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    HomeUpdatesAlgeria’s Public Startup Fund Scores First Exit as Travel-Tech Völz Raises $5M

    Algeria’s Public Startup Fund Scores First Exit as Travel-Tech Völz Raises $5M

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    Algerian travel-tech startup Völz has raised 600m DZD (approximately $5m) in a new funding round led by private local investors.

    The transaction represents one of the largest disclosed rounds denominated in local currency for an Algerian startup. Perhaps more significantly for the wider ecosystem, the deal marks the first successful exit for the Algerian Startup Fund (ASF), the state-backed investment vehicle launched to kickstart the country’s venture capital market.

    The round was led by Tell Group, an investment firm active in the region, alongside the Groupe Industriel Babahoum Algérie (GIBA), a Biskra-based conglomerate best known for its mineral water brand, Guedila.

    The Exit: A proof of concept for public VC?

    The ASF’s exit is a critical milestone for Algeria’s nascent tech scene. Established to bridge the funding gap in a risk-averse banking landscape, the public fund has been the primary source of seed capital for local founders.

    According to figures released during the African Startup Conference in Algiers, the ASF recorded a 3.35x return on investment (ROI) on its initial ticket in Völz.

    For Anys Rahabi, General Manager of the ASF, and the wider ecosystem, this liquidity event offers a necessary signal: that the state-backed model can generate returns and, crucially, that secondary markets or private equity players are willing to buy out early-stage public positions.

    The Problem: Currency controls and connectivity

    Founded in 2022 by Mohamed Abdelhadi Mezi and Hacene Seghier, Völz operates as an Online Travel Agency (OTA) tailored specifically to the friction points of the Algerian market.

    The startup’s core value proposition addresses a financial infrastructure challenge rather than a purely logistical one. Due to strict currency controls, many Algerians struggle to pay for international flights using foreign currency (Euros or Dollars).

    Völz allows users to book flights on international carriers while paying in Algerian Dinar (DZD). To further accommodate a population that remains largely unbanked or skeptical of digital payments, the platform offers a Cash-on-Delivery (CoD) option — a model that has proven essential for e-commerce adoption across North Africa.

    Strategic Capital and “Unicorn” Ambitions

    The company stated that the capital injection will be used to automate backend processes, reduce booking errors, and expand its technical team.

    “This fundraising allows us to accelerate our mission to make travel simpler and more accessible,” said CEO Mohamed Abdelhadi Mezi. “It positions us to become the first Algerian unicorn in this field in Africa.”

    While the “unicorn” label remains an aspirational target for the two-year-old company, the involvement of industrial players like GIBA suggests a shift in how traditional Algerian family offices view tech investments.

    Alongside the funding, Völz announced a commercial partnership with Turkish Airlines, giving the startup access to corporate rates and the airline’s corporate partner program. This move is likely aimed at capturing the B2B travel market, which offers higher margins and recurring revenue compared to B2C sales.

    At a Glance: Völz

    • Founded: 2022
    • HQ: Algiers, Algeria
    • Founders: Mohamed Abdelhadi Mezi, Hacene Seghier
    • Sector: Travel-tech / OTA
    • Deal Size: 600m DZD (~$5m)
    • Key Investors: Tell Group, GIBA (Babahoum)
    • Key Exit: Algerian Startup Fund (3.35x multiple)

    The Bottom Line

    This deal highlights a maturing trend in North African markets: the rotation of capital from “brick and mortar” industries into digital platforms.

    The participation of GIBA (Babahoum) indicates that industrial conglomerates are beginning to see tech not just as a service provider, but as an asset class. For the Algerian ecosystem to move beyond state funding, this engagement from the private sector — specifically established family conglomerates — is the essential next step.

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