MENA Startups Raise $355M In July, Marking 260% Yearly Growth: Report
By
Sana Tahir
Forbes Middle East Staff
Aug 13, 2024, 8:35 AM
MENA Startups Raise $355M In July, Marking 260% Yearly Growth: Report
The investment vlaue in the startup landscape in the Middle East and North Africa (MENA) rebounded in July. Image by Kowit Lanchu / Shutterstock
Startups in the Middle East and North Africa (MENA) region secured $355 million in funding from 38 deals in July, marking a 260% year-on-year increase in investment value, a new report showed.
MENA startups
On a month-on-month basis, the total investment value for MENA startups surged 206%, showing a recovery, according to a report published by WAMDA on Monday.
Egyptian startups secured the largest investment inflow, totaling $185 million from seven deals in July, compared to $15 million through four deals in June. Of this total, $157.5 million was secured in a single transaction by MNT-Halan, a microfinance lending and payment company.
According to WAMDA, UAE startups ranked second, securing $96 million across 12 investment deals.
Startups in Oman and Saudi Arabia followed, raising $37 million and $31 million, respectively. Oman’s total was attributed to a single startup, whereas Saudi Arabia’s amount came from seven deals.
Additionally, Qatar obtained $4 million from two investments, and Jordan raised $1 million through six transactions.
Distribution of funds
Fintech startups remained the popular choice for investors in MENA, attracting $180.8 million in capital investments through 16 deals in July.
The second most funded MENA sector was Web 3 startups, with two companies raising a total of $85 million in investments.
Cleantech and Deeptech startups ranked third and fourth, securing $37 million and $20 million in funding, respectively, with one deal each last month.
In terms of deal volume, e-commerce startups ranked second, raising $15.7 million through six deals, according to WAMDA.
The majority of funds in the MENA startup ecosystem were raised during the Seed and Series A rounds, totaling $96 million and $91.7 million, respectively.
Surprising fact
Around 93.8% of the total funds raised by MENA startups in July, amounting to $333 million, went to male founders. Ventures with mixed male and female founding teams received 5.8% of the funds, or $20.5 million, while female-led startups secured just 0.1% of the total, totaling $270,000. the report showed.
This story was updated at 9:38 am AST Tuesday.
By
Sana Tahir
Forbes Middle East Staff
Sana Tahir is a news writer at Forbes Middle East. Apart from daily business news, she enjoys writing about technology, lifestyle, internet sub-cultures, and issues of social justice.