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MENA Region Sees 182% Increase in Startup Funding

MENA Region Sees 182% Increase in Startup Funding
  • PublishedSeptember 19, 2024

The MENA region showed robust investment activity in the startup space, with a 182% increase in funding year-on-year in June 2024. A total of 38 tech startups raised $116 million, bringing the half-year total to $882 million. This data was released in the latest report by Wamda and Digital Digest.

In June, UAE-based startups secured $82.5 million across 15 deals, leading the region in funding. Egyptian startups raised $15 million across four companies, marking the second-highest total. Saudi Arabia’s seven startups raised $13.5 million, placing it in third. There was also interest in Iraq, where six startups raised an estimated $1.2 million. This amount could be higher, as Orisdi, BonLili, and Alsaree3 have not made their investment values public.

While these deals indicate healthy interest in startups, the period did witness a lack of any major deals, with the largest being Tenderd’s $30 million deal. Fintech continues to be the top invested sector, with 10 deals securing $38 million, closely followed by contech, largely due to Tenderd’s deal. Meanwhile, three proptech startups raised $19.6 million in June, reversing the lead it achieved in May.

The bulk of June’s investments was allocated to the pre-Series A stage, with four startups securing $45 million. The Seed stage followed closely, with five startups accumulating $27.3 million. Early-stage startups continue to draw significant investor interest, as eight startups at the pre-seed stage attracted $3 million, and another eight received $140,000 in grants.

Business-to-business (B2B) startups led the way in funding, amassing $66.4 million across 18 deals, representing 74% of the total investment. In comparison, 20 business-to-consumer (B2C) startups raised $49.5 million.

Male-founded startups overwhelmingly dominated the funding landscape, securing $103.4 million, or 89% of the total investments, while only two female-led startups managed to raise $200,000.

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