Riyadh – Mubasher: The share of total venture capital (VC) transactions deployed to Saudi fintech startups increased by 15% in the first half (H1) of 2021, topping the Kingdom’s industries.
There were 13 deals concluded in the fintech segment, acquiring 24% of the total 54 transactions in H1-21, according to a recent report by Magnitt.
Food and beverage startups followed, with an 8% growth in the number of VC deals to account for 11% of the total.
Logistics and IT solutions were also among the top five Saudi industries of which deals' share rose by 6% and 2%, respectively, to acquire 9% each of the total VC transactions in Saudi Arabia in the January-June 2021 period.
Transport was the last best-performing sector in the top five list, with a 6% positive change to hold a 7% share of the total VC deals in H1-21.
Deployed Capital in H1
In terms of funding, fintech also led the top five VC industry list with a growth of 23% in the financing share change to acquire 25% of the total $168 million Saudi funding in H1-21.
Food and beverage also ranked the second with a rise of 17% in the share amount to account for 19% of the total transactions value. This was backed by Foodics which closed $20 million earlier this year.
Despite a plunge of 46% in the funding share, e-commerce startups represented 19% of the total value to rank as the second largest industry in terms of deployed capital. Sary has contributed to this position after securing $31 million in funding in H1-21.
IT Solutions and agriculture followed with a positive change of 10% and 5%, respectively, to acquire 11% and 6% of the total $168 million.
Saudi Arabia’s VC industry has grown by 65% annually to hit its highest semi-annual funding amount in the first six months of 2021.
