EXCLUSIVE: Dubai-based Yango Group launches $20mn fund to again regional tech startups 

The brand new fund, Yango Ventures, will give attention to seed to Sequence B investments primarily in online-to-offline (O2O), B2B software-as-a-service, and monetary know-how sectors, with plans to scale its capital base as entrepreneurial ecosystems develop in these high-growth markets.

“We’re greater than a tech firm; we’re an ecosystem dedicated to empowering entrepreneurs worldwide,” mentioned Daniil Shuleyko, CEO of Yango Group. “By Yango Ventures, we’re sharing our experience and community to assist startups scale, thrive, and drive significant change of their communities.”

The fund’s creation represents a big enlargement of the Group’s operations past its core enterprise of adapting international know-how options for native markets. The corporate has constructed a various portfolio together with ride-hailing service Yango Trip, leisure platform Yango Play, cost resolution Yango Pay, and navigation service Yango Maps throughout greater than 30 markets globally.

Fund targets 20x returns on Sequence A offers

Yango Ventures goals to leverage this in depth operational expertise to offer extra than simply capital to portfolio firms. The fund will draw on experience from a board comprising professionals who’ve developed and scaled platforms throughout mobility, leisure, fintech, AI, and different sectors.

“Our mission is easy: let folks develop with us,” Shuleyko mentioned. “By supporting native expertise with the best instruments and sources, we purpose to foster sustainable enterprise development and contribute to resilient and inclusive economies throughout the globe.”

For Sequence A startups, which the fund identifies as its “candy spot,” Yango Ventures is focusing on returns of 10-20x over an unspecified timeframe, in keeping with paperwork reviewed by Arabian Enterprise. The fund’s strategy emphasises figuring out ventures with robust market match and scalable enterprise fashions the place Yango’s experience can present extra worth.

Dubai HQ positions fund to faucet ‘excessive development’ markets

The fund’s geographic focus aligns with the Group’s present market presence, focusing on areas the corporate believes supply substantial entrepreneurial potential amid quickly growing digitalisation.

Talking completely to Arabian Enterprise, a Yango Ventures spokesperson defined the rationale.

“These dynamic, high-growth markets supply substantial alternatives, and we leverage our international experience to assist startups scale and succeed, driving digitalisation and sustainable influence within the areas we serve.”

Whereas the fund has but to announce any investments, it’s “actively partaking in discussions with a number of promising startups that align with our funding focus and entrepreneurial mission,” the spokesperson confirmed.

Yango pledges autonomy for founders

Not like some company enterprise funds, Yango Ventures doesn’t plan to exert important management over its portfolio firms or search board seats as a typical follow.

“We don’t plan to be concerned in every day operations. As a substitute, we offer assist to entrepreneurs after they request it, providing steerage and connections to assist them as wanted,” the spokesperson mentioned.

This hands-off philosophy extends to the fund’s merger and acquisition technique. Whereas not ruling out future M&A exercise, the fund emphasised that such transactions are “not certainly one of our major targets at the moment.”

The fund additionally plans to collaborate with different enterprise capital corporations and companions to reinforce its funding actions, sharing insights and offering complete assist to entrepreneurial ecosystems throughout its goal areas.

Capital increase deliberate as preliminary investments show out

Past direct investments, Yango Ventures types a part of the Group‘s wider technique to drive digital transformation and entrepreneurial development.

The corporate organises networking occasions for professionals and companions with academic establishments to develop sensible abilities for future innovators.

The fund’s launch comes amid rising curiosity in enterprise capital alternatives throughout rising markets, with a specific give attention to fintech, mobility, and software program providers that may serve quickly digitalising economies.

Whereas beginning with $20 million in dedicated capital, Yango Ventures has indicated it might develop the fund’s measurement pending the efficiency of preliminary investments.