Saudi Arabian food technology start-up Nomu Group has raised $5 million in a seed-funding round to back its expansion into new markets in the Middle East and North Africa and investments in technology.
The Riyadh-based start-up secured funding from investors including DIV Capital, Shurfah, Core Vision, Purity for Information Technology, it said on Tuesday. They were joined by family businesses in the kingdom, such as Altoukhi and Bakr, along with angel investors.
The FoodTech supply chain company will use the capital to grow its business-to-business services to hotel, restaurant and cafe customers, said Shehab Mokhtar, co-founder and chief executive of Nomu Group.
It will also invest in new technology and expand its business into new markets in the Mena region, he said.
The start-up, which operates in Egypt, Tunisia and Morocco, plans to expand to 50 cities in the Mena region by 2025, it said.
It also plans to develop a software-as-a-service solution and an AI assistant procurement officer chatbot.
“Nomu is committed to revolutionising the FoodTech supply chain, providing greater convenience and efficiency for businesses in the Mena region,” Mr Mokhtar said.
This comes amid Saudi Arabia's wider ambitions to position itself as a hub for emerging technology companies as part of its Vision 2030 programme to diversify its economy away from oil, create jobs and attract high-skilled talent.
Overall, start-ups in Saudi Arabia recorded a 72 per cent annual increase in venture capital funding to $987 million through 144 deals in 2022, start-up data platform Magnitt said.
The kingdom was the second-most funded country after the UAE in the Mena region last year. It also accounted for 31 per cent of total capital invested in the region.
FinTech was the industry of choice for investors in terms of the number of deals as well as total funding in Saudi Arabia last year.
It accounted for 24 per cent of funding with $239 million raised across 28 deals, Magnitt said.
Food and beverage was the second-most funded industry in the kingdom, with start-ups raising $187 million.
Nomu Group was established in 2022 by Mr Mokhtar, Salman Attieh, Yassir El Ismaili and Ahmed Eldemerdash.
The company's platform streamlines inventory sourcing, procurement, financing, storage and delivery for hotel, restaurant and cafe businesses. It also offers an app for families to purchase groceries.
Nomu Group said its holding structure in Abu Dhabi Global Market, the UAE capital's financial centre, allows it to develop its operations further and expand its footprint.
The start-up plans to cover Pakistan and key sub-Saharan countries in the “near future”, it said, without providing further details.
Nomu, which has struck partnerships with industry players such as Savola and Procter & Gamble, said its business has recorded 10 times revenue growth in 12 months.
