK, Floward is the region’s largest flowers and gifts eCommerce solution, delivering a unique gifting experience to their customers.

When we first invested in Floward in 2021, we were betting on two things: the fundamental gifting culture in the MENA region, and the company’s unique capability and position to capitalize on it. Since then, we’ve witnessed Floward’s platform grow 7x to become the single largest importer of flowers in this $3bn market, delivering more than 50 million flower stems in 2022. 

With a product category that includes gifts from 400+ brands and partners across 9 countries, Floward has become the go-to gifting destination for their customers. Their recent acquisition of Mubkhar, a widely loved fragrance brand, is the first step in the company’s commitment to deepen their roots in the wider $10bn gifting market. 

Beyond convenience and fast delivery, Floward has created a unique gifting experience for their customers, from the gifter’s selection from a vast and curated array of products, to the giftee’s anticipation when they see a notification that a loving someone has sent them a gift, to the awaited unboxing. This is only possible with the operational excellence and unparalleled technological and logistical infrastructure that Abdulaziz Alloughani and Mohammed Alarafi, co-founders of Floward, and their team have built. They are always coming up with new ideas to enhance the gifting experience and developing expertise along every part of the chain. As we’ve heard many times from many people on the Floward team, they are “in the business of delivering emotions.”

We are proud to lead the company’s Pre-IPO Series C round, along with Aljazira Capital and Rainwater Partners, as the company further fuels its M&A strategy to expand into other gifting verticals and prepares for a public listing, driven by the newly established IPO Board Committee. We’re excited to double down on Abdulaziz, Mohammed, and team as they solidify their leading position as the region’s gifting champion, and to support them in delivering the “Gift of Giving” as a public company.

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Quadrupling Down on Tabby: Democratizing Fintech BNPL Across MENA

We are co-leading with Sequoia Capital a $58m Series C round in tabby, the leading Buy Now Pay Later (BNPL) provider in MENA. Tabby enables over 10,000 merchants to offer 4-month installment plans and cashback to both online and in-store customers, at zero cost for the buyer.

Backers of tabby since their Series A round in 2020, we have always been confident in the company’s ability to drive adoption of flexible payments for consumers across the MENA region. Hosam and the Tabby team have proven us right by enabling more than 3 million active customers mainly in Saudi Arabia and the UAE to pay in installments from over 10,000 merchants including global and regional brands such as SHEIN, H&M, Adidas, IKEA, Noon, and VogaCloset.

Since our latest investment a year ago, the company has shown spectacular momentum, with revenue growing 5x, consolidating its market leader status in the Middle East. Beyond the initial split-in-4 service, Tabby has so far successively rolled out an array of products including the merchant directory, a cashback offering, and more recently the Tabby card. It has also recently expanded into Kuwait.

The MENA region is one of the fastest-growing markets for BNPL services, on the back of contactless payments’ adoption, e-commerce growth and lack of access to credit, representing a $95bn opportunity that still remains underpenetrated.

We are excited to reiterate our conviction in Tabby by co-leading a Series C with Sequoia Capital, as they continue to spearhead this sector and build new frictionless consumer-focused payment experiences, deepening our partnership with a remarkable team on their growth journey across the region.

The round has been joined by a blend of new and existing investors including notably PayPal Ventures, Mubadala, Arbor Ventures, and Endeavor Catalyst.

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Investing in Manafa: Enabling SME Financing and Unlocking New Asset Classes to Retail and Institutional Investors

We are co-leading a $28m series A investment round in Manafa, Saudi Arabia’s leading debt and equity crowdfunding company. Manafa offers a wide range of financial products permitted by the Saudi Central Bank and the Saudi Capital Market Authority, to finance SMEs.

As active venture capital investors, we have witnessed firsthand the inadequacy of financing solutions for SMEs by traditional banks and other financiers. On the other side, retail and institutional investors lack the accessibility to large and critical asset classes like Sukuk, trading papers and SME equities in an efficient manner. The high cost structures and small ticket size of SME financing contributed to financiers hesitation to serve the sector in the Kingdom, leading to a huge funding gap of $80 billion, according to estimates by the the General Authority of Small and Medium Enterprises.

The debt-to-revenue ratio for SME’s in the Kingdom is about one-third of G20 average. The lack of credit significantly constrains the SMEs ability to grow and contribute to the economic targets set by Vision 2030.

Source: IFC and World Bank methodology, Orbis database, STV Analysis

Manafa built a technology platform that matches financing demand with financing supply. Indeed, on one side the platform serves SMEs and larger companies looking to access credit and equity financing. On the other side, it serves retail and institutional investors willing to deploy capital into fast-growing Saudi SMEs. Manafa's technology offers a fully integrated and digital experience that allows SMEs to obtain credit in record time and investors to access high-yield opportunities through a click. In 2018, Manafa was the first platform to launch equity financing products for Saudi SMEs. It then launched debt financing in 2020. Since then, the company has launched a number of investment products including long-term financing, investment robo-advisory and investment fund's distribution. To date, Manafa has cumulatively facilitated over SAR 1.5b in financing to over 180 companies in the Kingdom. 

Behind Manafa's continuous success is a team of talents in finance, investments and advisory led by Abdulaziz Al-Adwani and Eng. Amr Murad. Such a team has consistently proved an exceptional ability to anticipate the market needs and to address them by developing tailored products serving multiple sectors under various legislative frameworks.

Manafa is the leading Saudi fintech and we look forward to supporting the company and its founder Abdulaziz in their mission to unlock the financing potential for Saudi SMEs and other players. We are also excited to co-lead this round alongside Wa'ed Venture, the VC arm of Saudi Aramco.


In case you're a company owner/executive and want to access different equity and debt financing options digitally and in record time, apply here. If you are a young talent and would like to join a leading team in the fintech sector, apply here.

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Doubling Down on Calo: Providing Healthy Options In New Markets

We are co-leading a $13m pre-series A investment round in Calo, the direct-to-consumer foodtech company offering personalized meal subscriptions. The investment will further strengthen Calo’s GCC market presence, serve new categories, and explore opportunities for regional and international expansion. 

A year ago, we announced an exciting investment in Calo. We were not only inspired by the founders’ vision and focus on customer experience, but also by their operational and commercial expertise. Calo started with one mission: making healthy easy for busy people. With growing demand for more convenience and healthier alternatives, there was an underserved market need. 

At the time, the company was only operational in Bahrain and had just launched in its second market, Riyadh, with a beta version of their product. Today, they are officially launched in 6 cities across the GCC, having served tens of thousands of customers. The company continues to quadruple their revenues year-over-year while maintaining healthy margins, a sentiment to their unique offering and vertically integrated operations. Calo also continues to improve its offering of personalized daily meals with a rotating menu of over 500 options, catered to different fitness or lifestyle goals, including vegetarian, low carb, and balanced plans. 

Our investment today reiterates our conviction in Calo and the potential in the foodtech space. We are excited to double down on our partnership with Ahmad and Moayed on their mission to make healthy easy. 

Make sure you try them out -  here.

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Deepening our Partnership: stc Commits Additional $300m to STV to Accelerate Growth of Digital Champions in MENA

We are pleased to announce that Saudi Telecom Company (stc), the largest telecom operator in MENA, has committed an additional $300m on top of its original $500m to STV, the largest independent technology investment firm in the Middle East and North Africa (MENA) during the sixth Future Investment Initiative (FII).

The investment will further fuel our mission of backing and scaling the region's digital champions. STV recently projected that MENA is poised to create 45 unicorns by 2030, presenting a $100b value opportunity to be unlocked through local IPOs [read more]. We believe that our first fund will capture a significant part of this accelerating unicorn creation on the back of its investment in champions across sectors that are growing rapidly. 

Since the launch of STV’s first fund in 2018, we invested in a portfolio of technology companies across many sectors in the Middle East and North Africa, with a core focus on whitespaces with a gap between digital supply and demand in traditionally large industries such as logistics, e-commerce, and fintech. In order to double down on this opportunity and support our existing portfolio startups, our team has grown to 20+ professionals from a variety of backgrounds, including technology, investments, and operations. 

With venture capital deployment in MENA significantly increasing in recent years, Saudi Arabia is becoming the fastest-growing large VC market in the region with its venture capital market growing 244% YoY to $584m in H1 2022. With Vision 2030 programs fostering digitization and innovation, a robust macroeconomic environment, alongside a significant influx of international institutional capital, the pace of value creation in the Kingdom is only set to accelerate over the coming years.

In 2021, STV drove almost 60% of VC deployment in Saudi Arabia and its portfolio companies created thousands of direct jobs and close to 3 million gig jobs, on top of becoming sector winners that expanded across the region and internationally. Through this additional commitment, STV is cementing its position as the most active growth investor in the region and amplifying the region’s digitalization and innovation, together with stc.

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Partnering with Meta: Enabling our Portfolio Companies on their Scale-up Journeys and Nurturing the Tech Ecosystem in KSA and MENA

We are pleased to announce our partnership with Meta, that aims to nurture the tech ecosystem in the Kingdom of Saudi Arabia and the MENA region, through technical capability building and the enablement of our portfolio companies.

As active technology investors in Saudi Arabia and the region, we’ve seen how crucial online marketing is for scaling the new wave of businesses and digital champions. The Middle East has one of the highest digital consumption rates globally, which is reflected in the substantial allocation of venture capital raised towards these channels. The importance of social platforms like Meta’s for customer engagement and brand management led to us to explore various partnerships where we can support our portfolio companies to increase their ROI and build stronger capabilities on Meta's platforms.

Our partnership with Meta is designed to build deep technical capabilities within our portfolio companies and entails various strategic and financial incentives provided by Meta that will serve STV's objectives towards its portfolio and the broader ecosystem.

At STV, we believe that our most valuable assets are the deep partnerships we form with our founders and partners to transform the region through technology. This partnership is a further commitment, beyond capital, to enable our companies on their journeys into becoming regional champions and beyond.

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