Happy Thursday Everyone!

Wednesday marked the end of LEAP 2025 in Riyadh, Saudi Arabia, with more than $24 Billion of announcements and deals made at the event over four days. More on it below.

Meanwhile, in the neighbouring UAE, His Highness Sheikh Mohamed bin Zayed Al Nahyan on Wednesday met with several leaders and heads of delegations participating in the World Governments Summit 2025, being held in Dubai under the theme ‘Shaping Future Governments’. Today, we will see world’s richest man Elon Musk talk to UAE Minister of AI, His Excellency Omar Sultan Al Olama at the event.

Our big stories for today:

Tabby is now worth $3.3 billion as it raised fresh capital, $160 million in a Series E, and is also going for an IPO soon - founder Hosam Arab thinks soon equals to within 18 months. Meanwhile, one of the biggest early-stage VC funding round was seen by Abu Dhabi-based AppliedAI ($55 million) with UAE capital’s AI giant G42 leading it.

Scroll down for details.

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BNPL Platform Tabby Doubles Valuation to $3.3B Ahead of Probable IPO at Tadawul

📰 What is it about?

• Gulf-based fintech Tabby has more than doubled its valuation to $3.3 billion after securing $160 million in a Series E funding round.

• The round was led by Blue Pool Capital (backed by Alibaba’s Joe Tsai) and Hassana Investment Company (Saudi pension fund’s investment arm).

• Tabby was previously valued at $1.5 billion in late 2023.

• The company, which offers BNPL (Buy Now, Pay Later) services, is expanding its financial product range.

• Major backers include Mubadala, and it has partnerships with Amazon, Shein, and 40,000+ brands.

💡 Why it matters?

• BNPL demand surged post-pandemic, but regulators in the US and UK have raised concerns over consumer risk.

• Tabby’s valuation jump signals strong investor confidence in the MENA fintech sector.

• The company is expanding beyond BNPL, aiming to offer digital wallets, spending accounts, payments, and financial management tools.

• With 20 million users targeted by year-end, Tabby is emerging as a dominant regional fintech player.

🔜 What’s next?

• IPO within 18 months, with Saudi Arabia as a potential listing venue.

• HSBC, JP Morgan, and Morgan Stanley have been hired to work on the IPO.

• The Gulf’s stock market is experiencing a wave of new IPOs, driven by economic diversification efforts.

• Tabby’s public listing could set a precedent for more tech and growth-focused companies in the region’s markets.

Markets

STEP Conference Dubai 2025: THE Ultimate Tech Festival is Back from February 19-20 at Dubai Internet City

The Step Conference Dubai 2025 is scheduled for February 19-20 at Dubai Internet City. Recognized as the largest tech festival in the Middle East and North Africa (MENA) region, the event anticipates over 8,000 attendees, more than 400 showcasing startups, and upwards of 100 participating companies.

The conference features four main tracks: Founders and Funders, AI Agents, LLMs & Cloud, Fintech for SMBs, AdTech 2.0, and PropTech. Attendees can engage in talks, workshops, and networking sessions tailored to these themes. Notable speakers include H.E. Alia Bint Abdulla Al Mazrouei, the UAE's Minister of State for Entrepreneurship.

Participating in Step Conference offers unparalleled opportunities to connect with industry leaders, investors, and innovators. The event provides a platform to explore the latest technological advancements, gain insights from experts, and foster partnerships that drive business growth.

Whether you're an entrepreneur seeking investment, a professional aiming to expand your network, or a tech enthusiast eager to stay abreast of industry trends, Step Conference Dubai 2025 is an event not to be missed.

Use our code SMASHI to get special price on your tickets.

We, Smashi Business, are the media partners for the event and we will be on the ground to bring you all the updates from the event. You can follow us here…

AppliedAI Raises $55M Series A, with Abu Dhabi AI Giant G42 Leading

📰 What is it about?

• AppliedAI, a UAE-based insurtech startup, has secured $55 million in Series A funding at a $300 million pre-investment valuation.

• The round was led by G42, with participation from Palantir, Bessemer Venture Partners, McKinsey, and Accrete Capital.

• The company was founded in London in 2021 but relocated to Abu Dhabi in 2022 to benefit from government grants.

• AppliedAI uses artificial intelligence to automate medical billing and insurance claims, improving speed and accuracy compared to traditional outsourcing.

💡 Why it matters?

• The funding highlights growing investor interest in AI-powered automation, particularly in regulated industrieslike healthcare, insurance, and pharmaceuticals.

• AppliedAI’s hybrid AI-human approach has allowed it to process over 4 million pages of U.S. medical records last year.

• The company's clients include M42 Healthcare (Abu Dhabi), U.S. law firm Morgan & Morgan, and UK-based Qinecsa.

• With G42 and Palantir backing the deal, it signals strong confidence in AI-driven workflow automation.

🔜 What’s next?

• AppliedAI plans to develop more AI tools and expand its team to support clients in the U.S. and Europe.

• The company aims to scale operations beyond medical billing, targeting a broader range of corporate clients.

• With UAE positioning itself as a hub for AI and fintech, AppliedAI's success could pave the way for more AI-driven startups in the region.

Leap 2025 in Riyadh, Saudi Arabia: Investments and Deals Announcements Reach Nearly $24 Billion

The third day of LEAP 2025 saw agreements worth $1.8 billion on Day 3, ramping up for nearly $24 billion after day 1 and 2 rallies, with major investments in R&D, AI, digital infrastructure, cloud computing, and talent development, according to Saudi Press Agency (SPA). The day also featured several startup funding rounds and large-scale digital economy initiatives.

Key Announcements and Deals

• Equinix (U.S.) is investing over $1 billion to establish a carrier-neutral data center in Saudi Arabia.

• Edgnex Data Centers (Damac, UAE) plans to expand its Saudi data center capacity to 500 MW by 2030, focusing on AI and cloud computing.

Six funds launched new investments totaling $695 million, aimed at supporting startups and digital infrastructure:

• $300 million from HandsOn Global Management (U.S.) to establish a Saudi HQ and publish video games.

• $150 million from the National Technology Development Program to fund four new accelerators.

• $80 million for digital infrastructure projects from Joa Capital.

• $75 million data-driven investment fund from Ula Capital.

• $60 million accelerator program by Orbit Startups (Singapore).

• $30 million early-stage startup fund from Riyadh-based Sharaka.

A total of $102 million was raised by startups:

• Merit Incentives (UAE) raised $28 million in a Series B round.

• Hydra secured $3 million for its upcoming game Hydratac, set to launch later this year.

• Lahint (Saudi Arabia), a government service automation startup, raised SAR 4 million in a pre-seed round.

• Ula.me (Saudi Arabia) raised $28 million in a Series B round led by Rua Growth Fund, with participation from Jordan Capital & Investment Fund and Foursan Group.

• Torod (Saudi Arabia) secured SAR 42 million in a Series A round led by Wa’ed Ventures (Aramco-backed) and Elm, with participation from Impact46, Hala Ventures, Suhail Ventures, and other investors.

• Buildnow (Saudi Arabia) raised $9.7 million in an investment round led by Arbah Capital, with participation from Saudi Technology Ventures (STV).

• Taager (Saudi Arabia) secured $6.8 million in a pre-Series B round led by Norrsken22, with participation from Endeavor Catalyst, Beltone VC, 4DX Ventures, Raed Ventures, Beco Capital, and Breyer Capital.

• Madkhol Capital (Saudi Arabia) secured $2.2 million in a Seed round, co-led by Seize Institute of Consulting and Business Solutions and Numu Angel Investing Community, with additional angel investors.

Other announcements:

• Saudi Ministry of Interior unveiled AI-powered smart glasses designed to assist security and service sectors by identifying vehicles and monitoring real-time violations.

• Microsoft Arabia and the National IT Academy (NITA) announced the launch of the first Microsoft Datacenter Academy (DCA) in the Middle East to develop datacenter skills and enhance employability in Saudi Arabia.

• Saudi Tourism Authority introduced "Sara" – an AI-powered smart tour guide on the "Spirit of Saudi Arabia" platform, offering interactive assistance and smart recommendations in multiple languages to enhance tourism experiences.

💡 Why it matters?

• LEAP 2025’s billions of dollars of agreements highlights Saudi Arabia’s aggressive push into AI, digital infrastructure, and startup ecosystems.

• The massive investments in data centers, cloud computing, and talent development will strengthen the Kingdom’s position as a leading tech hub.

• The startup funding rounds signal growing investor confidence in Saudi-based innovation, while the new AI-driven solutions (like "Sara" and smart glasses) showcase the country’s commitment to digital transformation.

🔜 What’s next?

• Expect accelerated deployment of AI and 5G solutions across sectors, increased startup activity fueled by fresh investment, and stronger global partnerships in tech and digital infrastructure.

• The success of these initiatives will hinge on execution—whether the Kingdom can translate these announcements into tangible economic and job market growth.

• Keep an eye on how these startups scale, how global tech giants deepen their presence in Saudi Arabia, and the impact of AI on industries like tourism, security, and logistics.

🔍In other news…

1. Flyin taxis by 2030 in Saudi Arabia?

2. PIF Announces acquisition of a 30% stake in Masdar for Building Materials Company (Masdar).

3. UAE Minister of Economy: 5 to 6% expected growth of UAE national economy in 2025.

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