Startup Funding in MENA Experiences Significant Growth
RIYADH: In August, startup funding in the Middle East and North Africa soared by 74 percent compared to the previous year, amassing a total of $337.5 million across 47 transactions.
This impressive figure underscores persistent investor enthusiasm, even as the market undergoes recalibration. However, the monthly total marks a significant decline of 57 percent from July’s remarkable $783 million.
For the second consecutive month, Saudi Arabia emerged as the regional frontrunner, attracting $166 million distributed among 19 deals. The UAE closely followed, securing $154 million through 11 startups.
This concentration of funding in both Saudi Arabia and the UAE illustrates their unparalleled dominance in regional venture activities. Conversely, Egypt, traditionally a key player, exhibited ongoing weakness, gathering only $14.7 million across eight startups.
Iraq, which secured the third position in July, fell to fifth place with a solitary $1.5 million transaction, while Morocco preserved its standing within the top four.
Among the sectors, property technology led the charge, raising $96 million over four deals, demonstrating sustained investor interest in real estate innovations. Fintech followed, garnering $68.3 million across five transactions, recovering from a dip in July.
Construction technology secured the third position, bolstered by MYCRANE’s substantial $50 million round. Meanwhile, the gaming industry ascended to fifth place, fueled by $12.6 million in Saudi-led investments, signaling the Kingdom’s ambitions in digital content and gaming.
The month witnessed a predominance of later-stage funding, with three Series B rounds accruing $112 million and three Series A rounds garnering $82 million.
Debt financing constituted $60 million, or 18 percent of the total funding. Early-stage ventures faced a notable slump, with 31 startups collectively raising a mere $22 million.
The data reflects a more discerning investment landscape, with capital increasingly favoring scale-ups over nascent ventures. B2B startups dominated the funding scene, amassing $180 million across 32 deals, while B2C ventures followed with $116.9 million from nine transactions.
This shift indicates a growing investor preference for startups with clearer monetization strategies and a focus on enterprise solutions. The funding landscape remained predominantly male-dominated, with male-led startups securing $263.5 million across 41 deals. However, female-led enterprises demonstrated resilience, raising $72.3 million through two Saudi-based startups—Gathern and Phys—while mixed-gender teams attracted $1.6 million.
Orbii Secures $3.6 Million Seed Round
Saudi-based credit infrastructure platform Orbii has successfully closed a $3.6 million seed funding round aimed at expanding its operations throughout the MENA region. The round was spearheaded by Prosus Ventures, with participation from VentureSouq, DASH Ventures, Taz Investments, and Sanabil 500.
Founded in 2024, Orbii is developing an artificial intelligence-powered platform designed to facilitate faster and more precise SME lending solutions for banks, fintechs, and B2B marketplaces. The technology seamlessly integrates with banking systems, fintech platforms, point-of-sale networks, and ERP software to enable real-time credit assessments.
With this funding, Orbii aims to enhance its presence in Saudi Arabia and the UAE while bolstering its engineering and data science teams, driving towards its mission of unlocking $1 billion in SME financing by 2026.
Fitting Raises $500,000 Pre-Seed Funding
Saudi-based construction technology startup Fitting has secured $500,000 in a pre-seed funding round, led by a strategic angel investor. This capital will facilitate technological advancements, team expansion, and strategic partnerships within the Kingdom’s rapidly evolving construction landscape.
Founded in 2024, Fitting operates a digital marketplace that connects wholesale building material suppliers with retailers and property developers, addressing inefficiencies in procurement through enhanced transparency and waste reduction.
The company is positioning itself to play a pivotal role in Saudi Arabia’s construction ecosystem amid Vision 2030 and large-scale projects like Neom and Qiddiya.
MoneyHash Partners with Noon Payments
The payment orchestration platform MoneyHash, anchored in the Middle East and Africa, has forged a strategic partnership with Noon Payments to elevate access to localized payment options across the Gulf region.
This collaboration enables businesses to activate key regional payment methods—including Mada, KNET, and Benefit—through a single API. By merging MoneyHash’s orchestration technology with Noon Payments’ extensive reach, the initiative aims to streamline operations and enhance customer experiences.
The joint endeavor focuses on digital-first entities seeking expedited deployment, seamless backend integration, and improved approval rates amidst fragmented payment systems.
21Doctors Raises Pre-Seed Round for AI Medical Infrastructure
Saudi-based health tech startup 21Doctors has finalized its pre-seed funding round, bolstered by a cohort of strategic angel investors. The company has established its headquarters in Saudi Arabia, designed to serve as the operational and developmental hub.
Founded by Osama Al-Mabroum and Rania Abu Taleb, 21Doctors is committed to developing AI-driven healthcare tools tailored for Arabic-speaking medical professionals. The platform is aligned with the Kingdom’s Vision 2030, aimed at facilitating digital transformation within the healthcare sector.
The company plans to extend its technological offerings and form partnerships across the Gulf, following early traction in Saudi Arabia and Jordan.
DawaDose Secures Pre-Seed Funding for Digital Pharmaceutical Platform
Saudi-headquartered health tech startup DawaDose has raised an undisclosed sum in a pre-seed funding round with the support of angel investors. The funds will be allocated towards establishing its headquarters in the Kingdom and expanding into regional markets.
Founded by Rushdi Abdalghani and Osama Al-Mabroum, DawaDose is developing a fully integrated B2C and B2B pharmaceutical ecosystem utilizing AI-powered digital tools to connect pharmacies, wholesalers, and consumers. The company’s roadmap focuses on strengthening partnerships and gearing up for regional expansion, closely aligned with Vision 2030.
TERN Group Closes $24 Million Funding Round
TERN Group, an AI-powered healthcare talent mobility platform based in the UK and UAE, has raised $24 million in a Series A funding round led by Notion Capital. This latest round elevates the company’s total funding to $33 million, with contributions from EQ2 Ventures, RTP Global, LocalGlobe, Leo Capital, Presight Capital, and DST Global’s Tom Stafford.
Founded in 2023 by Avinav Nigam and Krishna Ramkumar, TERN specializes in training, certifying, and deploying healthcare professionals from 13 countries into high-demand markets, significantly reducing recruitment timelines from several months to under 10 weeks. The new capital will bolster its AI, training, and compliance infrastructure as well as support growth across the GCC, Europe, and the UK.
VentureSouq Establishes Fintech Fund II
The UAE-based venture capital firm VentureSouq has successfully closed its second fintech-focused fund, FinTech Fund II, with backing from notable limited partners such as Jada Fund of Funds, Saudi Venture Capital Co., Saudi Awwal Bank, Mubadala, Takamol, Krafton, and Jordan’s ISSF.
This fund will concentrate on early-stage fintech and Software-as-a-Service startups throughout MENA, targeting sectors including payments infrastructure, digital banking, alternative credit, insurance technology, and property technology.
With over $250 million in assets under management and a proven track record that features investments in firms like Tabby, Huspy, Yassir, and Mozn, VentureSouq continues to strengthen its foothold within the regional innovation ecosystem.
AI Fintech Metric Gains Funding for GCC Expansion
UAE-based fintech Metric has secured investment from A-typical Ventures, with contributions from 500 Global, Hub71, i2i Ventures, Plus VC, Epic Angels, Oqal Angels, and regional angel investors. This funding will bolster product development and facilitate regional expansion.
Founded in 2022, Metric offers founders and small business proprietors tools that simplify intricate financial data. The platform comprises dashboards, benchmarking tools, forecasting capabilities, and an AI adviser aimed at guiding users in making informed data-driven decisions.
Property Finder Successfully Raises $525 Million
UAE-based real estate platform Property Finder has successfully raised $525 million via a minority stake sale to Permira and Blackstone. General Atlantic also partially exited during this transaction but remains a key shareholder.
This sale signifies Permira’s inaugural investment in the Middle East. Property Finder intends to utilize the newly acquired capital and alliances with Permira, Blackstone, and General Atlantic to expedite growth in Saudi Arabia and Turkey.
This transaction follows a $90 million debt financing round in 2024, which was led by Francisco Partners.
PRYPCO Completes Pre-Series A Round
UAE-based proptech platform PRYPCO has finalized a pre-Series A round of undisclosed value, led by General Catalyst. Since its establishment in 2022 by Amira Sajwani, PRYPCO claims to have facilitated nearly 10 billion dirhams ($2.72 billion) in mortgage transactions and supported over 3,000 Golden Visa applications.
The company operates PRYPCO Blocks, which offers fractional property ownership, and PRYPCO Mint, a tokenized real estate investment platform. The newly acquired funding will assist in expanding the platform’s offerings, engaging with regulatory bodies, and continuing its growth across the MENA region.
Source link: Arabnews.com.
