Investment of $4.3 million in Dubai's Zest Equity, spearheaded by Prosus, expedites the digital transition in private market dealings
Zest Equity Secures $4.3 Million in Pre-Series A Funding for Expansion
Zest Equity, a Dubai-headquartered startup focused on simplifying financial transactions for private companies and investors, has raised $4.3 million in a pre-Series A funding round. The funding round was led by Prosus Ventures, with participation from Morgan Stanley Inclusive & Sustainable Ventures (MSISV).
Founded in 2021 by Zuhair Shamma and Rawan Baddour, Zest Equity initially started as a marketplace for secondary share trading in startups. However, the nascent state of MENA’s tech ecosystem and limited secondary transaction volume led to a pivot in their strategy. The startup is now aiming to broaden their mandate beyond secondary transactions in the MENA private market.
Robin Voogd, Head of Middle East Investments at Prosus Ventures, stated that Zest Equity's vision aligns with their focus on supporting innovative financial infrastructure in high-growth regions. Voogd's sentiments were echoed by Rawan Baddour, who mentioned that MSISV's expertise will be crucial for scaling sustainably and compliantly as the company expands its operations across the GCC.
With the fresh influx of capital, Zest Equity plans to expand their platform to serve various types of private market transactions, particularly those under $100 million in transaction size. They aim to emulate Stripe's transformative impact on payments but applied to all private market transactions, positioning themselves as the go-to infrastructure platform for these deals in MENA.
The expansion strategy includes allowing users to create pre-agreed deals, consolidate investors into single special purpose vehicles (SPVs), and manage all communication digitally through their platform. By doing so, they aim to increase deal volume significantly—from 5 deals in 2022 to over 55 deals in 2024—indicating rapid growth and adoption of their platform.
To date, Zest Equity has facilitated over $155 million in transaction value across more than 115 deals. The startup also plans to scale its technology infrastructure and hire specialized talent to support their growth. They also intend to develop new products as part of their expansion plans.
Zest Equity's focus is clear: digital infrastructure development for private equity transactions and enhancing transactional workflow and transparency in the region. While there is no direct mention of geographic expansion outside MENA or specific product launches, their growth focus signals a scalable expansion into larger segments of private market infrastructure.
[1] Data sourced from various company statements and press releases.
- Zest Equity, with its focus on innovative financial infrastructure, plans to leverage technology to expand its platform for various private market transactions, including those under $100 million, emulating Stripe's impact on the payments industry.
- As part of its expansion strategy, Zest Equity aims to scale its technology infrastructure, hire specialized talent, and develop new products, signaling a potential scalable expansion into larger segments of private market infrastructure, beyond just MENA.
