Zest Equity, a fintech company based in the UAE, has secured US$4.3 million in pre-series A funding.

The funding round was led by Prosus Ventures, with participation from Morgan Stanley Inclusive and Sustainable Ventures (MSISV).

Founded in 2021 by Rawan Baddour and Zuhair Shamma, Zest Equity operates a platform for selling secondary shares for founders and venture capitalists.

The company has facilitated transactions totaling US$155 million across more than 115 deals to date.

🔗 Source: Zest Equity

🧠 Food for thought

1️⃣ Secondary markets gaining importance in MENA’s maturing startup ecosystem

Zest Equity’s focus on secondary transactions highlights a critical evolution in the Middle East’s startup ecosystem, where liquidity is becoming increasingly important as early investors seek exits.

The platform has already facilitated over $155 million in transaction value across more than 115 pre-agreed deals, demonstrating substantial demand for secondary market solutions in the region 1.

This development aligns with the broader global trend in private markets, where alternative liquidity solutions have become essential as holding periods extend and traditional exit timelines lengthen 2.

MENA’s fintech sector has matured significantly, with 119 startups raising $700 million in 2024 alone (representing 30% of all MENA startup funding), creating natural pressure for earlier investors to seek partial exits 1.

The company’s growth comes at a strategic time when the regional ecosystem has accumulated enough value to necessitate secondary transaction infrastructure, particularly for deals under $100 million that are typically overlooked by investment banks.

2️⃣ UAE fortifying position as MENA’s fintech capital amid fierce regional competition

Zest Equity’s funding success exemplifies the UAE’s continued dominance in the regional fintech landscape, where the country leads with 13 of the top 50 fintech companies in the Middle East, followed closely by Egypt (12) and Saudi Arabia (10) 1.

The Dubai International Financial Centre (DIFC) has been instrumental in this growth, seeing its fintech registrations surge from 80 to 200 within just six months in a previous period, creating a fertile environment for companies like Zest Equity 3.

This expansion reflects the UAE’s strategic priority to diversify from hydrocarbons toward innovation-led economies, with fintech being a key pillar of this transformation 4.