Khwarizmi Ventures Leads $1.6M Investment in Saudi Fashion Startup Aya

Saudi Arabia-based e-commerce startup Aya has secured $1.6 million (SAR 6 million) in seed funding, with Khwarizmi Ventures leading the round. The investment also saw participation from Turki Alrajhi, FENA Holdings, Raed Ventures, Joa Capital, and multiple angel investors.

Aya aims to streamline the modest fashion industry by creating a unified discovery platform. The newly secured funds will support product development, market expansion, and improving the overall customer experience.

Aya, founded in 2024 by Munira Al Kadi and Abdulrahman Al Ammar, seeks to reshape the modest fashion industry by unifying its scattered market into a trend-focused platform. By utilizing real-time customer insights, the startup forecasts fashion trends and links local manufacturers with consumer demand, optimizing the supply chain.

With the newly secured funding, Aya plans to accelerate product development, expand its market reach, and enhance its platform capabilities. The company focuses on the abaya segment, a multi-billion-dollar market that remains highly disorganized despite its cultural and economic significance.

Khwarizmi Ventures, the lead investor, sees Aya as a game-changer in e-commerce. “Aya is tackling a massive yet underserved market with a strong data-driven approach. We believe their vision will drive significant industry change,” said Homam Meaddawi, a partner at Khwarizmi Ventures.

DHL reports that the global modest fashion market was worth $295 billion in 2024 and is expected to reach $375 billion by 2025. However, stylish, culturally relevant, and easily accessible options remain scarce. Aya aims to address this gap by streamlining the shopping experience and enabling manufacturers to create fashion on demand.

Aya’s co-founder and CEO, Munira Al-Kadi, emphasized that the investment is more than just financial backing. “This funding validates our mission to reshape modest fashion. We are revolutionizing the way it is designed, marketed, and sold,” she stated.

As global demand for modest fashion grows, the startup aims to lead the industry by making stylish and culturally relevant clothing more accessible.

Aya’s funding comes amid a surge in investment within Saudi Arabia’s startup ecosystem. In 2024, startups across the country secured $699.8 million through 186 deals, according to Wamda. While SaaS and fintech attracted the largest shares, e-commerce startups, including Aya, raised $84.5 million across 14 transactions, highlighting the sector’s growing potential.