Arabnet Arabnet

IFC, a member of the World Bank Group, is investing a total of $15M in a pair of investment funds managed by BECO Capital, part of an effort to support technology startups and drive innovation across MENA.

IFC invested $5M in BECO Capital’s inaugural $50M investment vehicle, launched in 2012. IFC has also invested $10M in BECO’s newest venture capital fund, which is expected to reach up to $100M.

BECO Capital has been an early backer of some of the region’s most successful technology companies including Careem, Property Finder, and Vezeeta. Such early support is considered crucial in a region where many entrepreneurs struggle to get the funding they need to turn their ideas into reality.

“Our vision at BECO is to improve the region through technology entrepreneurship and innovation,” said Dany Farha, the Managing Partner of BECO Capital. “With IFC as a partner, we will have the firepower to continue fueling and igniting liftoff for MENA’s disruptors, builders, and innovators.” 

To-date, BECO’s inaugural fund has supported 16 technology companies, which have collectively created more than 6,000 direct jobs and raised $750M from other investors. IFC’s investment in BECO’s first fund will help provide follow-on funding to high-potential portfolio companies.

BECO’s 2nd fund is expected to support 24 startups over 5 years. IFC’s support for the 2nd fund has helped mobilize investments from other large investors such as RIMCO (a subsidiary of Rashed Al Rashed, a Saudi conglomerate) and Bahrain Development Bank’s Al Waha Fund of Funds.

Mouayed Makhlouf, IFC Director for MENA, said, “The MENA region has a growing number of high-potential startups, but too often founders are held back by a lack of capital and strategic advice. Venture funds are a lifeline for startups, allowing them to grow their businesses, which in turn creates stable, well-paying jobs and drives innovation on a societal level.”

Startups in emerging markets are innovating in critical areas like healthtech, fintech, and e-logistics, all of which are pivotal to tackling some of the most pressing development challenges and have the potential to realize strong returns.

IFC has invested in startup incubators in places like Egypt, the West Bank, and Gaza; while also investing larger venture capital funds, including the pan-MENA Wamda and the Egypt-focused Algebra Ventures.