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Saudi-based Khwarizmi Ventures has launched its second fund, completing a first close at more than $70 million (SAR 270 million) in February from institutional investors and Saudi family offices.
The firm is continuing to raise toward a target of $100 million to $120 million, as FWDstart first reported last June. The first close alone matches the total size of Fund I, which closed at $70 million in 2022.
Fund II will invest $1 million to $5 million initial cheques into seed and Series A startups across the GCC, up from the $500,000 to $2 million range in Fund I, with significant capacity reserved for follow-on investments. The fund remains sector-agnostic with a focus on fintech, consumer technology and AI.
Khwarizmi was founded in 2021 and is led by managing partner Abdulaziz AlTurki alongside partners Homam Meaddawi and Arjun Chopra. The founding partners are Dr Ibrahim Almojel, the CEO of the Saudi Industrial Development Fund (SIDF) who also sits on the boards of Saudi National Bank and STC, and Yasser Alkadi.
Fund I has backed more than 30 startups and delivered five exits within its first five years, with the firm already distributing capital to LPs. The portfolio includes Calo, Eyewa, SiFi, Tamara, HALA, TruKKer and Soum. Exits include secondary sales in Tamara, the Saudi BNPL unicorn, and POSRocket.
Khwarizmi also co-led the $9.4 million seed round for Aajil (formerly BuildNow), the construction BNPL platform that recently received investment from SIDF's investment arm SIC.
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