Arab News, Tuesday, Jul 09, 2024 | Muharram 3, 1445
MENA startups raise $116m in June, pushing first half of 2024 to $882m
Saudi Arabia:
RIYADH:
Investment activity in the Middle East and North Africa region’s startup
space slowed in June with 38 tech startups raising $116 million, bringing
the half-year total to $882 million, according to the latest data.
The amount raised in June saw a 59 percent month-on-month decline from the
$282 raised in May but marked a 182 percent increase compared to the same
period last year, according to venture news platform Wamda.
In its latest monthly report, the platform stated that UAE-based startups
led the region, securing $82.5 million across 15 deals. Egyptian startups
followed with $15 million raised by four companies, marking the
second-highest total.
Saudi Arabia dropped to third, with seven initiatives raising $13.5 million.
Notable activity was also observed in Iraq, with six startups raising an
estimated $1.2 million, though this amount could be higher as Orisdi,
Bonlili, and Alsaree3 did not disclose their investment values.
June was marked by an absence of mega deals, with Tenderd’s $30 million
agreement having the biggest ticket size.
Sector-wise, fintech reclaimed its position as the most funded field,
securing $38 million with over 10 deals, closely followed by construction
technology, thanks to Tenderd’s deal. Meanwhile, three proptech startups
raised $19.6 million in June, reversing the lead it achieved in May.
The majority of June’s investment went to the pre-series A stage, with four
startups receiving $45 million, followed by the seed stage, where five
startups raised $27.3 million.
However, when considering investment volume, early-stage startups are still
capturing the attention of investors, with eight startups at their pre-seed
stage garnering $3 million and an additional eight securing $140,000 in
grants.
Startups operating the business-to-business model dominated most of the
funding in June, raising $66.4 million across 18 deals, accounting for 74
percent of the total investment, while 20 business-to-consumer startups
raised $49.5 million.
The majority of funding went to male-founded startups, which received $103.4
million, or 89 percent of the total, while two female-led startups raised
$200,000.
The UAE was the top-funded ecosystem in the region in the first half of
2024, with 91 UAE-based startups raising $455.5 million, down from $604
million in the same period last year.
Saudi Arabia followed, attracting $300 million in total funding, down from
$554 million last year.
Egypt’s economic crisis has pushed the Egyptian startup ecosystem to a
drastic decline, with just 33 startups raising $83 million, an 80 percent
drop from the same period last year.
In contrast, the Moroccan ecosystem gained momentum, with six startups
securing $12.5 million in funding in the same period.