UAE-Based VentureSouq Closes Second Fintech Fund With Sovereign And Institutional Backers

UAE-based venture capital firm VentureSouq has closed its second fintech fund (FinTech Fund II), after securing backing from a roster of sovereign and institutional investors across the region. 

Limited partners include Jada Fund of Funds, a Public Investment Fund (PIF)-owned company; Saudi Venture Capital Company (SVC); Saudi Awwal Bank (SAB); the Abu Dhabi-based sovereign wealth fund, Mubadala Investment Company; the Saudi HR solutions and services provider, Takamol Holding; the South Korea-based video game company, Krafton; and the Jordanian government-backed investment fund supporting early-stage firms, the Innovative Startups and SMEs Fund (ISSF). 

The new fund will target early-stage fintech and software-as-a-service (SaaS) companies across the MENA region, with a focus on payments infrastructure, alternative credit, digital banking, proptech, insurtech, and personal financial management.  It follows the FinTech Fund I that VentureSouq had launched in November 2021, which supported more than 40 early-stage companies across the UAE, Saudi Arabia, Egypt, Jordan, and Pakistan, many of which have since raised follow-on funding and expanded into new markets. 

In an interview with Inc. Arabia, Suneel Gokhale, General Partner at VentureSouq, said the new fund builds on lessons from the firm’s earlier vehicle while bringing in a more strategically aligned investor base. “From day one, we’ve been committed to supporting exceptional fintech founders who are tackling real structural challenges in the MENA region—whether it’s digital payments, access to credit or challenges related to buying property. This time, we’ve brought on a strong base of limited partners who not only provide capital, but also strategic value—ranging from regional sovereign wealth funds (SWFs) and financial institutions with deep fintech expertise. Coupled with the lessons we’ve learned from deploying Fintech Fund I, we now have a sharper playbook on how to help founders scale faster, navigate regulatory complexity, and expand across markets. We believe this combination will allow us to amplify our impact on the ecosystem and back more category-defining companies across the MENA.” 

VentureSouq, which has invested in over 200 companies globally with about US$250 million in assets under management, counts among its portfolio the UAE-born, KSA-based buy now, pay later (BNPL) platform, Tabby; Dubai digital real estate and mortgage marketplace, Huspy; the Algeria-founded super app offering ride-hailing, delivery, and financial services, Yassir; Saudi e-commerce platform for building online stores, Salla; and the Saudi artificial intelligence (AI) and machine learning company focused on risk and compliance solutions, Mozn. 

As fintech increasingly overlaps with sectors such as proptech and insurtech, Gokhale noted that several opportunities remain untapped. “We’re seeing encouraging innovation in payments, BNPL, and digital banking, but there are still several ‘white spaces,'" he said. "For example, SME-focused solutions remain underdeveloped, despite small businesses being the backbone of MENA’s economies. Insurtech, embedded finance, and infrastructure layers like open banking and credit scoring are also still in their early innings. As fintech continues to converge with other verticals—proptech, healthtech, and e-commerce—we expect founders to seize these adjacencies. But there’s still a lot of room for deeper infrastructure plays that enable scale.” 

Looking ahead, Gokhale is bullish on the region’s ability to produce globally competitive fintech players. “By the time Fund II is fully deployed, I believe we’ll see MENA fintech producing not just regional leaders, but global contenders," he said. "Today, most fintechs here are focused on solving local or regional pain points. Over the next several years, some of these solutions will mature to the point where they can scale internationally, exporting MENA-born innovation abroad. I also expect regulatory frameworks to evolve significantly. Regulators across the GCC and North Africa are already taking bold steps with sandboxes and other licenses imperative to the expansion of fintech across the region. By the end of this fund cycle, I think that the MENA will be recognized globally as one of the most dynamic fintech regions, with a much more robust exit and initial public offering (IPO) pipeline.” 

For new founders hoping to join that wave, Gokhale advised them to stay focused and develop core expertise. “Build for scalability from day one, but stay laser-focused on solving one core problem really well," he advised. "Too often, founders try to do too much too early, or they underestimate how complex regulatory, licensing, and compliance requirements can be across markets. The companies that succeed are the ones that combine relentless customer focus with operational discipline. Start with a real pain point, design a product that users truly can’t live without, and then scale thoughtfully across borders. Surround yourself with advisors and partners who understand both the regulatory environment and the nuances of local markets—that’s where many early founders stumble.” 

Pictured in the lead image is the VentureSouq team. Image courtesy VentureSouq.