Kuwait-based telecommunications firm Zain Group has set up a corporate venturing unit and struck its first deals.
Zain Ventures will invest in digital innovations in electronic services. Its parent company had already committed to venture capital funds for firms such as Colle Capital Partners, Wamda, EarlyBird Venture Partners and Middle East Venture Partners.
The unit’s first deals are Pipe the US-based developer of a digital trading platform for recurring revenues, and Swvl, a US-headquartered mobility service provider for mass transit in emerging markets.
Swvl is set to go public through a merger with women-only led special purpose acquisition company Queen’s Gambit Growth Capital in collaboration with Agility and Luxor Capital Growth.
Bader Al Kharafi, vice-chairman and CEO of Zain, said: “The establishment of Zain Ventures is another step in Zain Group’s ‘4Sight’ strategy and progression to become a full-fledged digital services company.”
Malek Hammoud, chief investment and digital transformation officer for Zain, added: “Pipe offers an incredible opportunity for capital appreciation and revenue growth and we look forward to participating in its continuing expansion as more clients are added to the platform.”
Regarding Swvl, Hammoud said: “The enormous and relatively untapped entrepreneurial talents of the region are being showcased to the startup ecosystem global community through this transaction that will see Swvl as the first $1bn-plus unicorn from the Middle East to list on Nasdaq.”
