MENA Startups Secures $355 Million in July 2024

Startups in the Middle East and North Africa (MENA) region raised $355 million in July 2024, marking a 206% month-on-month (MoM) increase and over 260% growth year on year (YoY). This recovery comes amid global economic challenges and rising geopolitical tensions between Israel and Iran, with the expectation of a Fed rate cut in September providing some optimism, according to recent data from Wamda and Digital Digest.^[1]  

Debt financing accounted for less than 1% of the total investments, indicating a possible recovery in the MENA tech ecosystem after a slow start to the year.

Egypt was the top performer securing $185 million across seven deals, with $157.5 million from a single transaction by MNT-Halan. This is a significant increase from the $15 million raised in June. The UAE followed with $96 million invested in 12 startups, while Saudi Arabia saw a decline, securing $31 million across seven deals. Oman ranked third, with $37 million raised by 44.01.

Fintech attracted the most investment, drawing $181 million across 16 startups. Web 3 providers followed with $85 million, while deep tech and cleantech gained attention due to investments in 44.01 and Intelmatix. E-commerce also remained active, with six startups raising $15.7 million.

Investors focused on early-stage startups, with seed-stage companies receiving $96 million and Series A startups attracting $91.7 million. B2B models continued to lead, receiving $345 million across 27 businesses, while B2C startups secured $8 million.

Mergers and acquisitions (M&A) saw some activity, particularly in the UAE. Notable deals included the acquisition of BitOasis by India-based CoinDCX and Power League Gaming by Muller & Phipps Middle East Group. Lableb also acquired Majarra.

The gender gap in investment remains, with only two female-led startups raising $270,000 in July, while male-led startups secured the majority of funding.