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Zest Your Equity | 30-October-2024

Zest Your Equity | 30-October-2024

Zest's key terms: recurring revenue, EBITDA, and mergers and acquisitions

Ghalia from Zest
October 30, 2024

This week’s agenda 📜

Key terms and concepts ✍️
Startup fundraising? 💰
M&A activity 📜
What we’re reading 📖

Let’s dive in 👇

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Key terms and concepts ✍️

Recurring revenue: Recurring revenue is a financial metric commonly used by subscription-based companies to analyze how sustainable their growth is and forecast their revenue. Recurring revenue can be analyzed on a monthly basis—monthly recurring revenue (MRR)—or an annual basis—annual recurring revenue (ARR).

Earnings before interest, taxes, depreciation, and amortization (EBITDA): EBITDA is a key metric that describes the financial performance of a company and is included as a line item on a company’s financial statements. The purpose of EBITDA is to calculate the company’s operating profitability and its ability to generate cash. This metric is most commonly used in private equity and M&A transactions as potential buyers conduct due diligence on potential investment opportunities.

Mergers and Acquisitions (M&A): Private market transactions that involve the buying and selling—or consolidation of—two or more companies typically for strategic or financial purposes.

M&A transactions can be quite complex, requiring extensive due diligence, experienced legal teams, lengthy negotiations, and transaction tools like escrow providers.

Companies that engage in M&A activities can be private equity firms, family offices, hedge funds, corporations, or even other individuals.

M&A also provides an opportunity for entrepreneurs and shareholders to realize a return on their company equity depending on how the deal is structured.

Who’s Raising? 💰

🇦🇪 UAE-headquartered fintech Abhi has secured $15 million in debt financing led by Shorooq Partners and Amplify Growth Partnership.
🇦🇪 UAE-based proptech Prypco has raised $10 million in a Seed funding round, led by Shorooq Partners, with participation from Apparel Group and other investors.
🇸🇦 Saudi Arabia-headquartered mobility startup invygo has raised an $8 million Series A extension provided by STV’s newly launched NICE Fund, as well as existing investors including Al Rajhi Partners, Arab Bank Ventures, SPV, MEVP, and C5.
🇸🇦 Saudi Arabia-based fintech Mala has closed a $7 million pre-Seed funding round, led by VentureSouq and Shorooq Partners, as well as M Capital, BECO Capital, Access Bridge Ventures, Waad Investment, Palm Ventures, and Silicon Valley-based fund D Global Ventures ("DGV").
🇸🇦 Saudi Arabia-based game studio UMX has raised $4.5 million from Jetapult, an investment company backed by Accel Partners.
🇿🇦 South Africa-based e-commerce logistics startup Pargo has expanded into the Egyptian market after raising $4 million in investment, led by 3Capital Ventures, Endeavor, SAAD Investment Holdings and UW Ventures.
🇶🇦 Qatar-based delivery app Pass has raised $2.7 million in its pre-Series A funding round from undisclosed investors.
🇸🇦 Saudi Arabia-based foodtech Nabt has closed a $1.5 million Seed investment round, led by Merak Capital with the participation of other angel investors.
🇸🇦 Saudi Arabia-based proptech ARKTECH has closed a $1 million pre-Seed investment round, led by Core Vision Investment.

M&A activity 📜

UAE-based e-commerce platform Best Kept Shared has acquired the UAE’s peer-to-peer (P2P) fashion resale platform BAZAARA for an unknown amount. Source.

What We’re Reading 📖

How Brand Positioning Helps With Smooth M&A Integration And Long-Term Success

After an M&A transaction, a well-executed brand positioning exercise can be the difference between a smooth transition and a cultural clash. Jaclyn Hesse, co-founder of Taillight, lays out the process of establishing the new entity's North Star.

Are Board Observers A Good Idea For A Startup?

A well-rounded board can be the difference between scaling the next unicorn and languishing in the land of mediocrity. Thomvest Ventures' Kip Knight tackles the burning question of if a startup's board should be limited to regular board members (voting) or allow board observers (nonvoting) to join.

What is GP stakes investing?

GP stakes investing isn’t a new concept—in fact, the strategy has been around for years. During that time though, the approach and application investors use with regard to GP stakes investing has evolved. This blog post explores what GP stakes investing is, the history of the strategy, and its status at present.

VC megadeals are booming — and AI is surprisingly not the top category

Ask any VC if we’re still in a venture capital bear market and that investor will almost certainly tell you no, that funding is still flowing for good

Google launches “AI First” startup accelerator in MENA

Tech giant Google has launched its Google for Startups Accelerator: AI First programme during an event at the Dubai Future Foundation.

Subsidiary Of Saudi Arabia's eXtra Aims For $264M IPO On Tadawul

Saudi Arabia’s United International Holding Co (UIHC), a subsidiary of the listed United Electronics Company (eXtra), plans to raise between $239.7 million (SAR 900 million) and $263.6 million (SAR 990 million) in its upcoming initial public offering on the Saudi Exchange (Tadawul).

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