In a region undergoing massive economic transformation, the Middle East’s travel sector is becoming fertile ground for venture bets – from Umrah companions and cargo startups to AI-led personalisation.
At the WiT Phocuswright Middle East panel moderated by Phocuswright Managing Director Pete Comeau, four influential investors shared candid takes on what it takes to fund and scale the next generation of travel tech in the region.
Travel’s new frontiers: Local roots, global reach
“There’s no better industry than travel to break down borders,” said Lisa Katsouraki, advisor at ennea Capital Partners. She introduced the idea of the “Tern Tribe”, an initiative to help travel startups scale globally by crash-testing models early and accelerating internationalisation. “We see replication in travel tech across geographies. The goal is to help founders go global, sooner.”
William Bao Bean, Venture Partner at SOSV and Managing Director of Orbit Startups, underscored that approach. “Cross-border is the key,” he said. “You won’t find the next unicorn in just one country unless it’s the U.S., China, or maybe India. Markets here are too small, so expansion must be built in.”
The startups that caught their eye
During the session, the investors rated the three startups that had presented earlier as part of the event’s Startup Showcase – AtlaSeek, Umrah Companions, and Belli – with unanimous green lights. Why?
“These are challenging problems being solved,” said Bao Bean. He referenced examples like cross-border food supply logistics, and freight booking for small-volume exporters. “Food security is a big one, we’ve got portfolio companies shipping from Africa and South Asia to the Middle East. The cost of getting a vegetable to the UK is staggering if you don’t have scale.”
For Rebecca Hall, CEO of Kanoo Ventures, Umrah Companions stood out. “One of the least digitized, least transparent parts of travel. If they can crack it, it’s gold.” She highlighted the opportunity in embedded finance and religious travel – segments with strong need but poor tech penetration.
Katsouraki appreciated the focus of all three. “Upper funnel distribution is shifting. B2B logistics might not be sexy, but they’re investable. And then there’s niche targeting like Umrah and Haj — specificity is a strength.”
From left: Pete Comeau (Moderator) Managing Director Phocuswright | William Bao Bean Venture Partner, SOSV / Managing Director, Orbit Startups | Rebecca Hall CEO Kanoo Ventures | Amin Ismail Managing Director Certares | Lisa Katsouraki Advisor ennea Capital Partners
Is it money, machine, or people?
Unanimously: people.
“It’s always the founding team,” said Bao Bean. “If they’re still around through pivots and failures, that’s when magic happens. Amazon still sells books, technically. But they’ve evolved far beyond that.”
Hall added: “We always look at how leadership can transition across growth phases – from startup to scaleup to beyond. That’s where people matter most.”
Strategies for a tougher capital climate
All agreed the funding environment had changed dramatically post-2021.
“There was a bubble,” said Bao Bean. “Now, capital has disappeared from everywhere except AI. We help our startups survive these cycles by focusing on unit economics and zero-cost user acquisition via strategic partnerships – telcos, handset makers – in return for profit share.”
He noted that Orbit’s companies have grown from 50m to 238m monthly active users using these methods. “Four of our best companies got between $15m–$50m each in 2021. They blew themselves up because they didn’t hit profitability. We help prevent that.”
Hall said it’s about getting leaner. “Burn rate, cap table, cost structure – everything is being scrutinized. And yes, profitability is now the North Star.”
Sectors ripe for innovation
Katsouraki flagged accommodation tech, especially tools supporting hotel and vacation rental operators, as an area with fragmentation and opportunity. She also sees upper funnel distribution and traffic acquisition evolving, potentially through AI or new intermediaries.
Amin Ismail, Managing Director at Certares, noted their interest in wellness and longevity, and confirmed they’re actively looking at opportunities in Saudi Arabia and Oman, especially in DMCs, rail support services, and “things to do” in emerging destinations.
Advice to founders? Go big.
The panel ended with advice for founders and incumbents alike. “Have big ambitions,” said Katsouraki. “This is a time of massive reshuffling.”
Ismail added, “Even with cyclical challenges, travel always bounces back; the long-term view is strong.”
When asked where the next travel unicorn would emerge, Bao Bean concluded: “Not from a country. It’ll be cross-border, multi-market by design. That’s the only way forward.”
