Saudi Arabia: Saudi Arabia’s startup ecosystem accounted for 60 percent of the Middle East and North Africa region’s funding in September, with $170.8 million raised across 23 deals.

According to Wamda’s monthly report, $282 million was raised across 63 startups in the region, a 234 percent increase month-on-month and a 607 percent rise year-on-year. Debt financing constituted 12 percent of the total raised.

Saudi mobility startup SHIFT led the month’s funding rounds by raising $82.8 million, followed by online car marketplace Syarah, which secured $60 million in a series C round, including $20 million in debt financing.

The UAE ranked second with $73.8 million raised by 12 startups, while Egypt trailed, with 13 startups collectively raising $25 million.

Fintech continued to dominate investor sentiment in the MENA region for the fourth consecutive month, attracting $102.5 million across 14 startups.

Mobility followed closely, driven by SHIFT’s substantial funding round. E-commerce and educational tech sectors showed strong activity, raising $63 million and $4.35 million, respectively, each with nine deals.

The software-as-a-service sector saw $10 million in investments across eight startups.

Accelerator programs had a notable impact on deal volume, with Flat6Labs’ demo days in Jordan and Saudi Arabia accounting for 17 deals valued at a combined $2 million.

Early-stage investments remained a priority for investors, who poured $102 million into 15 seed deals and $5 million into seven pre-seed startups. In contrast, only two later-stage rounds were reported, Paymob’s $22 million series B and Syarah’s series C.

Female-founded startups struggled to attract significant funding, raising only $583,000, mostly through grants.

In contrast, male-founded startups dominated the landscape, securing $260 million across 49 deals. Additionally, $21 million was raised by seven startups co-founded by both men and women.

AILA secures $1.15m for AI-powered edtech

Saudi edtech startup AILA closed a $1.15 million pre-seed round led by Sabah Hub, with participation from White Hill Capital and three other angel investors.

Established in 2023, AILA provides a generative artificial intelligence-powered platform for personalized and curriculum-aligned learning experiences.

The company plans to utilize the funds for regional expansion and technology enhancement.

Saudi Arabia’s Tawaref acquires Amaana.ai

Saudi-based investment community Tawaref acquired local AI company Amaana.ai for an undisclosed amount.

Founded in 2020 by Saeed Al-Ansari, Tawaref supports startups in the region with investments and entrepreneurial services, while Amaana.ai automates business entry processes into Saudi Arabia.

The acquisition aims to enhance Tawaref’s capabilities in providing innovative financial and technological solutions.

“The integration of Amaana.ai allows us to elevate our service offerings and reinforce our mission to support startups with advanced, AI-driven solutions. By blending our expertise, we’re providing smarter and more efficient solutions that will help our clients navigate the Saudi market with ease,” said Al-Ansari.

UMX raises $4.5m for global gaming growth

Saudi game studio UMX raised $4.5 million from Jetapult, an investment company backed by Accel Partners.

Founded in 2014, UMX specializes in developing mobile car games. The new capital will be used to expand UMX’s game portfolio and reach new audiences globally.

“This significant investment from Jetapult not only marks a milestone for UMX Studio but also heralds a new era for the Saudi Arabian gaming industry. We are thrilled to partner with a globally recognized leader in the gaming investment space,” said Ali Al-Harbi, founder of UMX.

JARAS Hospitality closes $666k pre-seed

JARAS Hospitality, a Saudi startup focused on integrated hospitality management solutions, secured $666,000 in a pre-seed round led by undisclosed angel investors.

The company, founded in 2023, plans to use the investment to further develop its product and expand its customer base.

“We are thrilled to have closed this investment round, which provides strong support for our vision to deliver innovative solutions that contribute to improving the hospitality sector. The investment will give us the opportunity to accelerate our growth and expand our market presence,” CEO Ahmed Al-Zubaidi said.

SVC invests $15m in Vision Ventures’ Saqr Fund II

Saudi Venture Capital committed $15 million to Vision Ventures’ Saqr Fund II, a $90 million-target venture capital fund that will focus on early-stage startups across Saudi Arabia and the broader MENA region.

Vision Ventures, founded in 2016, is a sector-agnostic firm investing in early-stage tech startups.

WellPal relocates to Saudi Arabia after new funding

Egyptian health e-commerce platform WellPal relocated its operations to Saudi Arabia following an undisclosed investment from an angel investor.

Founded in 2019 by Mohamed Ali and Mohamed Tantawy, WellPal, a Flat6Labs portfolio company, offers health products for fitness and wellness through its app.

The company aims to strengthen its position in the Saudi market and expand regionally.

“We are proud to support the Saudi Vision 2030, particularly in enhancing the quality of life for its citizens. Through WellPal’s AI-powered features, we look forward to providing tailored health and lifestyle products that can help our customers make smarter and healthier choices,” Ali, the firm’s CEO, said.

Rabbit Mobility raises $1.3m to fuel North African expansion

Egyptian micromobility startup Rabbit Mobility closed a $1.3 million investment round led by 500 Global and Untapped Global.

The funds will support the company’s growth and expansion across Egypt and other North African markets.

Rabbit Mobility was founded in 2020 by Kamal El-Soueni, Mohamed Mansoury and Bassem Magued and provides a fleet of electric scooters for urban mobility.

Morocco’s Agenz secures funding from Renew Capital

Morocco-based property tech startup Agenz received an undisclosed investment from Renew Capital.

Founded in 2020 Malik Belkeziz, Agenz offers instant property valuations using advanced data intelligence.

“Our platform helps people make smarter decisions by providing accurate data on property values and market trends,” said Belkeziz.

The funds will help the company expand its reach in Morocco and other African markets.

Moonbase Capital launches $15m investment fund

Spain-based Moonbase Capital launched its second investment vehicle, a $15 million fund aimed at acquiring and growing small to medium-sized enterprises worldwide.

The fund will target emerging markets, including Latin America, Southeast Asia, and the Middle East, with a focus on investing in 15 SMEs over the next three to four years.

The first close is expected in the first quarter of next year, with capital sourced from family offices and high-net-worth individuals in Europe, Egypt, and the Gulf Cooperation Council.

Abhi raises $15m debt financing round

UAE-based fintech Abhi has raised $15 million in debt financing in a round led by Shorooq Partners and Amplify Growth Partnership.

Established in Pakistan in 2021 by Ali Ladhubhai and Omair Ansari, Abhi focuses on improving financial inclusion for employees and SMEs across the MENA and Pakistan region.