Over a decade ago, I found myself in a dimly lit room in Paris with Rocket Internet’s leadership:Sacha and Jeremy, who were running Africa Internet Group (now Jumia), and Eyad, CEO of Rocket Internet Middle East. The conversation centered on a bold thesis by Rocket's founder, Oliver Samwer: “We don’t take business model risk. We copy proven ideas from the West and scale them in emerging markets.”

The rationale was simple: technology-enabled business models in emerging markets represented a massive opportunity. Why innovate when you can replicate what already works in Europe and the US? Fast forward more than ten years, and this copycat model has become synonymous with MENA’s tech ecosystem. But the big question remains: Did it work? And what can we learn from it today as investors and founders?

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Copycats 1.0: Building the Market

The first generation of copycat businesses in MENA didn’t just thrive—they became the foundation of the region’s venture ecosystem. Companies like Maktoob (acquired by Yahoo), Souq/Noon (Amazon),Careem (Uber), Talabat, Jahez, and Eyewa (similar to Warby Parker) were built on proven models. Yet, their success wasn’t just about copying; it was about execution, timing, and understanding MENA’s unique dynamics.

Their success relied on three critical factors:

1. First-Mover Advantage – These companies entered their markets early, often at the same time as, or even ahead of, global competitors.

2. Exceptional Founding Teams –With strong leadership, these companies scaled aggressively despite limited access to capital, especially in the early days of MENA's venture landscape.

3. Localization – Adapting the product and service offering to meet local preferences, such as payment methods, delivery infrastructure, or cultural factors, created defensibility and trust.

These companies didn’t just succeed—they changed the narrative. Careem wasn’t just MENA’s version of Uber; it was the first regional champion to be acquired for $3.1 billion. Talabat’s recent rise to become MENA’s first ‘decacorn,’ with a market cap rivaling its parent company Delivery Hero, exemplifies how regional businesses can outgrow their global counterparts.

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Copycats 2.0: Decoupling from the West

The second wave of copycats faced more skepticism. Investors, particularly international ones, saw models like BNPL(Buy Now, Pay Later) and QR-based payments as “failed” or oversaturated in Western markets. What they missed was that MENA’s market dynamics created entirely different opportunities for these models to succeed.

a.    BNPL (Tabby, Tamara): In the West, BNPL struggled with over-credit saturation and default risks. But in MENA, the model solved two massive pain points:
1. Displacing Cash-on-Delivery – E-commerce in Saudi Arabia, for instance, still relies heavily on COD, creating inefficiencies and risks.
2. Under penetration of Credit Cards – With large swathes of the population underserved by credit, BNPL fills a real financing gap.
As a result, BNPL now accounts for c. 50% of ecommerce payments in Saudi, withcompanies like Tabby achieving profitability and setting benchmarks for uniteconomics.

b.    QR Restaurant Payments (Qlub): Similarly, Qlub capitalized on MENA’s high mobile internet penetration and rapid SME adoption of digital tools. In markets like the UAE and Saudi Arabia, QR payments deliver unmatched convenience for both businesses and consumers. Qlub is now expanding globally, competing head-to-head with European counterparts like Sunday.

c.    Subscription Meal Delivery (Calo): While platforms like HelloFresh and Blue Apron in the US and Europe deliver pre-portioned ingredients and recipes for customers to cook at home, Calo’s model focuses on delivering fully prepared, personalized meals. By tailoring its offerings to MENA’s dietary preferences and leveraging proprietary algorithms for tech-driven personalization, Calo has created a defensible moat.Its success highlights how adapting proven concepts to regional strengths can unlock tremendous value.

The lesson here? These businesses weren’t just copied—they were adapted to address specific regional challenges. The success of these models lies in understanding how local conditions change the opportunity.

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What This Means for Founders

The copycat playbook is far from obsolete, but founders must evolve their approach to win in today’s market. Here’s what they need to focus on:

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1. You can Copy, But Localize Deeply: Copycat models still work, but success depends on thorough market understanding. Localization—whether in pricing, logistics, or customer experience—can turn a global idea into a regional success. However, founders must identify whether localization is an advantage or a hindrance for the business.

2. Find Large White Spaces: Many large TAMs like food delivery, ecommerce, and consumer lending are saturated. The real opportunities lie in underserved white spaces. For example, supply chain financing is a massive pain point in MENA due to long payment terms and liquidity gaps. At Nuwa Capital, we’ve invested in Mala, a company solving this problem for SMEs.

3. Build Defensibility Beyond Execution: Execution and capital are important, but they’re not sustainable moats. Founders must think about what will protect their business long-term—whether it’s technology, network effects, or deep customer loyalty.

4. Explore Adjacent Opportunities: When markets become red oceans, look for opportunities to serve the ecosystem instead. Adjacent plays—like infrastructure, logistics, or B2B services—can be less competitive and highly profitable.

In short, the copycat model isn’t dead—it’s evolving. The winners of the next decade will be those who combine proven ideas with sharp execution, regional insights, and defensibility. Emerging markets like MENA don’t need to follow the West; they have the potential to carve their own path and redefine what success looks like.

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