GrowthLabs takes over Startup Gate via share-swap

Startup software provider GrowthLabs has fully acquired 100% of entrepreneurial matchmaking platform Startup Gate in a transaction nearing EGP 35 mn, according to a joint statement (pdf). The noncash agreement features an equity-swap component alongside performance-tied earn-outs, GrowthLabs CEO Islam Mohamed tells EnterpriseAM. Angel investment syndicate M-Empire — which seed-funded Startup Gate and orchestrated the acquisition — will now hold an equity stake in GrowthLabs.

The rationale: The move will see GrowthLabs restructure into a holding company with two core products: its existing incubator management software, Catalyst OS, and the newly acquired Startup Gate. Through this integration, GrowthLabs aims to create the region’s first unified digital infrastructure for startups, connecting founders with a massive pipeline of investors, service providers, and mentors, Mohamed tells us. “Rebuilding a similar layer internally would have required considerable time and resources,” he says.

Pricing in future upside: Startup Gate — originally initiated by venture studio Aria Ventures before spinning off with M-Empire’s backing — brings significant strategic value beyond its age or current revenue, Mohamed tells us. Following the acquisition, Startup Gate founder Emmy Tawfik will step into the role of COO at GrowthLabs Holding, while Startup Gate will continue operating under its current name.

What’s next: The acquisition is part of a broader expansion plan that will see GrowthLabs break into five new geographies across the GCC and Africa by the end of this year. The software provider will also use the merged data to roll out seven corporate innovation programs.