Zest Your Equity | 19-February-2025

This week’s agenda 📜

• Zest terms and concepts ✍️

• Who’s raising? 💰

• M&A activity 🤝

• What we’re reading 📖

Let’s dive in 👇

Zest’s terms and concepts ✍️

Capital Call: A request made by GPs to LPs for a portion of their committed capital to fund new deals or expenses.

Capital stack: The mix of financing sources used to acquire or invest in an asset (for example, a private company). A sponsor’s capital stack is typically comprised of senior debt, junior debt (or mezzanine financing), seller contribution (for example, a seller note or deferred compensation agreement), and sponsor or investor equity. The exact balance of the financing sources determines the risk and return profile of the transaction and can impact the performance and outcome of the investment.

Syndication: When a sponsor (private equity firm, venture capital firm, emerging manager, angel investor, or other) invites other investors or firms to co-invest in a deal, spreading risk and allowing larger transactions. Typically, one firm leads the deal, handling negotiations and structuring, while co-investors follow the lead’s diligence. Syndication provides diversified exposure for all parties and expands the capital base.

Who’s raising? 💰

• 🇸🇦 Saudi Arabia-based fintech Tabby has raised $160 million in a Series E financing round at a $3.3 billion valuation, cementing the fintech as the most valuable fintech in the MENA region - a monumental milestone for the Tabby team and the fintech ecosystem.

• 🇦🇪 UAE-HQ Insurtech startup AppliedAI has raised $55 million in a Series A funding round at a pre-investment valuation of $300 million.

• 🇸🇦 Saudi Arabia-based contech BRKZ has completed its Series A extension at $17 million, including $8 million raised in March last year and $1 million in venture debt.

• 🇸🇦 Saudi Arabia-based contech Buildnow has closed a $9.7 million funding round, led by STV and Arbah Capital, with additional funding from a mix of debt financing, reinforcing the company’s expansion plans in the market.

• 🇪🇬 Egypt-born and Saudi Arabia-HQ social e-commerce platform Taager has completed a $6.75 million pre-Series B funding round, led by Africa-focused tech growth fund Norrsken22.

• 🇸🇦 Saudi Arabia-based fintech RasMal has closed a $4.8 million pre-Series A investment round led by Syndicate Element Holding Group (SHG).

• 🇪🇬 Egypt-based B2B SaaS startup Qme has raised $3 million in a seed funding round led by AHOY, along with a group of angel investors from the GCC.

• 🇸🇦 Saudi Arabia-based logistics startup PIESHIP has closed its seed funding round of $2.1 million, led by Nama Ventures, with participation from SEEDRA Ventures and angel investors.

• 🇸🇦 Saudi Arabia-based LAHINT e-services platform has closed a $1 million pre-seed funding round from undisclosed investors.

M&A activity

• 🇸🇦 Saudi PIF acquires 30% stake in Masdar, finalizes $1.5 billion SEDRA deals. Source.

• 🇸🇦 Saudi Arabia-based social media platform Mush Social has acquired Pubbles, a Saudi social media app. Source.

• 🇸🇦 Saudi Arabia-based SaaS provider Salla has entered into an agreement to acquire Sweply, an innovative Saudi digital advertising platform. Source.

• 🇦🇪 Dubai-based cosmetics brand Huda Beauty has announced the sale of its fragrance line Kayali to global growth equity firm General Atlantic, according to a statement released Monday. Source.

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