KSA-Based Khwarizmi Ventures Announces US$70 Million Fund Targeting GCC Technology Startups

Saudi Arabia-based venture capital firm Khwarizmi Ventures has completed the first close of its second fund with commitments exceeding SAR270 million (US$70 million), as it expands investments in technology startups across the GCC. 

The new fund will target seed and Series A startups, with investment tickets ranging between $1 million and $5 million. Khwarizmi Ventures said that it is already deploying capital and expects to announce its first investments from the fund in the coming period. 

The firm plans to invest across sectors, while continuing to focus on areas such as fintech, consumer technology, and artificial intelligence (AI). It also allocated capital for follow-on rounds to support portfolio companies as they scale. 

The launch builds on Khwarizmi Ventures’ first $70 million fund, which was launched in 2021. Since then, the firm has invested in more than 30 startups across the region, including Bahrain-born, KSA-headquartered foodtech startup Calo, UAE-based online eyewear retailer Eyewa, Saudi Arabia-based fintech Simplified Financial Solutions Company (SiFi), Saudi Arabia’s first homegrown fintech unicorn Tamara, and Saudi Arabia-based fintech HALA.

According to the firm, the first fund completed five exits and started distributing capital within its first five years. 

The announcement comes amid continued growth in Saudi Arabia’s startup investment market, with Saudi startups raising $1.7 billion through 257 deals in 2025, marking a 145 percent leap in funding value compared to the previous year, according to figures cited by the firm. 

The company linked the market’s growth to several factors, including the Kingdom’s young population, with 71 percent of Saudis under the age of 35, alongside the expansion of digital payments, which account for 85 percent of retail transactions.