Scaling MENA #14
A positive week of momentum as the Iran-US ceasefire negotiations continue.
Welcome to the Scaling MENA newsletter, bringing you the top stories from across the region every week.
I hope you find the newsletter insightful, but I’m always open to feedback and suggestions. Let’s get into it!
💰 Investment Rounds
🇸🇦 Aya closed $7M in Series A led by RAED Ventures. See more here.
🇸🇦 Jozo raised $2.2M in seed led by Sheikh Hamad Bin Saedan Real Estate Co. See more here.
🇪🇬 INVIA raised $1.2M from angel investors and strategic backers. See more here.
🇪🇬 Reme-D secured $500K from Global Innovation Fund. See more here.
🇶🇦 Sufra AI secured $100K from Snoonu. See more here.
🇸🇦 AVA secured undisclosed investment from Plug and Play Middle East. See more here.
📰 Startup News
Morocco just bet $69M on 800 Startups
Most government startup programs follow a familiar script: announce big numbers, hand out small checks, and hope for the best. Morocco just tore up that playbook.
Tamwilcom, the country’s public financing institution, just launched a $69 million venture-building program that’s refreshingly different. Over three years, they’re planning on backing 800 startups.
Instead of the usual “here’s your grant, good luck” approach, Tamwilcom is paying founders a monthly stipend while they build. You read that right, they’re treating early-stage founders like they’re actually working full-time on their startups, not asking them to bootstrap while juggling three side hustles.
The program includes prototype funding, loans up to $200K, and something most founders struggle with: corporate partnerships. Tamwilcom is actively connecting startups with established companies to land early contracts. That’s the difference between burning through runway while searching for your first customer and actually generating revenue while you build.
They’ve assembled a solid partner roster: Technopark, CEED Maroc, Flat6Labs, and 500 Global.
Morocco’s been quietly building startup infrastructure while the rest of MENA grabbed headlines. This program signals they’re ready to move from building the foundation to scaling the ecosystem.
800 startups over three years is aggressive, but the structure suggests they’re serious about seeing founders through to traction, not just throwing money at the problem. If they execute well, this could rewrite how governments support early-stage companies across the region.
Read more here.
Homegrown Ventures closes $22.8 million Fund I
For years, MENA founders building consumer brands faced a frustrating reality: the region’s VC ecosystem was built for SaaS and fintech, not CPG.
That just changed. Homegrown Ventures closed their debut fund at $22.8 million, exceeding their $20M target and becoming MENA’s first purpose-built consumer goods fund.
Founders Nader Amiri and Ahmad Shamieh aren’t investors cosplaying as operators, they scaled brands at Unilever, Coca-Cola, Kraft, and Danone before jumping to the other side of the table.
The thesis is straightforward but powerful: over 55% of MENA’s population is under 35, and these consumers are actively choosing local brands that reflect their values. They want transparency, better ingredients, and products designed for their actual needs, not just multinational brands with Arabic packaging.
Homegrown has already deployed capital across five companies before final close, including PawPots (fresh pet food) and Plaay (zero processed sugar chocolate).
The fund is targeting “better-for-you” brands across food and beverage, wellness, personal care, and lifestyle. They’re deploying across MENA, South Asia, and select international markets.
What separates this from generic early-stage funds is specificity. Homegrown are doubling down on consumer brands with partners who understand retail distribution, manufacturing economics, and how to actually get products on shelves.
For MENA’s consumer brand founders, this is the fund you’ve been asking for. The question now is whether the pipeline can match the capital and expertise Homegrown is putting to work.
Read more here.
📰 Other News
Falak Holding invests in AI venture builder, Kernel AI
Falak Holding grabbed a majority stake in Kernel, an AI ventures builder operating across Saudi Arabia and Jordan. No deal terms disclosed.
Founded by Abdullah Alghuwairi, Kernel turns AI research into market-ready tools while running programs like AI Startup Lab, which trains technical teams to ship instead of just theorise.
Adwa Al-Dakheel, Falak’s founder and CEO, framed it clearly: AI is driving global economic transformation, and this deal positions Falak to back AI companies with more than capital. They’re adding technical depth to their investment platform.
Kernel will operate independently but plug into Falak’s network. Independence preserves the culture that made them worth buying, while Falak’s ecosystem gives them distribution and access to portfolio companies that need AI solutions.
Platform VCs like Falak are assembling capabilities in-house so they can actually help companies scale. When your portfolio needs AI engineering talent or wants to build proprietary models, having Kernel under the same roof changes the conversation entirely.
This isn’t about Kernel becoming Falak’s internal tech team, it’s about Falak building an integrated platform where investment, technical know-how, and market access operate as one system.
Read more here.
Cyclex acquired by Edafa Venture
Edafa Venture just closed a six-figure acquisition of Cyclex, an Egyptian waste recycling startup turning trash into revenue.
Cyclex converts non-hazardous solid waste into sellable products. Egypt generates massive waste volumes with limited recycling infrastructure, creating both an environmental crisis and an economic opening for companies that can extract value from materials headed to landfills.
Waste management generates recurring revenue, has clear unit economics, and benefits from regulatory tailwinds as governments tighten environmental standards.
Startup Sync, which brokered the deal, deserves credit for keeping M&A moving in a market where exits still feel rare. They handled valuation, ran negotiations, and delivered strategic guidance to help Cyclex find the right buyer rather than just any buyer.
Cyclex plans to expand across industrial and commercial sectors while staying focused on circular economy principles.
The broader signal here is simple. Climate tech exits are starting to happen in MENA, not because impact investors are feeling generous, but because these businesses generate actual cash flow.
Read more here.
That’s all for this week, thanks! All of our MENA based readers: please stay safe. Sam