The fintech industry in Saudi Arabia has been rapidly growing, presenting enormous potential for digital transformation and innovation. It is being driven by the same forces driving fintech worldwide, including increasing access to technology, changing consumer demands and government support. This emergence of Saudi Arabia as a leader in fintech promises to drive impressive economic growth and bolster the country’s global standing as an innovative market leader.
As Saudi Arabia strives to diversify its economy beyond oil and gas, financial technology products and services have increased significantly over the past two years. The Saudi Arabian Monetary Agency (SAMA) is actively encouraging such developments by investing in this sector on various levels – from developing local adaption programs such as ‘Pay25’ to create more jobs in the banking sector, to outlining regulatory frameworks for digital banking platforms like Al Rajhi Bank’s Tamweel platform.
SAMA has also made substantial efforts towards increasing fintech regulatory coordination by forming dedicated committees between it and other governmental regimes including Special Databases Authority (SDA) which enables banks to access customer data for account scanning for digital banking transactions. This allows for safer transactions with better visibility into where customer funds are targeted throughout a transaction cycle. SAMA has also supported startup companies looking to bring financial technology solutions from outside of the Kingdom into their local markets via initiatives such as its “White List Program” which provides exempt startups with a one-year period exemption from taxes along with fast-track licensing procedures..
These steps show that while traditional bricks-and-mortar banks still hold power within the region, there is more openness towards disruptive new technologies showing promise within Fintech space than ever in Saudi Arabia today.
Saudi fintech firm FOODICS raises $170 million from investors
FOODICS, a Saudi fintech firm, has recently raised $170 million from investors, signalling a new wave of interest in the Saudi fintech scene. This news has garnered a lot of attention in the tech sector, with many people wondering what this investment could mean for the future of Saudi fintech.
This article will provide an overview of FOODICS and discuss the implications of this investment.
What is FOODICS?
FOODICS is a cutting edge cloud-based restaurant management platform that provides a complete end-to-end solution for restaurateurs in the Middle East and North Africa (MENA) region. Based in Saudi Arabia, FOODICS offers a suite of products that include POS hardware, cloud-based SaaS software, an integrated mobile app and payments processing technology. It also allows customers to manage multiple outlet operations from any location and provides an analytics dashboard to view and analyse hosted data.
FOODICS was founded in 2013 by a dynamic team of entrepreneurs to bring modern retail technologies to convenience stores and restaurants. Over the years, FOODICS has evolved into the leading restaurant management platform with over 20,000 outlets served in Saudi Arabia alone. In addition, the company’s rapid expansion across MENA has seen the platform deployed across Kuwait, United Arab Emirates (UAE), Bahrain, Oman Qatar and Morocco among other nations.
As we move into 2020, FOODICS is among fintech startups leading innovation within the Saudi economy, emphasising technological progress and economic growth opportunities for aspiring entrepreneurs. Moreover, the implementation of such platforms enables wholesale merchants as well as small businesses to access more financial resources than ever before – bringing forth foreign capital investment opportunities for those daring enough to take on the challenge of tapping into these new markets powered by disruptive technologies such as FOODICS’ integrated payment processing solutions alongside its comprehensive SaaS software platform.
What services does FOODICS offer?
FOODICS is an Saudi Arabian restaurant technology company that offers a wide range of services to the Saudi Arabian market. FOODICS’s solutions can power many food businesses, from local mom-and-pop operations to large scale chains. They provide innovative services for point of sale (POS) systems, accounting software, delivery tracking and customer loyalty programs, all integrated into one platform, resulting in more efficient business operations.
To enhance customers’ experience and strengthen relationships with them, FOODICS helps restaurants create a loyalty program by providing cloud-based CRM tools, making it easier for merchants to understand their customers better. Furthermore, their end-to-end POS system offers specialised features such as efficient mobile ordering, delivery tracking, and self checkout features. Additionally, advanced analytics tools are included in the system to help businesses identify growth opportunities or areas needing improvement within their business model or operations.
FOODICS is not just focused on helping small and medium sized food businesses – they also provide enterprise grade solutions that encompass consulting services as well as training and support for larger restaurant franchises. Alongside this offering comes assistance complying with government regulations regarding taxes and cashless payments compliance, ensuring payments made through the platform are always made securely within legal guidelines.
In summary, FOODICS is at the forefront of utilising technology to empower restaurant owners from all over Saudi Arabia with innovative solutions that improve operational efficiency. At the same time strengthen customer satisfaction rates – ultimately leading towards increased profitability for clients utilising this service.
Impact of FOODICS’ Fundraising
FOODICS, a Saudi-based fintech firm, recently raised $170 million from investors, making it one of the biggest fundraisings for a fintech firm in the Middle East. Such a large fundraising has undeniable implications for the Saudi fintech scene.
This article will discuss what this development means for the Saudi fintech ecosystem.
What does this mean for the Saudi fintech scene?
The recent fundraising by FOODICS marks a significant moment for the Saudi Arabian fintech scene. With the newly raised funds, FOODICS can continue to provide innovative mobile and cloud solutions for businesses, such as invoice management, website and mobile app development, CRM building and even loyalty programs.
This investment brings more attention to the Saudi fintech space, which has already seen many startups like STC Pay and PayTabs gain high traction over the past few years. The potential growth of this scene could lead to an expansion of financial choices available in Saudi Arabia. It sounds like an ambitious goal but can be made possible with further investments in promising startups like FOODICS.
The entrance of medium-sized investors further signifies that mature companies such as FOODICS are ready to take on business challenges associated with emerging technologies and create a positive impact on their country’s economy. The increased funding could also assist companies in creating more jobs and establishing a stronger presence within their local networks or upscaling into international markets.
Investors have taken notice of the potential for economic progress stirred by well-backed startups, making it likely that future investments into promising ventures will be made at larger scales over time. This means the region can look forward to a strong surge of technological solutions created with social responsibility in mind, such as providing essential banking services to people without access or creating products with sustainability at its core focus. In addition to direct investments from venture capitalists or private equity firms, public sector trade funds have also been seen entering this race – so there is potential for more change ahead!
What other opportunities could be created?
The impact of FOODICS’ fundraising on the Saudi Fintech scene is multi-faceted. First, FOODICS has opened the door for other interested Saudis who want to take their businesses to the next level. The funding proves that brave entrepreneurs can triumph, even in a seemingly difficult environment, with enough persistence and hard work.
FOODICS’ success could create numerous opportunities in the Saudi Fintech scene, providing ample inspiration for more entrepreneurs to pursue their dreams without being hindered by certain societal structures and limits. Apart from this, FOODICS could also create further interest from venture capitalists and investors looking to invest further into startups in Saudi Arabia – this means an array of career opportunities for people in marketing, engineers, tech developers etc within various start-ups coming up.
Moreover, FOODICS’ success story could set events in motion, leading to other advantages within the technology sector like access to more funding sources, a larger talent pool for start-ups and foreign collaborations. This will spur growth within companies and individuals, allowing them to open up regarding their skill sets or use cases they weren’t aware of before – leading to more innovative solutions that would appeal on a global scale.
What challenges could arise?
When FOODICS successfully began fundraising around $14 million in April 2020, it signified a potentially huge shift in the Saudi startup and fintech ecosystem. However, the implications of such success may not just be all positives. With FOODICS’ success, more scrutiny and pressure could be applied to other Saudi fintech startups.
The fintech sector has seen an influx of innovation and investment, especially from countries such as Saudi Arabia. FOODICS’ enormous raise places them in a favourable position against rivals and sets a precedent for forthcoming projects that wish to follow suit. This could mean stiff competition for other Saudi startups bidding for funds due to increased expectations on new startups within the sector. However, from a financial standpoint, competitors might be overshadowed when investors wish for repeat success stories or opt for those with greater ‘brand-value’.
Another issue arising from such higher expectations could affect an overwhelming ‘hype-cycle’ around new projects and their prospects of meeting these high standards – particularly when large sums of money are involved. This further affects companies when they realise they cannot meet these expectations. Not only is dejected ambition detrimental psychologically and financially, it could lead to investor reluctance or disinclination towards investing in future projects due to potential risks that may have been overlooked in the past.
In summary, the sweeping changes by FOODICS has significantly revolutionised the Saudi fintech sector by triggering reform. However, with any large-scale feat comes some overlap onto other parts of the industry – both negatively and positively.
