Dubai’s embedded finance startup Comfi raises USD 65 mn to expand into Saudi

Dubai-based B2B embedded finance platform Comfi closed a USD 65 mn pre-Series A round including both equity and debt to help it grow its regional footprint and expand “aggressively” into Saudi Arabia by next year, co-founder and CEO Sanjar Samiev tells EnterpriseAM.

Who’s on board? The equity portion was led by Iliad Partners, with Yango Ventures and Raw Ventures making their first-ever regional investments, according to a statement (pdf). The round also includes a credit facility from US-based private credit provider Partners for Growth and a mezzanine facility from Shorooq Partners.

This round “gives us 18 months of operational runway to grow without the pressure of fundraising in an even more uncertain environment,” Samiev says. It’s good news for Comfi given fewer investors are likely to write tickets amid headwinds from the war.

Why it matters now: Well, there’s a war on, for starters? It’s also a time when the SME clients that Comfi serves are more likely to see distress: Fallout from the conflict sees SME margins more squeezed than ever, input costs are skyrocketing — from gasoline to raw materials — and supply chain disruptions are straining plenty of companies.

“Demand has never been higher,” Samiev says. “When margins compress and costs rise unpredictably, the one lever SMEs can control is timing — when they pay and when they get paid,” he adds.

Across the UAE, freezones, lenders, and government entities have rolled out support packages for the sector in recent weeks. From Emirates NBD to Dubai South and startups like Qashio, help for small businesses has included deferred fees and waived penalties.

Also in Egypt: Cairo-based adtech startup Amzolutesold 100% to US-based InvenTel in a deal that will see founder Ahmed El Hefny leave the business. The company runs Amazon ads for 850+ brands across eight countries at USD 92 mn in client sales. It’s the third major US acquisition of a Cairo digital media operator after Aleph’s 86% stake in Connect Adsfrom A15 and Converted’s purchase of Mitcha — Cairo as a high-margin services hub for global digital media is becoming a thing.

Egyptian tech unicorn Fawry’s microfinance arm secured EGP 250 mn (c. USD 5 mn) from the European Bank for Reconstruction and Development (EBRD) for on-lending to entrepreneurs, with a focus on small businesses led or majority-owned by founders under 35 and those in underserved rural areas, according to a press release (pdf). The facility aims to help the economy absorb the growing number of young people entering the labor market.

Why it matters: Lending to youth-led startups in an inflationary environment is risky for local institutions. By attaching a 10% first-loss risk cover and an EU-backed liquidity incentive for the borrower, the EBRD makes it easier for Fawry’s micro- and small-business finance arm to take on new clients.

Sharjah launches another wartime buffer for startups: Sharjah Entrepreneurship Center (Sheraa) launched a AED 5 mn Entrepreneurs Resilience Fund offering non-dilutive, non-repayable grants and fast-tracked support for Sharjah-based startups and SMEs, according to a press release. The fund targets businesses in sectors like manufacturing, food security, and healthcare, while recipients will also receive mentorship, market visibility, and operational support.