A total of 40 MENA startups raised $282 million in May 2024 marking a remarkable 413% increase from April’s $55 million.
This growth was primarily fueled by debt financing which contributed nearly $140 million to the total amount raised.
- The UAE-based startups secured the lion’s share of investment in the region, accumulating $189 million across 23 transactions
- Saudi startups followed in second place with a distant $56 million raised through 10 deals, while
- Egyptian startups claimed the third spot with $24.5 million distributed among four deals
In terms of sectoral performance, the Web3 sector attracted 2 investments in the month, totalling a value of $1 million. Overall, the proptech (property technology) sector took the lead as the top-funded sector, garnering $167.2 million over seven rounds.
The fintech sector notably lagged behind attracting $32.7 million in investments across 12 startups positioning it as the second highest-funded sector. Additionally, three startups in the logistics industry secured substantial funding totalling $25.3 million.
- The agritech sector showed signs of recovery in Q2 2024, with a total investment value of $23 million in May 2024
- Software-as-a-Service (SaaS) startups also experienced a bounceback, raising a total of $27 million across three transactions
- The Business-to-Consumer (B2C) model dominated the total funding, accounting for 62% and securing $174 million across 13 deals
- Business-to-business (B2B) startups, on the other hand, raised nearly $100 million
- There was notable activity in the VC space in May 2024, as several funds were launched in the region’s major ecosystems, most of them focused on the Saudi ecosystem.
- In Egypt, two funds were launched, including the alliance between Beltone and Microfinanza Italia to launch a $2.4 million project to support the startup landscape and the $3 million Glint Fund II
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