Doha: Qatar’s tech startups are witnessing a significant growth in the value of investments raised amid growing investor confidence in the country’s startup ecosystem. Tech startup investments here grew by 254 percent from QR22m (across 24 deals) in 2020 to QR78.1m (across 19 deals) in 2021, according to the latest KPMG report on ‘Tech Startup Investments Round Up’ for Mena region.
The report added that tech startups in Qatar raised about 255 percent of their total capital between 2020 and 2021. Top five tech startup deals in the country last year include delivery services company Snoonu, which has raised $5m (QR18.2m) Series A funding by investors led by its strategic partner Qatar Development Bank (QDB), with the participation of multiple investors. Food and beverages firm Else Labs followed, with a $3m (QR10.9m) Series A funding raised by an undisclosed investor/investors.
The ‘Top 5 tech startup deals in Qatar in 2021’ list also included fintech company SkipCash, with a $1.92m (QR7m) Seed funding raised led by a group of private Qatari investors; followed by home services firm E-butler which has raised $1.5m (QR5.5m) of Pre-Series A funding by undisclosed investor/investors. Fintech firm Spendwisor completed the list with its $1m (QR3.6m) Pre-seed funding raised by investors led by Erhama Nasser IA Al Kaabi and local angel investors, according to the report.
“Qatar is experiencing substantial growth in startup investments as startups have received a total funding of QR78.1m across 19 deals during 2021. Interestingly, this year we observe an increase in average deal size to QR-4m from QR-1m in past four years. Fintech-led startups continue to dominate in the Qatari market. However, delivery services (food and beverage sector) secured the largest share in funding,” Karthik Jagadeesan, Associate Director, Advisory at KPMG Qatar said in the report.
Qatar’s fintech industry is poised for an extensive development with the expansion of local fintech companies, as well as the continuous arrival of international fintech firms to the Qatari market, as the country moves towards becoming a global fintech hub. The number of delivery companies has also significantly expanded in the country amid the COVID-19 pandemic.
In a snapshot, the KPMG report highlighted the growing momentum in Qatar’s startup ecosystem, as it grows to become an attractive destination for investments. In 2017, tech startup investments in Qatar stood at QR41m (across 26 deals), which grew to QR31m (across 21 deals) in 2018. In 2019, there were a total of 22 tech startup deals in Qatar valued at QR21m, KPMG added.
