Arzan VC launches Revenya Capital to back MENA startups

Arzan Venture Capital (Arzan VC) has announced a strategic partnership with Ahmad Takatkah to launch Revenya Capital, an innovative revenue-based financing (RBF) firm dedicated to empowering tech startups in the MENA region. With an initial seed investment of $2 million from Arzan VC and Arzan Financial Group (AFG), along with a credit facility from AFG’s extensive network, Revenya Capital aims to address the increasing demand for non-dilutive financing options in the area.

Arzan VC launches Revenya Capital to back MENA startups

Revenya Capital plans to collaborate closely with venture capital firms to offer their portfolio companies short-term, non-dilutive financing for diverse needs such as marketing, inventory, events, equipment, and seasonal requirements. This partnership will enable VCs to support their startups in securing flexible funding solutions without diluting equity, allowing them to maintain their focus on growth. Revenue-based financing is rapidly emerging as a preferred funding model for startups seeking non-dilutive capital to fuel their growth while preserving equity. Utilizing advanced AI and machine learning technologies, Revenya Capital can provide swift, data-driven financing decisions, establishing itself as a tech-driven partner for startups. The firm targets high-growth startups with predictable revenues, offering short-term loans ranging from $50,000 to $500,000, with repayment terms of 3 to 9 months and fixed monthly fees of 1.5% to 2.5%. Repayment rates will range from 5% to 20% of monthly revenue. Ahmad Takatkah, co-founder and managing partner of Revenya Capital, stated, “We believe that RBF is the perfect complement to equity investments in MENA, and the timing is right. The demand for non-dilutive financing is surging, yet only four companies currently provide RBF solutions in the region—Erad, Capifly, FlapKap, and Flow48. This is far from sufficient to meet the needs of the rapidly growing startup ecosystem in MENA. We look forward to collaborating with these firms to enhance the availability of RBF options.”

"The launch is timely"

Hasan Zainal, Founder and Managing Partner of Arzan VC, remarked, “The launch of Revenya Capital is timely, as there is a significant gap in the market for flexible financing solutions tailored to tech startups. Ahmad Takatkah has been a trusted member of our team for nearly a decade, and we are confident that under his leadership and with the support of Arzan Financial Group, Revenya Capital will bridge the existing market gap and drive innovation in the region.” By leveraging AFG’s extensive network and financial expertise, Revenya Capital is set to become a leading force in the MENA startup financing landscape, focusing not only on providing capital but also on forming strategic partnerships with startups and VCs to foster growth and success.