Saudi Arabia’s Edafa Venture Capital has announced an ambitious plan to invest $30 million in Egyptian startups over the next three years. The firm, which has already acquired stakes in 21 Egyptian companies, aims to expand its footprint in one of the Middle East’s most dynamic startup ecosystems. This strategic push comes amid continued appetite from Gulf-based investors for high-potential startups in Egypt.

Edafa recently acquired a strategic stake in Taskedin, an Egyptian task management and digital workspace platform. The deal, reportedly worth a seven-figure sum in USD, marks a significant milestone for both parties. While the exact size of the stake remains undisclosed, the acquisition underlines Edafa’s commitment to fostering innovation and scaling businesses in Egypt.

Taskedin, often likened to a regional alternative to global platforms like Slack, offers a suite of tools tailored to local market needs. Its features include virtual meetings, AI chatbots, attendance tracking, collaborative checklists, and payment transfer services. The bilingual nature of the app — offered in both Arabic and English — has positioned it uniquely to address regional gaps in the market.

The funds from the acquisition will enable Taskedin to expand further into the Gulf Cooperation Council (GCC) region, with a particular focus on Saudi Arabia, and beyond. This move aligns with Edafa’s broader strategy of leveraging its portfolio companies to enter new markets.

Edafa Venture ’s CEO, Essam Ali, revealed that the firm plans to acquire stakes in 13 additional Egyptian startups by the end of 2024. These acquisitions will be followed by an infusion of $13 million in fresh capital in 2025. “We have received proposals from over 1,200 Egyptian companies across various sectors, but we are selective. Our target is to acquire 13 companies by the end of next year,” Ali stated in a recent interview.

Unlike many venture capital firms that focus on exits as part of their strategy, Edafa has emphasized its long-term commitment to its investments. “We do not plan to exit any company at this stage,” Ali added, highlighting the firm’s focus on sustained growth and operational support for its portfolio companies.

While Egypt remains a primary focus, Edafa is also looking to broaden its reach across the region. The firm has announced plans to open branches in Bahrain, Kenya, and Qatar, signaling its intent to play a larger role in the Middle East and Africa’s burgeoning tech ecosystems.

In its home market of Saudi Arabia, Edafa already manages a portfolio of 30 companies, leveraging its local expertise to identify scalable business models. The firm’s dual strategy of regional market penetration and operational support offers startups a pathway to navigate complex markets while achieving growth.

Egypt’s startup scene has become increasingly attractive to Gulf investors, thanks to a combination of factors including a large, youthful population, rising internet penetration, and an evolving regulatory environment. According to industry analysts, sectors like fintech, e-commerce, and enterprise software — areas that Edafa has shown interest in — are particularly ripe for growth.

For Edafa, this represents an opportunity to capitalize on a wellspring of untapped potential while contributing to the development of the region’s innovation ecosystem. “Egypt is not just a market; it’s a gateway to scaling into Africa and the Arab world,” Ali explained.