Key Takeaways
- • Khwarizmi Ventures closed its first tranche of Fund II at SAR270 million (US$70 million) in commitments, doubling the capital deployed in its inaugural fund launched in 2021.
- • The fund targets seed and Series A startups across the GCC with investment tickets between $1 million and $5 million, with capital already deploying and first investments expected to be announced imminently.
- • Khwarizmi's first fund achieved five exits and returned capital to investors within five years, having invested in 30+ regional startups including fintech unicorn Tamara, Eyewa, and SiFi.
- • The fund maintains strategic focus on fintech, consumer technology, and artificial intelligence while allocating capital for follow-on rounds to support portfolio scaling.
- • The announcement aligns with accelerating Saudi venture funding momentum, with Saudi startups raising $1.7 billion across 257 deals in 2025—a 145 percent increase year-over-year.
Summary
Khwarizmi Ventures, a Saudi-based venture capital firm, has completed the first close of its second fund with commitments totaling SAR270 million (US$70 million), signaling renewed institutional confidence in GCC-region technology investing. The fund targets early-stage companies at the seed and Series A stages, with individual investment tickets sized between $1 million and $5 million. The firm has already begun capital deployment and anticipates announcing its initial portfolio investments in the near term.
The second fund maintains thematic alignment with Khwarizmi's investment thesis, focusing on fintech, consumer technology, and artificial intelligence across the GCC market. The fund structure includes capital reserved for follow-on investments, enabling the firm to support portfolio companies through later growth stages. This multi-round strategy reflects lessons from the firm's first fund, which achieved tangible returns through disciplined capital deployment.
Khwarizmi's track record provides institutional investors with measurable evidence of execution capability. The firm's first US$70 million fund, launched in 2021, has completed five exits and distributed capital to investors within its first five years—a meaningful achievement in venture markets where J-curve dynamics typically extend liquidity timelines. The fund's portfolio includes notable regional successes: Tamara (Saudi Arabia's first homegrown fintech unicorn), Eyewa (UAE-based online eyewear retailer), SiFi (Saudi Arabia-based fintech), Calo (Bahrain-born, KSA-headquartered foodtech startup), and HALA (Saudi Arabia-based fintech). Over five years, the firm deployed capital across more than 30 regional startups.
Fund II's launch arrives during a period of robust venture capital momentum in Saudi Arabia specifically. Saudi startups raised $1.7 billion through 257 deals in 2025, representing a 145 percent increase in funding value compared to 2024. This growth trajectory underscores deepening institutional and strategic investor interest in regional technology ecosystems, providing tailwinds for emerging fund vehicles targeting early-stage companies in core technology segments.
The second fund maintains thematic alignment with Khwarizmi's investment thesis, focusing on fintech, consumer technology, and artificial intelligence across the GCC market. The fund structure includes capital reserved for follow-on investments, enabling the firm to support portfolio companies through later growth stages. This multi-round strategy reflects lessons from the firm's first fund, which achieved tangible returns through disciplined capital deployment.
Khwarizmi's track record provides institutional investors with measurable evidence of execution capability. The firm's first US$70 million fund, launched in 2021, has completed five exits and distributed capital to investors within its first five years—a meaningful achievement in venture markets where J-curve dynamics typically extend liquidity timelines. The fund's portfolio includes notable regional successes: Tamara (Saudi Arabia's first homegrown fintech unicorn), Eyewa (UAE-based online eyewear retailer), SiFi (Saudi Arabia-based fintech), Calo (Bahrain-born, KSA-headquartered foodtech startup), and HALA (Saudi Arabia-based fintech). Over five years, the firm deployed capital across more than 30 regional startups.
Fund II's launch arrives during a period of robust venture capital momentum in Saudi Arabia specifically. Saudi startups raised $1.7 billion through 257 deals in 2025, representing a 145 percent increase in funding value compared to 2024. This growth trajectory underscores deepening institutional and strategic investor interest in regional technology ecosystems, providing tailwinds for emerging fund vehicles targeting early-stage companies in core technology segments.
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