Middle East Startups Double Fundraising to Defy Broad Slowdown
About $1.35 billion in VC funding was funneled to companies in the Middle East from January through June, led by Saudi Arabia and the United Arab Emirates, according to data platform Magnitt.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
30 minutes ago
- Yahoo
With Military Drones in Hot Demand, Cantor's Got 2 Stocks You'll Want to Own
War has always been a driver of human invention, and the latest wars in Ukraine and the Middle East are no exception. Both conflicts have been dragging on – the Middle East war for nearly two years, the Ukraine war for three and a half now – and some trends are growing clear. Prime among these: the increasing importance of drone aircraft and high-end air defense systems. Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Ukraine's strike against the Russian strategic bomber force demonstrated the attack capabilities of military drones, while Israel's 12-day campaign against Iran made clear the importance of air defenses in protecting the home front. Defense sector expert Colin Canfield, from Cantor, has been following the developments in the military field, and sees drone technology as a key point for investors to follow. 'We think investor sentiment has materially improved from 1Q, thanks to pragmatism around U.S. defense budget growth, the sustainability of Ukrainian security funding, and likelihood of continued deterioration of global security architectures. However, we think markets are still under-appreciating both the magnitude and the sustainability of growth for Defense Tech, especially in faster-growing areas like drones, air defense, munitions, and directed energy. We admit valuations are stretched, but we also think shares can quickly approach Space-like valuations, as companies benefit from both a robust catalyst cycle and cash flow environment,' Canfield opined. Against this backdrop, Canfield has singled out two drone-tech stocks that could be well-positioned for gains. But is he alone in his optimism? To find out if other analysts share his view, we turned to the TipRanks database. Let's dive in. Kratos Defense (KTOS) First up is Kratos Defense, a San Diego-based defense contractor that specializes in transformative technologies, platforms, and systems, particularly those applied to drone and aerial target vehicles. The company's main customer base resides in the US national security sector, where the company has important contracts with the US Air Force and Navy, as well as with the US Intelligence Community and the Missile Defense Agency. Kratos has multiple programs under development, including various drones, satellites, and microwave electronics – but the company's leading program, generating the most headlines and hype, is the XQ-58 Valkyrie. The XQ-58 is a stealthy unmanned aerial vehicle being developed under the Air Force's Low-Cost Attritable Strike Demonstrator program. The aircraft has been flying since 2019, is anticipated to enter service in the coming years, and has potential to change the way that air warfare is conducted. In short, the XQ-58 was conceived as the embodiment of the 'loyal wingman' concept, a dedicated, combat-capable drone controlled, or overseen, by a manned fighter aircraft. The XQ-58 can have several roles, ranging from advanced reconnaissance to penetrating air defenses and drawing fire, to delivering air-to-air and air-to-ground ordnance. In addition to its 'loyal wingman' design concept, the XQ-58 is capable of autonomous operations, using a combination of stealth, maneuverability, and high subsonic speed to enhance its survivability. It's a flexible airframe, with applications across multiple Defense Department missions. We should note that, while the XQ-58 may be Kratos's leading program, the company has numerous other projects ongoing, and is actively moving to take on new ones. On the latter, the company announced this past June 11 that it had been awarded a $25 million task order from the US Space Force, to provide support ground system capabilities for the Space Force's Evolved Strategic Satellite Communications (ESS) program. This is a vital satellite communications capability of the nation's strategic nuclear command and control. Turning to the financial results, we see that Kratos reported 1Q25 revenues of $302.6 million, beating the forecast by $10 million and growing 9% year-over-year. The company's earnings in the quarter came to 12 cents per share by non-GAAP measures, or 3 cents per share ahead of expectations. Kratos finished Q1 with $263.7 million in cash and cash equivalents on hand, and the company's consolidated backlog, as of March 30, came to $1.5 billion. This stock was named as a Top Pick by analyst Canfield. In his coverage for Cantor, Canfield noted the XQ-58 as a key driver for Kratos's near-term success, writing, 'While we've seen significant run-ups in share price ahead of X-58's expected entry into services (the stock is up 96% year-to-date), we think this time market sentiment is under-appreciating the upside and sustainability of KTOS' growth algorithm, especially as we consider Group 4-5 drones as not a 'winner take all' as implied by CCA, but part of a series of service-branch solutions where each drone fits each mission. In this setup, we especially like the X-58 as U.S. force structure decisions move from survivable to attrition-derived outcomes.' Looking forward, Canfield believes that Kratos holds a sound position to support further growth, with a solid backlog and a strong proposal pipeline. He says of the company's prospects, 'We also think KTOS has best-in-class potential for assuming a greater role in the microwave electronics and munitions markets, thanks to their work around higher-value systems and classified programs… Taken together, we think KTOS is still early innings in its growth trajectory after years of careful investment in drones, and electronics position itself well to take on more significant Prime-like capabilities.' In all, the Cantor analyst rates KTOS as Overweight (i.e., Buy), and he gives it a $60 price target to suggest a one-year gain of 16%. (To watch Canfield's track record, click here) KTOS shares have a Strong Buy consensus rating from the Street, based on 10 reviews that include 8 Buys and 2 Holds. However, the stock is priced at $51.71 and its average target price of $49.57 implies that it will shed 4% in the next 12 months. Given this discrepancy, watch out for price target hikes or rating downgrades shortly. (See KTOS stock forecast) AIRO Group Holdings (AIRO) The second stock we'll look at, AIRO, is new to the public markets, having started trading on Wall Street through an IPO held just last month. The shares represent AIRO Group Holdings, an aerospace and defense company with four operating divisions, focused on drones and other uncrewed air systems; electric and hybrid vertical lifting aircraft; training for both commercial and military aviation; and avionics and electronics systems. The company got its start in urban air mobility but has quickly learned to adapt its technology to the growing demands of the defense industry. AIRO's leading product is its RQ-35 Heidrun drone, which is produced under license in Denmark for the Danish military. The RQ-35 is a battle-proven, man-portable system, designed to be carried by a single user with a specialized backpack, although it is frequently used by small ground crews. The system does not require access to GPS or related navigation systems for successful deployment, can be controlled from a tablet device, and boasts best-in-class flight time and operational range. Also notable among AIRO's programs is its development of EVTOL systems. These are electric vertical take-off and landing craft, designed to carry a small number of passengers and/or gear over ranges of 20 to 100 miles while operating solely on battery power. They offer advantages in flexibility of basing and deployment, as well as noise reduction. AIRO is developing the technology for urban air taxi and cargo services – but also for emergency response missions. The company is developing EVTOL aircraft based on its patented slowed rotor compound (SRC) technology, which is proven to reduce drag and vibration for a quieter, more efficient flight. As noted, AIRO went public last month through an IPO. The company priced the offering on June 12, with 6 million shares made available at $10 each. When the IPO closed on June 16, 6.9 million shares had been sold, and AIRO had raised $69 million in gross proceeds. Checking in again with Canfield, and the Cantor view, we find the analyst upbeat based mainly on AIRO's drone and EVTOL technologies. He says of the company, 'We think of AIRO's equity story as a case of medium-term drone profits being invested in longer-term EVTOL prospects. Starting with drone dynamics, we think continued RQ-35 orders from NATO partners, DoD Blue UAS certification, and accelerating non-NATO demand can combine to support a robust multi-year growth trajectory. Longer term, we also think RQ-35's mission survivability, alt-PNT integration, and ISR capabilities can provide significant land-and-expand opportunities with NATO + other allies. Turning to EVTOL, we think investor sentiment may continue to be mixed, but we think of AIRO investment as an easy risk-adjusted bet by the company to unlock significant value.' Canfield sums it up by noting the stock's prospects, based on its exposure to the defense sector: 'Taken together, we think shares will track to defense sentiment near term as investors parse through organizations best-situated to execute, with longer-term sentiment progression driven by drone orders, air mobility progress, and avionics/training earnings growth.' For the Cantor analyst, this all adds up to another Overweight (i.e., Buy) rating. He backs that up with a $35 price target, showing his confidence in a one-year gain for the stock of 21.5%. AIRO's Strong Buy consensus rating is based on a unanimous 3 Buys while this new stock's $30.67 average target implies shares have upside of 6.5% in them for the next year. (See AIRO stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment. Disclaimer & DisclosureReport an Issue Sign in to access your portfolio
Yahoo
43 minutes ago
- Yahoo
QIIB rolls out Click to Pay feature for Visa cardholders
Qatar International Islamic Bank (QIIB) has partnered with Visa to introduce the Click to Pay feature for its Visa cardholders. The feature aims to simplify the online checkout process by allowing users to authenticate purchases with unique identifiers such as an email address or phone number. The Click to Pay feature, once users register, eliminates the requirement for manual entry of card details or the generation of one-time passcodes. QIIB head of business development sector Khaled Abdul Rahman Al-Shaibei said: 'Being among the first few issuer banks in the GCC to launch this feature, we are focused on delivering secure, seamless payment solutions for our customers. 'Our ongoing partnership with Visa enables us to integrate state-of-the-art technologies that enhance convenience while upholding the highest standards of security.' It is integrated with Visa's Payment Passkey Service, which employs biometric authentication methods including fingerprint and facial recognition, based on FIDO authentication standards. Cardholders can register for the Click to Pay service through the QIIB mobile banking application. The technology behind Click to Pay replaces sensitive payment information with encrypted tokens. Visa Qatar and Kuwait vice president and general manager Shashank Singh stated: 'We are delighted to support QIIB in bringing Click to Pay to its customers, ensuring a quicker and more secure digital checkout experience. 'This collaboration with QIIB aligns perfectly with our mission to enhance security and improve customer experiences, in line with the digital commerce objectives of the Qatar Government.' Earlier this month, an embedded finance company Weavr partnered with Visa to provide embedded Visa cards for HR technology platforms. "QIIB rolls out Click to Pay feature for Visa cardholders " was originally created and published by Electronic Payments International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
an hour ago
- Yahoo
AI-powered CXM platform Lucidya raises $30m
Lucidya, a software as a service (SaaS) provider specialising in AI-driven customer experience management (CXM), has completed a $30m Series B funding round. According to the company, this is the largest AI investment in the Middle East and North Africa (MENA) region to date. The funding round was led by Saudi venture capital firm Impact46. Aramco's investment arm Wa'ed Ventures, Takamol Ventures, and SparkLabs joined as new investors, while previous backers Rua Growth Fund and ARG also participated. Lucidya was established in 2016 and has been supported by venture capital since 2019. It currently operates in 11 countries, serving industries such as telecommunications, BFSI, hospitality, healthcare, and the public sector. The platform's core feature is an Arabic-language AI engine boasting more than 92% accuracy, providing insights and automating customer interactions. Lucidya aims to capture a portion of the MENA CRM/CX software market, which is projected to reach $9bn by 2030. Lucidya founder and CEO Abdullah Asiri said: 'We bet on AI back in 2016, long before it became a boardroom buzzword. That early conviction is now paying off as we become the trusted, regional AI partner for CX. 'We chose Impact46 to lead this round because they are one of the most proven VCs, with two IPOs in their portfolio. They are the perfect partner to scale Lucidya to a global AI force.' The company plans to use the new investment to expand its AI Agent offering, focusing on automating and personalising customer interactions in support, marketing, sales, and CX, while ensuring compliance with regulations such as PDPL. Impact46 partner Basmah Alsinaidi commented, 'Lucidya is exactly the kind of company we look to back—founders solving real regional challenges with defensible tech and bold ambition. Their mastery of Arabic-first AI and traction with top-tier enterprises mark them as a future category leader.' "AI-powered CXM platform Lucidya raises $30m" was originally created and published by Verdict, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
