Zest Your Equity | 27-November-2024

This week’s agenda 📜

• Key terms and concepts ✍️

• Who’s raising? 💰

• M&A activity 📜

• What we’re reading 📖

Let’s dive in 👇

Zest’s key terms and concepts ✍️

Dry Powder:

Capital that a private equity or venture capital firm has raised from their limited partners but has not yet deployed into investment opportunities. The amount of dry powder firms have can vary based on market conditions and the availability of attractive investment opportunities. Dry powder directly impacts the amounts of funds available for investment and the competitive environment for companies looking to raise capital. 

Dilution:

The decrease in ownership percentage that an entrepreneur or investor has in a company as a result of issuing new shares to investors. While the number of shares existing investors own stays the same, their relative ownership percentage decreases as a company raises additional capital. Most shareholders get diluted over time as a company grows and raises more capital. However, in some transaction documents, anti-dilution mechanisms exist to benefit select investors by maintaining their relative ownership in the company. 

TAM vs. SAM vs. SOM:

Measuring your company’s economic market opportunity is critical to forecasting your growth potential, future market share, and financial performance. There are three core ways that private companies can measure their economic market opportunity: total addressable market (TAM), serviceable addressable market (SAM), and serviceable obtainable market (SOM). The value of each of these figures will be represented in your currency because this is a calculation of your potential revenue opportunity given different market segments. 

Total addressable market: The total market demand for a product or service.

Serviceable addressable market: The segment of your total TAM that you can reasonably target given your unique business model, geographical preferences, and other variables. 

Serviceable obtainable market: The size of your SAM that you could convert into paying customers given other competitors in your market.

Calculating these market sizes is important for your business and is also expected from investors if you plan on fundraising. 

Who’s Raising? 💰

• 🇦🇪 UAE-based eyewear retailer Eyewa has raised $100 million in its Series C funding round, led by General Atlantic with participation from Badwa Capital and Turmeric Capital.

• 🇸🇦 Saudi Arabia-based fintech Lean Technologies has secured $67.5 million in Series B funding round, led by General Catalyst, with participation from Bain Capital Ventures, Stanley Druckenmiller’s Duquesne Family Office, Arbor Ventures, and Saudi Venture Capital, among others. 

• 🇦🇪 UAE-based SaaS solutions provider UnifyApps has raised $20 million in a Series A funding round led by Iconiq Growth and joined by Elevation Capital, bringing the company’s total funding to $31 million.

• 🇸🇬 Singapore-based logistics startup Locad has raised $9 million in a pre-Series B funding round, co-led by Global Ventures and existing investor Reefknot Investments. Other participating investors include Sumitomo Equity Ventures and existing investors Antler Elevate; Febe Ventures; and JG Summit. The funding will accelerate their expansion into MENA, starting with UAE and Saudi in Q4 2024.

• 🇪🇬 Egypt-based online marketplace for used cars Sylndr has secured a $7.46 million capital facility tailored specifically to the unique dynamics of Sylndr’s business model.

• 🇦🇪 UAE-based fintech Pemo has secured a $7 million pre-Series A funding round, co-led by Shorooq and Augmentum Fintech.

• 🇬🇧 UK-based climatetech Watercycle Technologies has closed a $5.6 million Series A investment round led by Par Equity as part of a syndicate with Greater Manchester Combined Authority ('GMCA'), Aer Ventures and the University of Manchester Innovation Factory. The company will use this investment to expand into MENA.

• 🇸🇦 Saudi Arabia-based fintech EdfaPay has secured a $5 million pre-Series A funding round led by OmanTel Innovation Labs, with participation from Aljabr MENA and Waad Investment.

• 🇪🇬 Egypt-based furniture e-commerce platform ariika has raised $3 million in a Series A extension round, led by Beltone Venture Capital and Citadel International Holdings. 

• 🇪🇬 Egypt-based supply chain startup Qara has closed a $2.6 million funding round from undisclosed investors. 

• 🇪🇬 Egypt-based insurtech broker Amenli has secured a new funding round of $2.3 million, led by the European Bank for Reconstruction and Development Venture Capital arm (EBRD), along with a follow-on investment from Y Combinator (YC). 

• 🇦🇪 UAE-based maritime fintech platform Shipfinex has secured $1.5 million in Seed funding, led by Gaurav Mehta, Chairman of Best Oasis Limited and SPM Shipping DMCC.

M&A activity 📜

• Iraq-based edtech Eduba was acquired by an undisclosed telecommunications conglomerate for a seven-figure amount. Source.

• Saudi Arabia-based investment company Naif Al Rajhi Investment has invested in Jordan’s AI Arabic content platform Mawdoo3 for a strategic stake (value undisclosed). Source.

• PIF acquires majority stake in MBC. The transaction is still pending regulatory approval. Source.

• PwC Middle East to acquire Saudi consultancy Emkan Education to further invest in the region's education and skills transformation. Source.

Want to learn more? Schedule a time with our team below!