Saudi Businesses Soar: Artificial Intelligence and Food Technology Deals Fuel Ecosystem's Swift Development
Saudi Arabia's Startup Ecosystem Booms in 2025
Saudi Arabia's startup ecosystem is thriving in 2025, with significant growth and increased investment in technology sectors such as AI, food tech, logistics, and sports. The Kingdom leads the MENA region in startup funding, having raised $1.34 billion in the first half of the year, a 342% increase year-over-year.
In the AI sector, Flex League, a Saudi sports-tech company focused on padel and tennis, has raised a seed round led by the Professional Tennis Academy and PAD-L Group. Meanwhile, Sawt, a Saudi startup focused on Arabic-native voice AI systems, has closed a $1 million pre-seed round led by T2 and STV. Sawt's co-founder and CEO, Abdulmalik Al-Saeed, is proud of building Arabic voice technology from the ground up in Saudi Arabia.
The food tech sector is also seeing notable activity. Calo, a Saudi food tech startup, has secured a $39 million series B extension, bringing its total series B funding to $64 million. Calo delivered more than 10 million meals in 2024 and reports high-growth, nine-figure annualized revenue. Kamco Invest has acquired a stake in Foodics, a fast-growing restaurant technology and payments platform based in Saudi Arabia, which serves over 33,000 restaurants with an annual gross merchandise value of over $10 billion.
Logistics is another area of focus, with Olivery, a B2B Software-as-a-Service company, having raised seed funding to expand regionally and roll out AI-driven features including predictive routing, automated data entry, and proactive customer support.
The sports sector is also experiencing growth, with OmniOps having launched Bunyan, the Kingdom's first sovereign Inference-as-a-Service platform, with a focus on data sovereignty and enterprise-grade compliance. Bunyan delivers unprecedented performance improvements, including a doubling of inference speed, over 50 percent reduction in energy use, and at least 40 percent lower latency.
Saudi Arabia's startup scene is characterized by substantial venture capital inflows, increased foreign startup participation, and a growing ecosystem supported by national funds like STV, Wa’ed Ventures, Raed Ventures, and the Public Investment Fund. This momentum spans AI, fintech, food tech, logistics, and sports technology sectors, positioning the Kingdom as the top MENA innovation hub with record-breaking funding and deal flow in 2025.
In addition, Mataa, a Libya-based e-commerce platform, has completed its first seed investment round to strengthen its logistics network, expand warehouse capacity, and onboard new suppliers and product categories. Mataa supports merchants in reaching over 6 million internet users and offers Facebook integration for easier product listing and reduced advertising costs. The platform is looking to recruit experienced regional talent to support its long-term strategy.
Calo is planning for an IPO in Saudi Arabia, further demonstrating the maturity and growth of the Kingdom's startup ecosystem. Ibrahim Shuwehdi, founder and CEO of Mataa, sees the recent investment rounds as a signal to the wider ecosystem to encourage more venture investment in Libyan startups and SMEs.
With government-backed initiatives aligned with Saudi Vision 2030, the future looks bright for Saudi Arabia's startup ecosystem. The influx of venture capital, foreign startups, and local talent is expected to continue driving innovation and growth in the years to come.
- The business environment in Saudi Arabia's startup ecosystem is flourishing, with spectacular growth in the technology sector, particularly in AI, food tech, logistics, and sports.
- Flex League, a Saudi sports-tech company, has received funding for its padel and tennis focus, while Sawt, another Saudi startup, raised funds for Arabic-native voice AI systems.
- Calo, a food tech startup, secured a significant amount of funding, reaching over $64 million in series B funding, delivering millions of meals, and reporting high-growth revenue.
- Kamco Invest has acquired a stake in Foodics, a rapidly growing restaurant technology and payments platform in Saudi Arabia, serving thousands of restaurants.
- Olivery, a B2B Software-as-a-Service company, received seed funding to expand regionally and implement AI-driven logistics features.
- OmniOps launched Bunyan, the Kingdom's first sovereign Inference-as-a-Service platform, focusing on data sovereignty and enterprise-grade compliance.
- The startup scene in Saudi Arabia is fortified by substantial venture capital inflows, increased foreign startup participation, and the support of national funds like STV, Wa’ed Ventures, Raed Ventures, and the Public Investment Fund.
- Mataa, a Libyan e-commerce platform, completed its seed investment round to boost its logistics network, expand warehouse capacity, and onboard new suppliers, with plans to recruit regional talent and go public on Saudi Arabia's stock exchange.
