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  2. VC funding for Saudi e-commerce startups hits SAR 1.6 bn

VC funding for Saudi e-commerce startups hits SAR 1.6 bn

NOHA.GAD
Aug 27, 2024
Saudi e-commerce startups secured VC funding worth SAR 1.6 billion in 2023

Riyadh - Sharikat Mubasher: The e-commerce ecosystem in Saudi Arabia witnessed significant growth as e-commerce startups secured SAR 1.6 billion ($428 million) in venture capital (VC) funding in 2023, a recent report by the Small and Medium Enterprises General Authority (Monsha’at) unveiled.

The report, titled ‘Unlocking E-commerce for SMEs’, revealed that the total number of verified commercial registrars for e-commerce businesses by the Saudi Business Center reached 16,556 in 2023.

As the second-highest VC-funded sector in the Kingdom, e-commerce is expected to contribute 12% to the national gross domestic product (GDP) in 2025, achieving a compound annual growth rate (CAGR) of 15% between 2020-2025. Additionally, the number of e-commerce users is anticipated to hit 34.5 million by 2025.

The e-commerce total revenues are projected to touch SAR 260 billion by 2025, while cashless payments are expected to account for 80% of payments in the Kingdom by 2030.

Muhannad Almulhim, an E-commerce Consultant at the E-commerce Council, said: “By 2024, the expected growth in e-commerce revenues is estimated at SAR 211 billion according to the E-Commerce Council, indicating positive developments in several key areas, including infrastructure and the legislative environment made possible by Vision 2030.”

Moreover, the report highlighted the impact of e-commerce on the SME sector and the challenges facing e-commerce SMEs in the Kingdom, as well as Monhsa'at's efforts to nurture SMEs in the e-commerce sector.

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Vitalls secures $1.5 mn investment from EST Growmore
Abu Dhabi - Sharikat Mubasher: Vitalls, an AI-powered digital health passport platform headquartered in Abu Dhabi, secured a $1.5 million investment from EST Growmore, EST Group's investment arm, as part of its seed round.Both parties signed the investment agreement at the Abu Dhabi Future Health Summit, under which EST Growmore may invest an additional $1 million in Vitalls, the health platform announced today.The agreement was signed by Mehdi Bouchenak, Founder of Vitalls, and Sindhu Bhaskar, Chairman of EST Group.Beyond capital, the partnership opens access to EST Growmore's investment ecosystem, including group telecom and healthcare portfolio companies. The two companies will explore collaboration opportunities across distribution, partnerships, and product development to accelerate Vitalls' growth regionally and globally.Commenting on the agreement, Bouchenak said: “This agreement is a major step for Vitalls. More than the capital, it confirms that the problem we set out to solve is real and urgent. When an investor of Dr. Sindhu Bhaskar's experience commits after looking closely at what we have built, it tells us the need is understood. Patient-owned health records are no longer a niche idea. They are where healthcare is going."Moreover, the investment reflects a shared conviction that people should own their health history and carry it with them wherever they live, work, or travel.

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