Strong Investment Momentum in Q1 2025

Startups in the Middle East and North Africa (MENA) region witnessed remarkable growth in Q1 2025, raising $693 million across 137 deals—a 60% increase compared to the same period in 2024.

These figures reflect a strong recovery from the downturn of 2023 and renewed investor confidence in the regional ecosystem, especially as governments across the Gulf continue expanding support for innovation and entrepreneurship.

Saudi Arabia: Proactive Strategy and Tangible Results

Saudi Arabia led the region’s investment landscape, attracting 50.3% of total funding—approximately $348.3 million—through 54 deals, which accounted for 39.4% of all transactions. This growth is not a one-off but part of a long-term trajectory fueled by institutional support, streamlined regulation, and strategic vision.

Initiatives such as the LEAP 2025 tech conference have become official launchpads for major startup funding announcements in deep tech, AI, health tech, and edtech. These results align with Vision 2030, which aims to diversify the economy, empower youth and women, and bolster the private sector's role in national development. National accelerators like Monsha’at and regulatory reforms have created a fertile ground for entrepreneurial growth.

Egypt: Abundant Talent, Persistent Obstacles

Egypt raised $43.6 million across 16 deals during the same period, representing only 6.3% of the region’s total startup investments. Despite being one of the oldest and most vibrant entrepreneurial hubs in the Arab world, Egypt's current standing is hindered by economic instability, currency fluctuations, high inflation, and regulatory uncertainty—factors that continue to affect investor confidence.

However, Egypt still holds what can be called a 'digital goldmine': a large pool of skilled tech talent, competitive operational costs, and a generation of entrepreneurs building impactful startups in fintech, edtech, and healthtech.

Startups like Swvl, which achieved unicorn status before facing operational downsizing, and MoneyFellows, a platform digitizing traditional ROSCA models, illustrate the ecosystem's potential and its fragility.

Top Funded Sectors: Fintech Leads the Way

According to a report from Wamda covering February 2025, fintech was the top-funded sector, attracting $274 million across 15 deals. Saudi Arabia led this vertical with startups like Tabby and Tamara, which continue to scale regionally.

Insurtech ranked second with $55 million from two deals, followed by logistics, which raised $28.5 million across four deals.
In Egypt, funding was more diversified, with growing interest in digital education, mobility, and HR tech. However, no single sector demonstrated dominance, reflecting both opportunity and fragmentation.

The Saudi-Egypt Gap: Not in Talent, But in Climate

Despite its human capital and entrepreneurial legacy, Egypt lacks a cohesive long-term strategy for startup development. While Saudi Arabia offers tax incentives, streamlined business registration, and direct funding support, Egyptian entrepreneurs still face bureaucratic bottlenecks, outdated legal frameworks, and limited government-backed accelerators.

This disparity underscores a larger truth: the difference is not about resources but about political and strategic will. Saudi Arabia has aligned capital, infrastructure, and education within a national economic vision. Egypt’s efforts remain fragmented and donor-driven, lacking institutional continuity or scalability.

Future Outlook and Recommendations

Analysts believe the region’s startup landscape is poised for further transformation in 2025–2026, with new capital expected from Asian and European markets—especially if political and economic stability improves in countries like Lebanon, Tunisia, and Iraq.

To capitalize on these opportunities, Egypt needs to:
- Enact urgent regulatory reforms to ease business formation.
- Accelerate government digital transformation.
- Build structured public-private partnerships to fund and mentor startups.
- Provide targeted support for scale-ups, not just early-stage ventures.

Meanwhile, Saudi Arabia must sustain momentum by enhancing legislative openness and facilitating global expansion through trade deals and export incentives. The upcoming Arab Tech Summit and increased EU interest in cross-Mediterranean digital trade zones suggest that stable innovation hubs will attract the next wave of capital.

Sources

1. Fintech Gate – "MENA Startups Raise $693 Million in Q1 2025"
   https://fintechgate.net/2025/04/13/الشركات-الناشئة-بالشرق-الأوسط-وشمال-أ-13/
2. Wamda – "MENA Startups Raised $494 Million in February 2025"
   https://www.wamda.com/2025/03/mena-startups-raised-494-million-february-2025-371-mom-growth-arabic
3. Alborsa News – "Egyptian Startups Raised $608 Million in 2023"
   https://www.alborsaanews.com/2025/02/23/1871114

In one of the harshest environments on Earth, a quiet startup is reshaping the future of sustainable agriculture — not just in the UAE, but across arid regions globally. The company is called HyveGeo.

Operating between Cambridge in the UK and Abu Dhabi in the UAE, it offers a pioneering technological model that uses biochar and microalgae to transform desert sand into fertile soil, while actively sequestering carbon.

In a country where more than 80% of the land is desert and less than 1% is arable, and where over 90% of food is imported, innovation in agriculture isn't just a business opportunity — it's a matter of national survival.

HyveGeo’s approach involves processing organic waste from local palm farms through pyrolysis to produce biochar, a carbon-rich substance historically used to improve soil and now considered a key weapon in reducing agriculture’s carbon footprint.

To date, the pilot site in Abu Dhabi has generated over 200 tons of biochar, diverting 800 tons of organic waste from landfills. The company plans to scale up by launching its first commercial facility in 2026, with the capacity to process up to 40,000 tons of biomass annually.

But HyveGeo doesn’t stop at biochar. To make agriculture viable in the desert, it processes microalgae using biorefining techniques that extract biologically active compounds. These compounds function as natural fertilizers and growth stimulants, enhancing plant health and soil vitality.

Microalgae play a central role: they absorb CO2, release oxygen, and improve microbial activity in the soil. When combined with biochar and beneficial bacteria, they form customized soil solutions tailored for specific crops or even for creating forests in arid lands.

As co-founder Abdulaziz Bin Redha puts it: “We accelerate soil formation from five years to less than a month.”

In addition to agriculture, HyveGeo taps into the rapidly expanding global carbon credit market. By quantifying the carbon sequestration achieved through biochar, the company sells verified carbon credits, enabling international companies to offset their emissions.

This dual-income model — selling organic soil solutions and exporting carbon credits — positions HyveGeo at the intersection of environmental impact and economic value.

Despite early success, challenges remain. Scaling up microalgae production, adapting to market skepticism, and engaging policymakers in long-term thinking are all part of the journey.

In a March 2025 interview with CNBC Arabia, Bin Redha highlighted the UAE’s ideal conditions for algae farming: vast land, consistent sunlight, and high temperatures. Ongoing trials in collaboration with Abu Dhabi Agriculture and Food Safety Authority and Silal aim to validate HyveGeo’s formulations on crops like tomatoes.

The company’s ambitions are bold: rehabilitating 10,000 hectares of degraded land and sequestering one million tons of CO2 by 2035. Expansion plans include technology licensing in desertification-prone countries such as Sudan, Saudi Arabia, and parts of South Asia.

The next strategic frontier is Africa, where over 60% of the population is affected by land degradation, yet solar resources and urgency for food security make it a ripe ground for sustainable innovation.

Sources

1. CNN Arabic – "UAE startup offers a solution to the carbon and food crisis"
   https://arabic.cnn.com/science-and-health/article/2025/04/09/hyvegeo-green-desert-microalgae-charcoal-spc
2. CNBC Arabia – Interview with HyveGeo co-founder Abdulaziz Bin Redha (March 2025)
   https://www.cnbcarabia.com/news/view/111116/hyvegeo-uae-startup-carbon-agriculture.html

The Middle East and North Africa (MENA) startup landscape underwent a transformative period in February 2025, characterized by an unprecedented surge in investment activity. The region witnessed a substantial influx of capital, with startups collectively securing $494 million across a total of 58 distinct deals.

This figure represents a remarkable leap, illustrating a near fivefold increase when compared to the investment figures recorded during the same month in the preceding year.

This dramatic uptick in funding signifies a profound shift in the investment climate, particularly when considering the preceding month's dynamics. In January, debt financing constituted a staggering 90% of the total investment volume, indicating a heavy reliance on loan-based capital.

However, February presented a stark contrast, with debt financing plummeting to a mere 15% of the total investment. This abrupt transition underscores a clear pivot towards equity-based funding, suggesting a renewed investor confidence in the long-term growth potential of MENA startups. When isolating equity investments, February's growth becomes even more pronounced, revealing a 371% month-on-month (MoM) increase in investment activity.

A significant catalyst for this surge was the prominent role played by Saudi Arabia, which emerged as the region's leading hub for startup funding. Saudi Arabian startups successfully raised $250.3 million across 25 deals, establishing a dominant position within the MENA ecosystem.

This surge was significantly amplified by the LEAP 2025 conference, a landmark event that served as a platform for numerous startups to announce the successful closure of their funding rounds. The conference's impact extended beyond mere announcements, fostering a sense of momentum and attracting further investor attention to the Saudi Arabian market.

Following Saudi Arabia, the United Arab Emirates (UAE) secured the second position, with 15 of its startups raising a total of $203.5 million. While the UAE maintained a strong presence, Egypt experienced a comparatively subdued month, with eight startups raising a combined $27.5 million.

Oman, however, demonstrated a resurgence, reclaiming a spot among the top four with two startups securing $6 million in funding.

The fintech sector continued to assert its dominance, solidifying its position as the most attractive sector for investors. Last month, fintech startups successfully secured $274 million across 15 deals, demonstrating the sector's enduring appeal and its pivotal role in driving financial innovation within the region.

Insurtech emerged as a notable contender, raising $55 million through two substantial deals, while the logistics sector secured the third position, attracting $28.5 million across four deals.

February also witnessed a significant shift towards later-stage investments, indicating a growing investor appetite for mature startups with established track records. Tabby's successful Series E funding round, which garnered $160 million, exemplified this trend.

Similarly, Ula and Merit Incentives each secured $28 million in Series B funding, further underscoring the increasing focus on growth-stage companies. Taager and Khazna also achieved significant milestones, successfully closing their pre-Series B rounds with $6.7 million and $16 million, respectively.

Despite the surge in later-stage investments, pre-seed investments remained prevalent in terms of deal count, with 15 startups securing a total of $22 million. Series A startups attracted $158 million across seven rounds, while 10 seed-stage startups received $27.8 million.

In terms of business models, business-to-business (B2B) startups emerged as the most heavily funded category, securing $191.6 million across 33 deals. Business-to-consumer (B2C) startups raised $138.5 million across 18 deals, while six startups operating in both domains garnered a combined $164 million.

However, a stark gender disparity in funding persisted. Startups led by male founders secured a substantial $429 million, representing 87% of the total investment for the month.

In contrast, startups with female founders received a mere $200,000, while the remaining funds were invested in startups co-founded by both genders.ش

The Middle East and North Africa (MENA) startup scene opened 2025 with a seemingly impressive $863 million in total investments, distributed across 63 funding rounds. However, a closer examination reveals a more nuanced picture. The lion's share, a staggering $768 million, was attributed to debt financing, effectively masking the true state of equity-based investment.

When this debt component is removed, the actual equity investment figures for January 2025 closely resemble those of January 2024, indicating a less dramatic growth trajectory than initially perceived.

While the raw figures suggested a 210% month-on-month (MoM) increase in overall investment, this metric is heavily skewed by the substantial debt financing.

Stripping out the debt from both January's figures reveals a starkly different reality: a 64% MoM decrease in equity-based investments. This highlights the importance of distinguishing between debt and equity when analyzing startup funding trends.

The beginning of a new year often brings a period of cautious observation within the investment landscape. Investors typically adopt a more measured approach, carefully assessing market dynamics and potential risks. Simultaneously, entrepreneurs engage in strategic preparations, refining their pitch decks and meticulously evaluating their business valuations before embarking on fundraising efforts.

Despite this inherent seasonal slowdown, there's a palpable sense of anticipation surrounding the first quarter of 2025. The burgeoning ecosystems in regions like Qatar and Oman, coupled with the ongoing LEAP 2025 event in Saudi Arabia, are expected to inject significant momentum into the MENA startup scene.

Saudi Arabia emerged as the dominant force in January, largely propelled by substantial debt deals involving Lendo and Forus. Saudi startups secured a total of $839.5 million across 21 funding rounds, with a significant $750 million stemming from these two debt transactions alone. This concentration of capital underscores the influence of large-scale debt financing on the overall investment landscape.

In contrast, the United Arab Emirates (UAE) experienced a comparatively subdued month. UAE-based startups collectively raised a mere $14.6 million across 15 funding rounds, a figure considered disappointing relative to the region's usual performance. Egypt followed with $6 million in funding across seven deals. The remaining MENA countries collectively attracted less than $2.5 million in total investments.

The fintech sector emerged as the clear leader in terms of investment volume, amassing $776.6 million across 11 transactions. This dominance was significantly bolstered by the Lendo and Forus debt deals. The proptech sector secured the second position, attracting $38.7 million from four startups, while the e-commerce sector trailed closely behind with $30 million across five deals.

January was characterized by a scarcity of later-stage investment announcements, with the exception of Lendo's post-Series B debt round. The majority of equity investments were directed towards Series A rounds, with two transactions occurring. However, in terms of deal volume, the pre-seed stage took the lead, with 15 startups securing a combined $4.6 million.

Investors continued to demonstrate a strong preference for business-to-business (B2B) models, contributing $692 million to 41 B2B startups. In contrast, business-to-consumer (B2C) startups secured $70.5 million across 20 deals. The remaining funds were allocated to two startups operating under a hybrid B2B/B2C model.

A notable disparity remained in gender-based funding. Startups founded by male entrepreneurs received the lion's share of investments, totaling $795 million across 47 deals. However, startups founded by women demonstrated significant growth, attracting $61.6 million in funding. Approximately $5.6 million was allocated to startups co-founded by both men and women.

Regional Investment Breakdown (January 2025):

The distribution of investment across the MENA region in January 2025 highlighted significant disparities. Saudi Arabia led the pack with a commanding $893.5 million across 21 deals, largely due to the aforementioned substantial debt financings. In stark contrast, the United Arab Emirates saw a comparatively modest $14.6 million distributed across 15 deals. Egypt followed with $6 million from 7 deals.

Further down the list, Oman secured $750,000 from a single deal, while Tunisia attracted $510,000 from two deals. Lebanon saw $259,000 across 5 deals, and Palestine received $100,000 from one deal. Jordan secured $52,000 from a single deal, and Sudan saw $42,000 across 8 deals, illustrating the diverse funding landscape across the MENA region.

UpLevel, a Saudi Arabia-based edtech startup, has successfully secured an undisclosed pre-Seed funding round from a group of angel investors.

Founded in 2024 by Idris Alshayea and Hamad AlLuhaidan, UpLevel is dedicated to enhancing employee performance within organizations.

The company achieves this by connecting companies with a curated network of experienced professional coaches, providing access to specialized career guidance, innovative mentoring programs, and customized training solutions that align with global best practices.

UpLevel's mission is to empower both individuals and organizations to achieve sustainable professional growth and enhance institutional performance.

Press Release:

Saudi edtech startup UpLevel has successfully raised an undisclosed pre-Seed funding round from a group of angel investors.

The company provides intelligent solutions aimed at empowering individuals and organizations to achieve sustainable professional growth and enhance institutional performance. This is achieved through specialized career guidance, innovative mentoring, and training programs designed according to global standards.

The Middle East and North Africa (MENA) startup ecosystem experienced a notable slowdown in October 2024. Startups in the region raised a total of $134 million across 56 deals, marking a significant 52% month-on-month decline and a 13% year-on-year decrease. This downturn suggests a potential shift in investor sentiment or a temporary pause in the region's rapid startup growth.

Key Trends in October 2024

• Debt Financing Gains Traction: Debt financing accounted for a significant portion of the total funding raised, signaling a growing preference for this funding model among startups. Ejari, a prominent player in the proptech sector, secured the largest deal of the month with a $14.65 million seed round.
  
  
• UAE and Saudi Arabia Maintain Dominance: The United Arab Emirates and Saudi Arabia continued to lead the MENA startup ecosystem, securing $61.8 million and $50 million, respectively.
  
  These two countries have consistently been at the forefront of the region's startup scene, attracting substantial investor interest.
• Egypt and Tunisia Experience Slowdown: Egypt, a key player in the MENA startup ecosystem, witnessed a significant downturn, with startups raising only $1.6 million. Tunisia and Qatar, while still active, also experienced a slowdown, raising $3 million and $2.7 million, respectively.
  
  
• PropTech Emerges as a Leading Sector: PropTech emerged as a standout sector, attracting $38 million in investment.
  This surge in interest highlights the growing importance of real estate technology solutions in the region.
  
  
• Early-Stage Focus Persists: Investors continued to favor early-stage startups, with seed stage deals accounting for 30% of the total funding. This trend underscores the ongoing focus on nurturing nascent startups and providing them with the necessary capital to scale.
  
  
• B2C Model Remains Popular: B2C startups continued to attract significant investor interest, securing $83.8 million in funding. This preference for B2C models reflects the growing consumer market in the MENA region and the increasing demand for innovative products and services.
  
  
• Rise of Female-Founded Startups: Female-founded startups raised $10.5 million, demonstrating a positive trend in gender diversity within the MENA startup ecosystem. Investors are increasingly recognizing the potential of female entrepreneurs and their ability to drive innovation and growth.

A Deeper Dive into the Data

The geographic distribution of funding in October 2024 highlights the continued dominance of the UAE and Saudi Arabia. While Egypt and Tunisia experienced a slowdown, other countries like Kuwait and Qatar showed promising signs of growth.

Furthermore, the sector-wise breakdown reveals the growing importance of PropTech and the sustained interest in FinTech. Early-stage startups continue to attract significant investor attention, indicating a focus on nurturing the next generation of innovative companies.

While October 2024 marked a temporary slowdown in the MENA startup ecosystem, the region's long-term potential remains strong. As the startup landscape continues to evolve, it is crucial to monitor emerging trends and anticipate future shifts in investor sentiment and industry dynamics.

The Middle East and North Africa (MENA) region witnessed a significant uptick in startup funding during September 2024. A total of $282 million was raised by 63 startups, marking a substantial 234% increase month-over-month and a 607% rise year-over-year. Debt financing accounted for just 12% of the total investment, indicating a preference for equity-based funding.

Saudi Arabia Dominates the Landscape

Saudi startups once again emerged as the top-funded ecosystem in the MENA region, securing more than 60% of the total investment. They raised $170.8 million across 23 deals, surpassing the UAE, which raised $73.8 million through 12 startups. Egyptian startups, however, lagged behind, raising only $25 million.

Fintech Remains the Top-Funded Sector

For the fourth consecutive month, fintech maintained its position as the most sought-after sector by investors. Startups in this space raised an impressive $102.5 million across 14 deals. The mobility sector followed closely, driven primarily by SHIFT's substantial funding round.

Early-Stage Startups Continue to Attract Investor Interest

Investors demonstrated a strong preference for early-stage startups, with $102 million invested in 15 seed deals and $5 million in seven pre-seed startups. While later-stage startups secured fewer deals, notable transactions included Paymob's $22 million Series B and Syarah's $60 million Series C.

B2C Startups Lead in Investment Value

The business-to-consumer (B2C) model emerged as the top-funded business model, attracting $93.7 million across 24 startups. Although business-to-business (B2B) startups received $84.6 million, startups operating in both domains collectively secured the majority of investment value, raising $100 million across five deals.

Gender Gap in Funding Persists

While female-founded startups continued to be underrepresented, they did secure $583,000 in funding, primarily through grants. Male-founded startups dominated the landscape, raising $260 million. However, there were signs of progress, with seven startups co-founded by men and women raising a total of $21 million.

MENA Startup Ecosystem Shows Resilience Amidst Challenges

The Middle East and North Africa (MENA) region's startup ecosystem demonstrated remarkable resilience in the third quarter of 2024, defying the challenges posed by escalating regional tensions and economic uncertainties.

Despite these hurdles, the ecosystem witnessed a surge in investment activity, with a total of $727 million secured by 136 startups.

This represents a substantial increase of 192% compared to the same period last year and a 60% rise from the previous quarter.

UAE Maintains Top Spot

While Saudi Arabia has consistently shown strong growth, the UAE-based startups continue to lead the MENA region in terms of investment amount. They raised $233 million in Q3 2024, a 23% decline quarter-over-quarter but a 65% increase year-over-year. Saudi startups followed closely, securing $219 million.

Egypt's Ecosystem Flourishes

Egypt's startup ecosystem experienced an impressive surge, attracting $215 million in Q3 2024. This marked a 345% increase quarter-over-quarter and a staggering 1076% increase year-over-year, defying the deteriorating economic conditions and geopolitical turmoil.

Oman and Jordan Emerge

Oman and Jordan also demonstrated growth, with Oman securing $40 million across three startups and Jordan securing $2.5 million through 11 deals.

Fintech Retains Top Position

Fintech reclaimed its position as the top-funded sector, raising $355 million through 38 transactions. Web3 followed with $99 million, while e-commerce startups raised $86 million.

Early-Stage Startups Remain Favored

Investors continued to favor early-stage startups, with seed deals accounting for $218 million and Series A deals totaling $160 million. Later-stage startups were less active, with only a few transactions noted.

B2B Dominates Investment

The business-to-business (B2B) model emerged as the most funded, attracting $477.6 million. While business-to-consumer (B2C) startups received $124 million, those operating in both domains secured $100 million.

Gender Gap Persists

Male-founded startups dominated the landscape, raising $683 million, while female-founded startups raised $953,000. However, there were signs of progress with seven startups co-founded by men and women raising $21 million.

Outlook for Q4

The MENA startup ecosystem is poised for continued growth, driven by several factors. Local venture capitalists are increasingly recognizing the region's potential, while rising oil prices provide favorable conditions for investment. The positive momentum is expected to continue into Q4 2024.

Key Trends and Future Prospects

Increasing Digitization: The region's rapid adoption of digital technologies is creating new opportunities for startups across various sectors.

Government Support: Governments are actively fostering startup growth through initiatives like technology parks, incubators, and funding programs.

Talent Pool Expansion: The MENA region is witnessing a growing pool of talented entrepreneurs, driving innovation and growth.

Global Competition: MENA startups must differentiate themselves and offer unique value propositions to compete effectively in the global market.

Regulatory Challenges: Simplifying regulatory procedures and providing clear guidelines can facilitate startup growth.

Cultural Barriers: Understanding and adapting to cultural nuances is essential for successful cross-border collaborations.

Addressing these challenges and capitalizing on these trends will be crucial for the continued success of the MENA startup ecosystem. By fostering innovation, building partnerships, and scaling internationally, the region can position itself as a global leader in entrepreneurship.

Jetapult, a leading global gaming investment firm, has announced a significant investment in UMX, a promising game studio based in Saudi Arabia. The $4.5 million infusion of capital will empower UMX to expand its game portfolio, reach new audiences worldwide, and pioneer innovative gaming experiences.

Founded in 2014 by Ali Alharbi, UMX has been at the forefront of developing engaging and entertaining mobile car games. With Jetapult's strategic support, UMX is poised to elevate its game development capabilities and solidify its position in the competitive gaming landscape.

Jetapult, known for its data-driven approach to gaming investments, will provide UMX with invaluable expertise and resources. The investment firm's team of seasoned gaming professionals will assist UMX in optimizing user acquisition, scaling monetization efforts, and leveraging cutting-edge analytics and AI technologies.

"This strategic partnership with Jetapult marks a pivotal moment for UMX," said Ali Alharbi, founder of UMX. "Their investment not only validates our potential but also provides us with the necessary tools and resources to accelerate our growth and innovation."

Jetapult's investment in UMX is a testament to the burgeoning gaming industry in Saudi Arabia. The region's growing appetite for gaming content and the increasing number of talented developers have created a fertile ground for investment opportunities.

As part of its global expansion strategy, Jetapult plans to invest in promising game studios in Southeast Asia, Europe, and the Middle East and North Africa (MENA) region. By supporting studios like UMX, Jetapult aims to foster sustainable growth and innovation in these emerging markets.

Jetapult's commitment to the gaming industry extends beyond financial support. The firm's "Invest & Operate" (I&O) model ensures that it provides hands-on guidance and operational assistance to its portfolio companies. This approach has proven successful in helping game studios achieve their full potential and deliver exceptional gaming experiences to players worldwide.

A Sharp Decline in Investment Activity

The Middle East and North Africa (MENA) startup ecosystem experienced a significant cooling down in August 2024. Total investments in startups plummeted to $83 million across 30 rounds, marking a 76% month-on-month (MoM) decrease from July's $355 million.

This downturn also represented a 24% year-on-year (YoY) decline.

No Mega Deals and Limited Debt Financing

The absence of any megadeals in August was a notable trend. The largest single investment was a $30 million allocation to Yuze. Debt financing accounted for only a small portion of the total investment, representing approximately 3%.

UAE Dominates, Egypt Struggles

The United Arab Emirates (UAE) continued its dominance in the MENA startup landscape, securing the majority of investment in August. UAE-based startups raised $55.7 million across 13 deals. Saudi Arabia followed in second place with $16 million raised through nine deals.

Egyptian startups, which had been at the forefront of MENA investment in July, witnessed a dramatic decline in August, raising only $7.6 million across four deals. Kuwait also made the top four thanks to a single deal worth $3 million.

Fintech and Web3 Remain Attractive

Despite the overall slowdown, investor appetite for fintech remained strong. For the third consecutive month, fintech maintained its position as the most funded sector in MENA, raising $54 million across eight deals. Web3 also regained its appeal, securing second place with $13.5 million in funding.

Early-Stage Focus and Undisclosed Stages

The majority of August's investment was directed towards early-stage startups. Two startups managed to raise $19 million for their Series A rounds, while five startups received a total of $15.6 million in seed funding.

Notably, a significant portion of the investment went to undisclosed stages, as seven startups did not disclose their funding round, accounting for $35.4 million.

B2B Remains Popular, Female-Led Startups Struggle

The business-to-business (B2B) model continued to attract investor interest, with 13 startups raising $46 million. Business-to-consumer (B2C) startups garnered $15 million across five rounds.

Female-led startups faced ongoing challenges, comprising a mere 0.3% of the total investment. Only one female-founded startup, Powder Beauty, secured an undisclosed pre-Series A round. Another startup with a female co-founder received a $150,000 accelerator grant.

August Highlights

Despite the overall downturn, the MENA entrepreneurial ecosystem witnessed several notable developments in August. A coalition of GCC-based family offices launched the "Waad Investment" firm with a target value of $200 million.

A $100 million fund was also established in collaboration between Gate Ventures and the Blockchain Centre in Abu Dhabi to support Web3 innovation.

In Egypt, T-Vencubator launched its inaugural initiative, "Where's the Problem?" to support the Egyptian ecosystem.

In the mergers and acquisitions (M&A) domain, the UAE-based property crowdfunding platform Maisour was acquired by Meteora Developers. Kuwait-based proptech Sakan also acquired the Qatari company Hapondo.

Entlaq, in collaboration with Wamda, released its biannual report on the Egyptian entrepreneurship sector for the first half of 2024, highlighting the challenges and opportunities faced by Egyptian startups.

The Lending Hub, a Saudi-based peer-to-peer lending platform, has secured a significant $3.2 million in funding led by Imbark and a group of angel investors.

This investment round was announced during the Fintech24 conference in Riyadh, underscoring the growing interest in fintech startups and the potential for innovative financial solutions in Saudi Arabia.

Founded in 2023 as a subsidiary of Imbark, a company committed to fostering entrepreneurship and innovation, The Lending Hub aims to revolutionize the traditional lending landscape by providing accessible and affordable financing options to individuals and businesses.

The company's focus on peer-to-peer lending aligns with global trends in financial technology, which emphasize transparency, efficiency, and direct connections between borrowers and lenders.

With the newly acquired funds, The Lending Hub plans to expand its operations, enhance its platform features, and strengthen its marketing efforts.

The company aims to attract a wider range of borrowers and lenders, increase transaction volume, and solidify its position as a leading player in the Saudi peer-to-peer lending market.

The investment in The Lending Hub is a testament to the growing confidence in the Saudi fintech ecosystem. As the country continues to diversify its economy and embrace technological advancements, startups like The Lending Hub are playing a crucial role in driving innovation and improving financial services.