Saudi Arabia–based startup Grove has raised $5 million in a seed funding round led by Outliers VC, marking a strong early vote of confidence in the company’s business model and reinforcing growing investor appetite for early-stage ventures in the Kingdom.
The funding round will support Grove’s product development, market expansion, and team growth as the company looks to scale its operations in Saudi Arabia and across the wider Middle East. While Grove has not publicly disclosed its valuation, the size of the seed round places it among the more notable early-stage raises in the Saudi startup ecosystem this year.
Grove operates in a market shaped by rapid digital transformation and increasing demand for technology-driven solutions. The company’s offering is designed to address inefficiencies in its target sector by combining technology, data, and user-centric design. Though still early in its journey, Grove has positioned itself as a scalable platform with regional—and potentially global—ambitions.
Outliers VC’s backing brings both capital and strategic support. Known for investing in high-growth technology startups across emerging markets, the venture firm has increasingly focused on the Middle East, drawn by favorable demographics, strong government support for entrepreneurship, and rising levels of digital adoption. Its decision to lead Grove’s seed round reflects confidence not only in the product, but also in the founding team’s execution capabilities.
Saudi Arabia has emerged as one of the region’s most active startup hubs, supported by initiatives under Vision 2030 aimed at diversifying the economy beyond oil. Government-backed programs, improved access to capital, and regulatory reforms have made it easier for startups to launch and scale locally. As a result, the Kingdom has seen a surge in venture funding, particularly at the seed and Series A stages.
Grove’s founders say the new capital will be used to accelerate roadmap development, strengthen technology infrastructure, and expand customer acquisition efforts. Hiring talent—especially in engineering and product roles—is also a key priority, as competition for skilled professionals intensifies across the region’s tech sector.
Investors note that early-stage companies like Grove benefit from launching in Saudi Arabia’s large domestic market, which provides scale opportunities before international expansion. With a young, digitally savvy population and high smartphone penetration, startups can test, iterate, and grow rapidly while remaining close to customers.
The seed round also highlights a broader trend of regional venture capital firms stepping into lead roles, rather than relying solely on international investors. As local funds mature, they are increasingly shaping the startup landscape by providing not just capital, but also operational guidance, regional networks, and follow-on funding pathways.
While challenges remain—including competition, talent retention, and the need for clear paths to profitability—analysts see Grove’s raise as another signal of the ecosystem’s momentum. Seed rounds of this size were far less common in the region just a few years ago, underscoring how investor confidence has evolved.
For Outliers VC, the investment aligns with its thesis of backing early-stage companies that can define new categories or modernize traditional sectors through technology. The firm believes that startups emerging from Saudi Arabia are well-positioned to address regional pain points while building solutions with global relevance.
As Grove enters its next phase of growth, attention will turn to execution: converting early traction into sustained adoption, expanding partnerships, and demonstrating unit economics that can support future funding rounds. If successful, the company could join a growing list of Saudi startups progressing from seed stage to regional scale.
The $5 million seed round may represent just the beginning of Grove’s journey, but it reflects a broader reality: Saudi Arabia is no longer just a market for startups—it is increasingly a place where technology companies are built, funded, and scaled from the ground up.
