tali ventures, the corporate venture capital division of stc Group, alongside NorthLadder, a prominent device trade-in platform operating in over 10 countries, has successfully completed a $10 million Series B funding round, according to a statement.
This funding round was spearheaded by tali ventures, with additional contributions from the Dutch Founders Fund and Crescent Ventures.
Commitment to sustainability
As stated in the release, stc Group is recognized as a leading digital enabler, and this investment underscores the group’s dedication to nurturing a dynamic entrepreneurial ecosystem across its operational markets while promoting a more sustainable future.
Read more: Saudi Arabia takes the lead in MENA venture capital funding
Focus on high-growth companies
tali ventures, as noted in the announcement, concentrates on strategic investments in high-growth companies spanning from early to late stages. The establishment of tali ventures earlier this year marks a significant step in the group’s ongoing commitment to facilitating digital transformation and fostering sustainable growth.
Vision for the future
Majed I. Aljarboua, general manager of Corporate Fund and Entrepreneurship at stc, commented that this investment reflects the shared objective of tali ventures and stc Group to advance technological innovation while supporting startups that will influence the future of technology and society. He also noted that NorthLadder’s dedication to circularity aligns seamlessly with their vision of a sustainable world, where safeguarding both the community and the planet is not merely an afterthought, but an essential mission.
Commitment to fintech innovation
In September 2024, at the 24 Fintech conference, Saudi Arabia announced the creation of a SAR800 million ($213.12 million) venture capital fund aimed at fostering the development and launch of fintech companies and innovative financial solutions within the Kingdom.
During a keynote presentation, Emad Kashgari, CEO of 1957 Ventures, introduced this closed-end investment fund, which is an initiative of 1957 Ventures and receives backing from Riyad Bank. He emphasized the firm’s dedication to advancing fintech innovation in Saudi Arabia.
Saudi Arabia’s leading role in MENA
Kashgari pointed out that Saudi Arabia is leading the fintech sector in the Middle East and North Africa (MENA), representing 58 percent of all venture capital investments in the MENA fintech landscape in 2023. He anticipates that the market value will soar to $2.4 billion by 2029, further solidifying the Kingdom’s prominent position.
Milestone in venture capital funding
In January 2024, Saudi Arabia celebrated a significant achievement by securing the top rank in venture capital (VC) funding within the MENA region for 2023. This accomplishment underscores the nation’s substantial strides in its economic and financial sectors, in line with the aspirations of Vision 2030. The Saudi Press Agency (SPA), referencing data from MAGNiTT, a MENA-focused venture data platform, reported that the Kingdom accounted for an impressive 52 percent of total VC funding in the MENA region, a notable rise from 31 percent in 2022.
Growth in startup funding
There was a remarkable 33 percent increase in funding for regional startups compared to the previous year. Nabeel Koshak, CEO and board member of Saudi Venture Capital (SVC), credited this success to various government initiatives launched under Vision 2030, as well as the development of a legislative and regulatory framework that promotes investment. The active participation of the private sector and innovative entrepreneurs also played an essential role in this achievement. Koshak expressed pride in SVC’s pivotal role in enhancing the venture capital ecosystem in the Kingdom, noting that Saudi Arabia’s ranking improved from fourth place in 2018 to first place in 2023. Importantly, funding for regional startups in 2023 increased twenty-one-fold compared to 2018.
Investment in Saqr Fund II
In October 2024, SVC announced its decision to invest $15 million in Saqr Fund II, a venture capital fund managed by Vision Ventures. Saqr Fund II aims for a total size of $90 million and will focus on early-stage startups, spanning from pre-seed to pre-Series B, with a sector-agnostic approach in Saudi Arabia and the broader MENA region.
Continued leadership in venture capital
In August 2023, official statistics indicated that despite a decline in venture capital funding across the MENA region during the second quarter (Q2) of 2023, Saudi Arabia remained the frontrunner, raising a total of $446 million in the first half (H1) of the year.
Funding directed towards SMEs
A report from the SME General Authority (Monsha’at) revealed that Saudi Arabia captured 42 percent of all funding directed toward SMEs in the MENA region during the first half of 2023.
The findings showed a 2.6 percent increase in the small and medium enterprise (SME) sector in Saudi Arabia during Q2 of 2023. The number of SMEs grew to 1.23 million, up from 1.2 million in Q1. By the end of Q2, Riyadh emerged as the hub for 42.3 percent of the SMEs, as highlighted in the report.
Regional distribution of SMEs
The Makkah region accounted for 18.6 percent of the SMEs, while the Eastern Province followed closely with 10.9 percent. Aseer Province hosted 5.3 percent of the SMEs, and the remaining cities collectively represented 22.9 percent of the total.
SME ecosystem
The report provided a comprehensive overview of Saudi Arabia’s SME landscape, detailing the presence of 17,888 medium-sized companies, 152,825 small establishments, and 1.06 million micro firms. By the end of Q2, the Riyadh province housed a total of 518,516 SMEs, while the Eastern Province supported 228,337 SMEs. The Aseer region contributed 64,440 SMEs.
For more news on banking & finance, click here.
