Riyadh Angel Investors (RAI), a Saudi-based angel network, is currently in late-stafe discussions with two start-ups in the country for investments, the investment group’s co-founder said.
The new talks come on the heels of RAI closing an investment agreement with Saudi fintech start-up Wafeer.
“We are currently in the [process of] finalisation of three investments. One of them is completed – which is Wafeer. The other two are being finalised,” Abdullah Alaraj, co-founder and chairman of Riyadh Angel Investors, told Arabian Business.
“The investment in Wafeer was led by Nama Ventures – a Saudi-focussed venture capital – and Riyadh Angels came on and invested using the same terms,” disclosed Alaraj, who is also a managing partner of Nama Ventures.
Alaraj, however, did not disclose the names of the two start-ups, or the amount the network invested in Wafeer.
Founded in 2019 by the trio of Abdulaziz AlJasser, Ahmed Ramadan, and Salah AlBassam, Wafeer is a personal finance management app, which is approved by the Saudi Central Bank (SAMA) to operate in the country as a part of the SAMA Regulatory Sandbox in 2020.
The platform tracks users’ expenses either through direct connectivity with the banks or text messages, aiming to raise awareness and help individuals understand their spending behaviour better.
“At Riyadh Angels we focus on early stage investments – pre-seed and seed. We have [presently] a very good deal flow. Our focus is to attract and value-add angel investors who can be of help and support to our portfolio companies and at the same time who can be a source of a good deal flow,” Alaraj said.
As for the preferred sectors for RIA for investments, Alaraj said: “All sectors are [currently] attractive because the start-up ecosystem [in Saudi Arabia] has just started, though fintech is still the hottest.”
Alaraj was also excited about the investment potential in start-ups in Saudi Arabia.
“Though I do not have the actual figures, the investment numbers have been seeing a dramatic increase of late – a fact which has been confirmed by various research reports as well.
Abdullah Alaraj, co-founder and chairman of Riyadh Angel Investors
“More and more family offices are interested in the space now. So I anticipate that huge numbers will be deployed [going forward],” said Alaraj, an academic-turned investor who has also seeded several start-ups in the US and the UK.
When asked whether there was any trend of more and more Indian talent coming to Saudi Arabia to set up ventures, Alaraj said: “I am not aware of that but I feel India is booming too. So I think the real Indian talent will prefer to stay in India because venture capitals from the US and China are heavily investing there.”
As for Saudi investments in India, Alaaj said India is a great place to invest in now.
“It is a very similar scene to China 10 years ago. I personally invested in Indian start-ups through a syndicate from the US last year. I know some firms from Saudi do invest in India,” said Alaraj, who is also a Silicon Valley veteran.
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