VentureSouq Closes $50M FinTech Fund II, Boosts MENA Startup Scene

There’s a buzz going round the MENA startup scene this week, and for good reason—VentureSouq, a prominent venture capital outfit based in the GCC, has just announced the closing of its second FinTech Fund. This isn’t just any ordinary milestone; FinTech Fund II has garnered backing from a string of heavyweight supporters, from Jada Fund of Funds (linked to the Saudi Public Investment Fund) and Saudi Venture Capital Company, to big hitters like Saudi Awwal Bank, Mubadala Investment Company, Takamol Holding, Krafton and the ISSF of Jordan.

For founders and entrepreneurs, especially those trying to solve the never-ending puzzles of payments, digital banking, and even PropTech, VentureSouq’s sharp focus is music to the ears. The new fund zeroes in on early-stage FinTech and SaaS ventures across the region—think payments infrastructure, alternative lending, InsurTech, even personal financial management tools. It’s spot on for teams who need more than just cash; as many in the Arageek orbit know well, scaling a startup here is a bit of a faff, what with the region’s jigsaw of rules and markets. I reckon a fund whose partners “get” local dynamics is like gold dust.

Suneel Gokhale, one of VentureSouq’s general partners, laid it out plainly: “FinTech Fund II is a testament to the depth of opportunity in this region and the strength of our platform.” He also pointed out something intriguing—FinTech is increasingly becoming the bridge for bringing artificial intelligence into MENA, not just as hype but through practical use. Considering how AI is all the rage globally, it’s curious to see that in this part of the world, “deployment” still has plenty of ground to cover.

Maan Eshgi, also a general partner, noted that building on their first fund, they’ve managed to bring together strategic partners who will roll up their sleeves and support portfolio startups—not just as investors, but as active champions helping these companies handle tricky regulations and seize cross-border growth. It’s a fair point: navigating the rules and hopping borders is hardly for the faint-hearted.

On the flip side, from the banking sector, Saeed Assiri at Saudi Awwal Bank described this second fund as a classic example of “strategic partnerships”—something SAB is keen on for driving both financial innovation and wider economic impact for Saudi Arabia and beyond.

VentureSouq has already made a name for itself by backing high-growth startups, not just in FinTech but also newer spaces like climate tech. Earlier this year, Forbes even listed them among the Top Venture Capital Firms in the Middle East for 2024, which is a nice feather in their cap and, dare I say, proof that international investors are finally cottoning on to the MENA region’s massive potential.

Since getting off the ground, VentureSouq has invested in over 40 early-stage companies spanning the UAE, Saudi Arabia, Egypt, Jordan, and Pakistan. Lots of these companies have since drummed up follow-on investment from abroad, gradually spreading their wings across multiple markets. And it’s not just a cheque—VentureSouq offers mentoring, regulatory know-how, and practical help, all with a “founder-first” philosophy. That’s something we at Arageek have always cheered on: real, hands-on backing for entrepreneurs daring to chart their own path.

The region is tipped, according to recent reports, to see FinTech revenue surging at 35% a year until 2028. Honestly, that kind of pace would leave other markets eating our dust. No surprise then that institutional confidence is swelling—and investors, regulators, and founders alike are getting chuffed to bits about what the next few years might bring.

All in all, VentureSouq’s Fund II feels less like an isolated headline and more like another building block for a region that’s started to believe, finally, that its homegrown solutions can make waves well beyond its borders. And if you ask me, that’s long overdue—even if the road ahead looks, well… a tad bumpy at times.

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