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Zest Your Equity | 05-March-2025

Zest Your Equity | 05-March-2025

Learn about the key considerations for your capital stack, MENA startups' huge month in February, and more news.

Ghalia from Zest
March 05, 2025

This week’s agenda 📜

Our latest resource ✍️
Who’s raising? 💰
M&A activity 🤝
What we’re reading 📖

Let’s dive in 👇

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Our latest resource ✍️

If you’re planning to acquire a private company, you may be asking yourself, “How will I pay for the business?”

This seemingly simple question is one of the most important decisions you’ll make as an acquirer. The structure of your financing - called your capital stack - directly impacts the financial stability, flexibility, and long-term value-creation potential of your target business. Poor structuring can lead to excessive leverage, covenant breaches, or misaligned incentives among stakeholders, which can ultimately erode returns and create additional challenges when growing your business.

Read our latest resource as we discuss the balance of risk and return between different financing sources, and break down each component to highlight what acquirers should watch out for when crafting their capital structure.

Who’s raising? 💰

🇦🇪 UAE-based fintech Flow48 has closed a $69 million Series A funding round in a mix of debt and equity.
🇦🇪 UAE-based self-storage services provider The Box has raised $12.5 million in a debt financing led by Shorooq.
🇦🇪 UAE-based SaaS provider Journify has secured $4 million in funding, led by Silicon Badia, with participation from RZM and other investors.
🇦🇪 UAE-based AI-powered content platform FanTV has raised $3 million in a Series A investment round from Mysten Labs, Cypher Capital, CoinSwitch Ventures and Illuminati Capital.
🇦🇪 UAE-based fintech, omnispay, has raised $1.5 million in a seed funding round led by Mercatus Capital Pte. Ltd., with participation from regional and international investors.
🇧🇭 Bahrain-based foodtech, Lola, has raised $1.3 million in a pre-seed funding round from Plus VC, Vision Ventures, and angel investors.

M&A activity

UK-based automotive intelligence platform Pinewood.AI has agreed to acquire Seez for $46.2 million in cash and shares. The share component is expected to grow over the following three years. Source.
German logistics company DHL eCommerce, the e-commerce logistics specialist of DHL Group, has acuired Saudi parcel logistics company AJEX for an unknown value. Source.
Egypt-based fintech Basata has increased its stake in Jordan’s MadfoatCom to 25%. Source.

What we’re reading 📖

MENA startups raised $494 million in February 2025, 371% MoM growth

The Middle East and North Africa's (MENA) startup ecosystem experienced a remarkable surge in activity during February 2025.

Homegrown delivery app Ninja is in talks for a potential fundraising round that would value the company at USD $1B

After Investing $100 Million Into New VC Firms, Here’s What I Look For: Traditional But Better, or Different & Excellent.

Screendoor has now looked at more than 1,500 venture firms raising funds, backing roughly 1.5% of them, often as their first or second largest investor.

Private Equity Deals Set for Comeback in MENA, Magnitt Says

The private equity market in the Middle East and North Africa may start positioning for a “long-term rebound” in 2025 as investors recalibrate strategies after a drop in deal flow, according to data platform Magnitt.

Convertible debt could be the right solution for MENA funding gap

In many ways, we are in an exciting era for SMEs. Accessible digital tools and platforms have enabled smaller business owners to streamline operations, reach wider audiences, and compete with their larger counterparts on a more level playing field.

Saudi consumer spending surges 35% to $4.6bn ahead of Ramadan

Consumer spending in Saudi Arabia jumped 34.7 percent to SR17.5 billion ($4.6 billion) in the week leading up to Ramadan, driven by increased food purchases and retail activity, official data showed.

Top Venture Capital Trends to Watch For in 2025

Explore the top venture capital trends shaping 2025, from AI and ClimateTech to innovative funding models. Gain insights to align with emerging opportunities!

Saudi Arabia’s economic diversification to drive robust growth in 2025: report

Saudi Arabia’s economic diversification efforts and the robust expansion of the non-oil sector, in line with its Vision 2030, are set to drive significant economic growth in 2025, according to a recent analysis.

GIP to open Qatar office in latest Middle East investment push by private equity

U.S.-based Investment firm Global Infrastructure Partners (GIP) said on Monday it would open an office in Qatar to serve as the hub for its operations in the Middle East and North Africa.