Logo of IMPACT46
IMPACT46 announced today, Feb. 7, launching its SAR 500 million fund to invest in tech startups across Saudi Arabia and the MENA region.
This is the third and largest fund by IMPACT46. Through its funds, IMPACT46 aims to localize innovative technologies to support local innovative solutions that contribute to developing national economy and diversifying the Kingdom’s income sources, in line with Saudi Vision 2030.
The new fund aims to invest in tech startups in various fields, mainly fintech, e-commerce, and software services. It will also focus on investment in the Saudi startups, along with other promising startups across the MENA region.
Abdulaziz Alomran, CEO of IMPACT46, said the fund will continue to support entrepreneurs showing interest in the Kingdom and MENA through providing venture capital.
There are promising opportunities to build businesses that develop innovative solutions to offer added value, contribute to the national economic development and diversify the Kingdom’s income sources, Alomran stressed. He added that the strong appetite for investment in IMPACT46 funds reflects investor confidence in the fund’s choice.
The newly-established fund builds on the success of the previous series of funds, IMPACT46 said in a statement. The company added that the first fund, Seed, which was launched in 2019, recorded 3.6x its investment value. The second fund, Growth, which was established in 2021, generated 1.9x its investment size.
The company launched several funds, through which it invested in 33 tech startups in early and growth stages. Saudi startups hold the lion’s share of these funds. The total value of assets under management (AUMs) stood at SAR 4.9 billion in 2021.
IMPACT46 cited its investment in Jahez in 2020, when it acquired 40% of its shares. Jahez was listed on the Saudi market in December 2021 as the first Saudi tech startup, from which investors generated proceeds 22x the original investment amount, based on the listing price.