Startup Wrap: MENA startup deals gather pace as investors back AI, consumer brands and climate tech

Venture activity across the Middle East and Africa saw a flurry of deals and program moves last week as investors backed artificial intelligence, consumer brands, climate tech and digital media. Gulf- and London-based AI startup 1001 raised $30 million in a Series A led by Lux Capital, Beltone Venture Capital increased its stakes in Egyptian consumer brands ariika and Lychee to support a combined five-store expansion into Riyadh, and Pan‑African climate fund Catalyst Fund reached a $30 million second close. OSN Streaming submitted a preliminary proposal to acquire the remaining publicly held shares of Anghami, offering $3.39 per share in a potential take-private transaction.

"Participating founders received mentorship, operator-led workshops, investor exposure and access to regional and global networks," the accelerator said, summarizing the benefits delivered to the eight startups chosen for the 11th cohort of the Sanabil Accelerator by 500 Global.

Founded in 2025 by Bilal Abu‑Ghazaleh, 1001 develops sovereign AI operating systems for operators in critical infrastructure sectors. The company, which previously raised $9 million in an October 2025 seed round, will use the new $30 million to expand its engineering team and strengthen commercial, sales and go-to-market operations across key GCC markets. The Series A included participation from Sanabil Investments, Hanabi, 9Yards, General Catalyst, CIV and Chris Re, as well as regional and international angel investors.

Beltone Venture Capital, the VC arm of Beltone Holding, said its increased investment in home furnishings brand ariika and healthy food-and-beverage brand Lychee will underpin regional expansion, with ariika—led by Khaled Attallah—opening two stores in Riyadh and Lychee—founded by Mohamed Assy—opening three. Beltone described Saudi Arabia as a "key growth market" and framed the openings as the start of a broader strategy to build a new generation of regional consumer companies.

• Sanabil Accelerator by 500 Global selected eight startups from more than 690 applicants for its 11th cohort, including Carevision, Emtethal, IBEA, Kami, Melon Digital, Raid AI, TPP and Xsquare. The program ran from April 5 to July 1 and emphasized AI-enabled products and infrastructure technologies.
• BrainsMingle, a US-based AI professional-networking startup founded in 2024 by Belal Amin and Yousef Gamal, secured a $400,000 seed investment from BasharSoft Group to develop its AI-powered, video-first platform and expand globally.
• OSN Streaming, which already owns roughly 67% of Anghami, submitted a non-binding proposal valuing the remaining shares at $3.39 each. The offer is subject to a special committee recommendation, board and shareholder approvals and regulatory processes; MBC Group holds a 13.7% stake in Anghami.
• Catalyst Fund, led by Maelis Carraro, Maxime Bayen, Oluwatoyin Emmanuel‑Olubake and Amolo Ng’weno, reached a $30 million second close for its debut pan‑African climate fund. Backers include the International Finance Corporation, FASA, Shell Foundation, Trafigura Foundation, Speedinvest, Blink Impact and the Women Entrepreneurs Finance Initiative. The fund has invested in 28 startups across 10 African markets and aims to back 40 companies.

Outlook: Market participants said the activity signals continued investor appetite for sector-specific AI, consumer retail rollouts into Saudi Arabia and climate resilience startups across Africa. 1001’s capital raise positions it to scale engineering and commercial operations in the GCC, while Catalyst Fund’s additional commitments will allow further pre‑seed to Series A backing and venture-building support for climate tech founders. Applications for the Sanabil Accelerator’s 12th cohort are now open to startups across the Middle East and North Africa, maintaining momentum in founder support programs that combine remote and in-person delivery.