Egyptian Startups Raised $88.7 Million in H1 2024
The Entlaq report rated Egypt's venture capital financing at 2.81, suggesting there is room for growth.
Egyptian startups have raised $88.7 million across 39 transactions in the first half (H1) of 2024, despite economic challenges such as exchange rate instability, the float of the EGP, and rising interest rates, according to data from Cairo-based think tank Entlaq.[1]
Egypt’s startup ecosystem, which includes over 2,100 startups valued at more than $8 billion, employs over 50,000 people. Key funding rounds included F&B logistics startup OneOrder raising $16 million in a series A round and pharma delivery startup Yodawy securing $10 million from Egypt-based private equity firm Ezdehar Management. Other rounds included fintech Connect Money’s $8 million seed funding and Sahl’s $6 million round led by the government’s Ayady for Investment and Development.
Local investors like Acasia Ventures, Ezdehar, and EdVentures, along with foreign investors such as Saudi’s Sukna Ventures and Nigeria-based Ingressive Capital, were significant contributors to these rounds.
Startup funding fluctuated during the period, with January seeing the highest investment of $28 million, which dropped to $4.6 million in February due to concerns about the Egyptian market. The float of the EGP in March helped improve investor confidence, leading to investments of $25.2 million in May and $15.1 million in June.
The Entlaq report rated Egypt's venture capital financing at 2.81, suggesting there is room for growth. To strengthen the startup ecosystem, the report recommends targeted programs for growth-stage startups, tax breaks for VC firms, incentives for foreign investors, and a unified government strategy for entrepreneurship. It also suggests improving financial infrastructure, encouraging private sector incubators and accelerators, and establishing public-private partnership funds.