VentureSouq, a venture capital firm based in the GCC, has announced the closing of its second FinTech Fund (FinTech Fund II). This move strengthens its role as a leading early-stage investor in the MENA region.
The fund’s close is supported by top investors, including Jada Fund of Funds (owned by PIF), Saudi Venture Capital Company (SVC), Saudi Awwal Bank (SAB), Mubadala Investment Company, Takamol Holding, Krafton, and Jordan’s Innovative Startups and SMEs Fund (ISSF).
Suneel Gokhale, General Partner at VentureSouq, commented, “FinTech Fund II is a testament to the depth of opportunity in this region and the strength of our platform. Since launching our first sector-specific FinTech fund in 2021, we’ve seen tremendous traction across markets. What’s clear is that we’re still early in this journey, but the foundations are now firmly in place. We’re also seeing FinTech as the principal entry point for AI into our region from a deployment standpoint – the impact of which is certainly still ahead of us. This new fund allows us to keep pushing that momentum forward with strong support from partners who understand the regulatory and market dynamics critical to scaling ventures here.”
Maan Eshgi, General Partner at VentureSouq, added: “With Fund II, we’ve built on the foundation we established with Fund I – assembling a strategic LP base that understands the evolving MENA venture landscape and is positioned to actively support our portfolio companies as they scale across the region. Our experience shows that success in MENA requires navigating complex regulatory environments and unlocking cross-border opportunities. With the right stakeholders in place, we’re confident that Fund II will help accelerate the next generation of category-defining startups.”
VentureSouq continues to show strong growth in venture capital, building an expanding portfolio across FinTech, climate tech, and other emerging technologies. The firm has supported several high-growth startups, including Tabby, a top buy-now-pay-later platform; Huspy, a digital real estate platform; Yassir, a super app serving Algeria, Morocco, and Tunisia; Salla, a leading e-commerce platform helping merchants in Saudi Arabia; and Mozn, a Saudi AI company focused on risk and compliance solutions.
Saeed Assiri, Chief Innovation Banking Officer at Saudi Awwal Bank, said: “This fund exemplifies the type of strategic partnerships we champion at SAB – one of the leading banks in the Kingdom of Saudi Arabia – where innovation is a shared journey between visionary founders, institutional investors, and forward-leaning stakeholders. We believe strongly in the transformative potential of MENA’s FinTech sector and in the value of building enduring foundations that will enable its growth for decades to come. Our collaboration with VentureSouq reflects our steadfast commitment to shaping the region’s innovation economy in ways that serve both today’s entrepreneurs and tomorrow’s society. This further demonstrates our commitment to driving financial innovation in Saudi Arabia.”
He added: “At SAB, we are deeply focused on supporting visionary investment platforms that align with our innovation strategy and contribute meaningfully to the region’s growth. VentureSouq continues to demonstrate strong momentum in venture capital with a growing portfolio across FinTech, climate tech, and adjacent emerging technologies. With a strong track record of strategic investments and successful exits, VentureSouq remains a key player in advancing innovation across the MENA region.”
Earlier this year, Forbes named VentureSouq one of the Top Venture Capital Firms in the Middle East for 2024, highlighting growing confidence in the firm’s leadership in emerging markets and its smart approach to investing in innovation.
Since its founding, VentureSouq has become a key investor in the MENA startup ecosystem. Through its first FinTech fund, it backed over 40 early-stage startups across the UAE, Saudi Arabia, Egypt, Jordan, and Pakistan. Many of these startups have gone on to raise more funding from global investors and expand into new markets.
VentureSouq offers more than just money – it provides regulatory guidance, operational support, and a founder-first, hands-on approach. Its platform also connects public and private capital to help scale innovation across the region.
The MENA region is expected to be the fastest-growing FinTech market in the world, with net revenue projected to grow 35% annually through 2028, much higher than the global average of 15%.
FinTech Fund II builds on the success of VentureSouq’s first FinTech fund – the first vertical fund of its kind in MENA – and shows strong confidence in the long-term potential of the region’s FinTech sector.
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